The Responsibilities of an HOA Property Management Company

October 12, 2023

Successfully managing a homeowners’ association (HOA) isn’t always easy and can quickly become overwhelming for a board of directors. That’s why many boards seek assistance from professional managers and management companies to support them in fulfilling their responsibilities, meeting their obligations, and completing daily tasks.

Read on to find out what HOA management companies do for boards, how they can help, and why it’s a great option for any community looking to improve results.

What is a Community Management Company?

A community management company, also known as an HOA management company, is a company hired by the board to handle tasks they can’t perform themselves or don’t have time to complete. In most cases, these companies oversee the operational aspects of the association and aid with maintenance, financial matters, and various community initiatives.

Is a property management company part of the HOA board of directors?

No, a property management company isn’t part of the HOA board of directors. While the property management company works closely with the HOA board and provides valuable expertise, it’s not part of the board itself. Instead, it operates under the board's direction to make the HOA run smoothly.

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Does a property management company use its own HOA software?

HOA management companies may often leverage proprietary or third-party solutions, depending on their preferences and needs to efficiently manage communities.

7 Things an HOA Management Company Can Do for Your Community

Partnering with a property management company can significantly benefit your HOA. Here are seven things these organizations can take on to improve operations.

1. Managing finances.

Maintaining an association's finances is a key board responsibility, but it can be challenging, especially if board members don’t have a background in accounting. Proper financial management is imperative, as mishandling funds can be detrimental to the association.

Luckily, many management companies have experienced accountants and use up-to-date software to accurately manage finances while prioritizing your community’s security and safety. Essentially, they can:

Execute everyday financial tasks.
Create a solid yearly budget.
Maintain records.
Provide suggestions to avoid unexpected charges.
And more.

2. Enforcing community policies.

Adhering to governing documents is important to maintain order and quality of life in residential communities. These documents are in place to:

Promote property value preservation.
Preserve community aesthetics.
Enhance safety.
Resolve disputes.
Provide clear governance.

However, board members may find enforcing these rules and regulations difficult, potentially resulting in unprecedented interactions with residents. Hence, community management companies can step in to assist.

Besides being thoroughly knowledgeable about an HOA’s rules and regulations, the management company can also implement these policies and guidelines and ensure compliance on behalf of the board of directors. Additionally, they can facilitate consistent and transparent rule enforcement, provide solutions for resolving owner complaints, and address compliance issues.

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3. Coordinating with vendors.

Effective vendor management is vital to a community's well-being, but it can be demanding for busy HOA board members. Therefore, many boards recruit property management companies to manage vendors and contractors to keep their communities running smoothly. Here are some examples of what management companies do:

They coordinate vendors by confirming that essential services, like landscaping and maintenance, are regularly delivered.
They negotiate vendor contracts to help HOAs secure favorable terms and cost-effective pricing.
They solicit competitive bids from vendors so HOAs can get the best value for their money, balancing cost savings with service quality.
They oversee quality control so that services meet the community's standards, preserving reputation and property values.
They manage costs by optimizing vendor expenses so the HOA can reduce fees for residents while maintaining service quality, making the community more attractive.
They act as a point of contact to streamline communication and administrative tasks, freeing up HOA board members' time to focus on community improvements.
They handle compliance and legal matters, certifying that vendors comply with regulations and insurance requirements to protect the HOA from legal and liability issues.
They respond to emergencies through established vendor relationships to prevent further damage during crises.

4. Reducing risk.

Another perk of a management company is risk mitigation. Volunteer board members aren’t required to be HOA experts, but community managers are. Because these professionals have expertise in community management derived from education courses and certifications and designations through the Community Associations Institute (CAI), they can regulate risk by thoroughly assessing liabilities and offering trusted guidance.

Boards can also use their expertise to stay updated on the latest developments in the community association industry and gain access to resources not readily available to typical volunteers. Thus, they can have confidence in the accuracy and legality of the advice and counsel they receive.

A management company can also assist in affirming that the HOA’s insurance coverage is adequate and up-to-standard. Plus, they will:

Regulate safety hazards.
Address outstanding risk.
Endorse that all community members are well informed about potential risks affecting their community.

5. Completing administrative office duties.

Because most board members don’t have time, a property manager often acts as the primary on-site and administrative resource for an HOA. Having someone committed to supporting the community by managing daily operations and office duties can ease the burden of dealing with administrative tasks such as:

Assisting HOA with budgeting.
Coordinating board meetings.
Answering phone calls, voicemails, and emails.
Creating and maintaining reports as needed.
Cooperating with tasks related to accounting or invoicing.
Planning agendas and events when necessary.

6. Overseeing sites.

Many residents choose to live in an HOA because of the amenities. Property managers are instrumental for HOAs, as they can manage these common areas and shared facilities. They oversee maintenance, budgeting, and vendor selection to ensure these areas are well-kept and safe for residents. Other tasks may include:

Managing bulk trash and yard maintenance requests.
Arranging that large playground or outdoor equipment are correctly stored.
Ensuring common and recreational centers are appropriately tended to.
Regulating vendors (if necessary) to confirm that maintenance requests and contract jobs are accurately completed.

7. Keeping an open line of communication with residents.

Quality communication between residents and the HOA board is essential for addressing concerns, sharing information, and fostering a harmonious community environment. Seasoned communication professionals, leveraging support from a property manager will establish transparent and efficient communication. They can guide the board to disseminate important details, updates, and notices to residents, informing them about community news, rules, and upcoming events.

HOA Software Preferred by Communities Worldwide

Many community managers and professional community management companies are able to complete these tasks and improve communities because of technology. HOA software not only enhances communication, streamlines operational processes, and mitigates board member burnout, but also offers a plethora of user-friendly functions and features to elevate workflows and resident satisfaction. Explore the benefits of leveraging an industry-leading digital platform, like TownSq. Act now and witness why TownSq's groundbreaking HOA software is embraced by millions of residents across North and South America!