Running a Homeowners Association is often more involving than most people think. Indeed, you have to manage daily affairs such as record keeping, service delivery, and handling member concerns. In addition, there are administrative duties that can become quite time-consuming to keep up with.
This is where HOA Management Companies step in. They are essentially outsourced management companies that provide critical support to the daily operations of an HOA. HOA management companies come in many different forms. Some only assist in a few areas such as financial management and property maintenance, while others take on a more involved role such as enforcing HOA rules and resolving disputes between homeowners.
So what can you expect when you decide to seek the services of an HOA management company?
Services offered by HOA Management Companies
Financial transactions and record keeping
Many HOA board members are not necessarily professionals in financial management and accounting. To make up for this shortfall, they can choose to outsource the financial management of the HOA to a company that saves them costs and operational expenses.
Indeed, a management company can efficiently handle the finances of your HOA by preparing monthly financial statements, distributing financial information to individual homeowners, and managing the HOA’s bank accounts and other assets. Management companies can also audit the HOA’s expenses and assist in the preparation of budgets that align with the HOA’s goals.
Enforcing HOA Community rules
In certain cases, HOA management companies can also enforce the rules of the community on behalf of the HOA board. For example, they can regularly collect dues, pursue homeowners who have fallen behind in their payments, and enforce the agreements that may have been put in place between two disputing homeowners.
Maintaining the appearance and proper functioning of the property is a critical function of any HOA. HOA management companies can step in to process work orders quicker, provide emergency maintenance services, and follow up on planned renovation projects. In this way, they save time and effort on the part of the HOA board.
Providing customer service to HOA members
HOA management companies can also provide essential customer support to members. Over time, they will gain a better understanding of the needs of your HOA and will be in a position to respond to member concerns much quicker than the board itself.
In this way, the board can concentrate on more pressing issues as opposed to the minor concerns that may be raised.
How does an HOA Management Company Operate?
In order to provide the critical support services that they offer, HOA management companies need to operate in a well-defined manner that suits the needs of the HOA. As a result, management companies will typically operate in the following ways.
They support the operations of the HOA
HOA management companies take on a primarily supportive role. They are not meant to replace the functions of the board itself, but rather to save on time-and-effort that the board would otherwise take in implementing repetitive functions. They also play an important role in promoting informational transparency across the HOA.
However, the board is still responsible for making important decisions such as determining fines and penalties and resolving sensitive member disputes. The board also has the final decision regarding complex financial matters.
Each Management Company is unique
Not all management companies are alike. In fact, any two management companies will differ in their ability to offer various supporting services. If you’re looking to outsource management, take your time to identify the best fit for the needs of your HOA.