A homeowners’ association, often known as an HOA, is frequently confused with an HOA management business. An HOA management company specializes in providing professional community management.
While an HOA is simply an association of volunteer homeowners with the primary purpose of attending to the community’s needs and wants, an HOA management company is an affiliation of nonprofit property owners with the predominant purpose of complying with the community’s necessities and interests.
HOA management companies can save your neighborhood and trustees time, money, and worry, but few people understand how to do so. In addition, it might be difficult to tell what services and advantages a professionally managed community gives because they are sometimes mistaken for the HOA board itself.
Here are a few key points to remember about HOA management companies:
Not members of the Homeowners Association or its Board of Directors
The governance of the community is the responsibility of the HOA board. This means they choose the look and care of common spaces based on the CC&Rs, and they impose penalties on non-compliant households. HOA board members are homeowners who have volunteered to serve on the board; they are not paid employees of the HOA management company.
Communities may engage a third-party management business to enforce their regulations, communicate with homeowners, and maintain common spaces. Some organizations may even hire an on-site administrator to handle these responsibilities. However, because both procedures are closely linked, it’s simple to confuse one for the other.
Simply put, the HOA Management Company assists the HOA board in enforcing the regulations and decisions made by the HOA board. Therefore, your organization board, not the management business, has all decision-making control.
Scalability is a feature of management solutions
A community association management company provides a variety of services. Different HOA management businesses offer services that meet the demands of various communities. For example, townhouse, condominiums, and master-planned single-family houses all have their facilities and common areas, as well as their own set of demands.
They should provide the following services:
- Accounting Administration
- Support for Homeowners and Residents
- Management of Deed Restriction
- Management of tasks and projects
- Assistance to Vendors
- Staff that has been trained and certified on-site
- Assistance with Architectural Control
- Delinquency Accounting and Collections
Their goal is to create a sense of community
Yes, the rules and regulations set by your homeowners’ association and board members are enforced by HOA management companies. We understand that this might make them appear adversarial, but that is never our intention. Instead, we want to raise the value of your area and create a sense of belonging.
They pay close attention to the smallest of details and think about how we might involve homeowners and residents in every step of the process. Regularly urge their boards to organize holiday and fun activities because they understand how important it is to have a happy life.
Budgeting and Finances
Financial management is one of the critical business responsibilities that a community management firm can assist your organization. There are several obligations for financial recording and reporting and the processing of assessments, delinquencies, and collections, to name a few (both by state laws and legislation and by governing documents).
The accounting department of any HOA management company works for the homeowners’ association. These are responsibilities that the homeowners may not fulfil due to a lack of time. The following are some of them:
- Collection of Dues: HOA management businesses are frequently tasked with collecting dues from residents on the authority of the HOA. It’s worth noting that the management corporations don’t keep these funds; instead, they deposit them into the institution’s account.
- Financial Reporting: The HOA management business may be responsible for preparing financial statements for the board of directors. Based on the board’s negotiated upon, publishing these financial reports might have a predetermined periodic schedule, such as weekly, monthly, or bi-monthly. These accounting records give homeowners’ boards a clear picture of their association’s current financial situation.
- Trustee Duties: It is the formal obligation of an HOA management business to submit this property paperwork to the new homeowners whenever a circumstance demands drawing up documentation for properties to be sold or leased inside the association. They might help ensure openness between new homebuyers and residents’ associations by functioning as escrows.
It’s undeniable that these types of management companies provide competence to an HOA’s managerial and facilitation procedures by outlining some of the essential things you need to know about what an HOA management company is all about, such as the various roles they play and tasks they could do for a neighborhood.
With this information, you should urge your HOA to hire a reliable and renowned HOA management company to assure your community’s optimal growth and consistent performance.