With property owners, it’s natural to feel frustrated when they’re heading to work but the parking lot hasn’t been cleaned, or when it takes weeks for a maintenance vendor to arrive. It might be that they have qualms about a certain rule within the community too.

Many people think that it’s the property management company that has to answer all of these problems. However, you have to understand the difference between the homeowners’ association and HOA management company first so you know if your board is to blame or not.

HOA board versus HOA management

Both parties work hand-in-hand to build the community and handle the business operations. Much like a machine, together they make up different parts that keep the community in continuous operation. Their lines of responsibility sometimes start to blur leading to managers performing functions meant for the board though.

To prevent such a mishap, it’s important to know which responsibilities fall under the control of the management company and which ones belong to the board. While the HOA board may benefit from the help of a manager, there are some duties that must remain for them to perform alone.

With the HOA board…

Although homeowners have to take care of their own properties, maintaining common areas or shared properties is the job of the board. Shared properties include but are not limited to neighbourhood signs, community parks, pools, lobbies, clubhouses, and even shared pipes.

This applies to communities with townhouses and single-family homes. In condominiums, board duties extend to other shared properties like the parking lot, hallway, and roof deck. While these duties seem simple, there’s much administrative work involved in maintaining these properties.

Your HOA board has to set and manage an annual budget, choose the right vendors, enforce the rules, oversee the maintenance, and so on. The governing documents formed at its inception state what the board must do. They must make decisions and perform fiduciary duties with the community’s best interests in mind.

Despite their role, HOA board members must not expect special treatment or added benefits. Like regular homeowners, they have to pay assessments and follow the rules of the association. They are volunteers elected into their positions so they don’t receive any salary either.

With the HOA management company…

Running an HOA is much like running a business as it takes a lot of work. Some smaller communities may operate smoothly with a board alone, but larger ones need help. Most boards bring in a management company to assist with daily operations.

As the manager offers a helping hand, the board performs all of the decision-making. Other duties include communicating with the residents, making choices for the executive board, and assisting with the administrative work. Creating fine schedules and policies is also part of their job.

Homeowners association management companies act mainly as advisers rather than leaders. However, it’s hard to determine the duties of HOA management companies versus HOA boards without concrete examples. Let’s look at the specifics of the responsibilities of an HOA management company then.

Enforcing rules

To maintain property values, the HOA management company has to fairly enforce the rules within the community. This may involve:

• Sending notices to residents who are violating the rules
• Following up with homeowners who were served notices to correct their wrongs
• Regularly checking the community to spot any violations made
• Functioning as the contact person for any questions or reports of violations
• Conducting on-site inspections to verify compliance of residents

Managing the accounts

Making reports, handling the financial records, and doing general bookkeeping tasks are complicated, even in smaller associations. Professional HOA management companies are capable of helping by:

• Preparing accurate and timely reports
• Advising the board when creating the budget
• Distributing reports to the board of directors and residents
• Setting up and monitoring reserves for unforeseen losses and future projects
• Handling and reconciling ledgers and bank accounts

Sending and collecting bills

The HOA management company has to be consistent with billing and collecting dues from homeowners. Assessments need to be done regularly for the financial stability of the community. The following tasks related to fees, fines, and dues are also conducted by managers:

• Dispatching notices to homeowners who are behind on their payments
• Escalating delinquent accounts to people in-charge of collections
• Staying updated on the local laws and guidelines related to collections
• Sending out bills to residents, usually on a monthly basis
• Keeping the board updated on the status of problematic accounts
• Coordinating with the collection attorney for legal actions related to overdue assessments

Maintaining the community’s condition

As previously mentioned, maintaining property values is also a responsibility of the HOA manager, so they have to perform these tasks:

• Observing the overall condition of the community to confirm if contracted services are provided as promised
• Fielding any and all maintenance requests from board members and homeowners
• Ensuring common areas and shared properties are accessible and well-maintained
• Hiring and paying for snow removal, pool maintenance, lawn care, and other vendor services

Work with an HOA manager

It’s crucial that HOA boards not have any misunderstandings about the responsibilities of the HOA management company. They should only take on duties that are meant for them alone. To minimise the confusion and boost efficiency of operations, consider hiring a virtual HOA manager today.

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