Responsibilities of an HOA Management Company
When is it time to hire an HOA Management firm? Whether you’re facing some tough financial decisions or simply concerned about how your association is performing, now is the time to consider a contract with a professional seriously. Hiring an HOA manager will make the difference between maintaining your present way of doing things or turning it all around and making it work for you. The following are some of the benefits of hiring an HOA professional:
What is the Difference between Property Management and Site Management? Both are integral aspects of owning a community property. However, while HOA property management deals primarily with issues involving exterior maintenance and such, site management deals with the association’s dedication to maintaining its properties for its residents. This includes maintaining a “green” environment by working to prevent damage caused by stormwater runoff. While both are important to an HOA, the difference lies in the level of focus an HOA site management firm will give over the exterior maintenance aspects.
Why Should I Hire an HOA Management Company? Most homeowners don’t see eye to eye with the responsibilities of the HOA directors. In some cases, the board may take responsibility for areas of the community that aren’t in their budget or to areas where residents feel they are over-represented by the board. An HOA site management company can help to resolve these differences and get the best results for the association’s budget and for each homeowner.
Who are the Board of Directors? The primary members of the HOA board are the current board members, who are also generally the longest-serving members. In addition to the board members, there are the Secretaries-usually a non-profit organization dedicated solely to the oversight of the HOA. Other significant officers include the Assistant Directors and the Finance Committee. The Secretaries and the Assistant Directors essentially regulate and monitor the HOA as a whole, and play a role in making sure the governing documents are in order, and the budget stays within the guidelines set forth by the HOA.
How do the HOA’s governing documents affect me? The most common area of responsibility of HOA management companies is performing and fulfilling the necessary duties set forth in the governing documents. For example, the Board of Directors is responsible for overseeing and implementing the policies set forth in the governing documents. Therefore, every aspect of how the HOA is run reflects directly upon the directors of the association.
How long do the HOA’s governing documents actually allow for? The primary purpose of these documents was to provide a method of regulating the association that ensures its long-term survival. However, over time, the length of the documents has grown, and now they cover more areas than initially envisioned. Because of this, the responsibilities of the management company have increased along with the number of areas in which they must monitor and manage.
Who are the people who will be responsible for the oversight of the HOA? The typical board members are the homeowners themselves. However, in some cases the association may include other homeowners, such as a neighboring business or professional service provider. In this case, the service provider would also have a say in how the HOA is run, and the homeowner would not necessarily be involved in decision making. Ultimately, the homeowner is the one who will be ultimately responsible for how their neighborhood runs.
How are these additional responsibilities different from the primary responsibilities of the HOA? While the Board of Directors is still primarily responsible for approving or denying new Homeowners Association fees, new Homeowners Association responsibilities include having the authority to enter into agreements with outside vendors. The Management company takes care of all contract matters, making sure that all fees are paid according to agreements. Lastly, it is the duty of the homeowners to make sure that their property and personal property insurance are in good standing.