Many homeowners’ associations are independent, which means that they handle their finances on their own. This may be because they believe that seeking outside help is unnecessary or they lack the budget to hire anyone. All of their bookkeeping or accounting is handled by the board members.

If your association is bigger in number or manage complicated transactions, you’d do well with some assistance. While you’re not legally required to outsource tasks, you’ll appreciate property management companies. It might be challenging to determine between your rights and responsibilities from theirs, however.

What is a homeowners’ association (HOA)?

Condominium buildings and suburban neighbourhoods are made up of multiple housing units owned by different people. But then, residents share the load for certain aspects that affect the entire community, such as swimming pools, landscaping, and children’s playgrounds.

For this reason, HOAs are formed to establish and enforce rules that everyone has to abide by. This is done to ensure the safety, well-being, and satisfaction of every homeowner as well as to keep the neighbourhood running smoothly. Associations are comprised of residents and presided by an elected board.

What about a property management company?

They are usually used to manage units being leased or rented out by businesses or individuals. As their main objective is to maintain the units, they handle any repair or maintenance requests from homeowners.

A property manager is a godsend for many a property investor. They don’t necessarily have to work with you as they may work only a few people within the neighbourhood. However, you can hire them to oversee any properties that belong to the HOA itself.

What are the major differences between them?

For an HOA, there are numerous benefits to getting property management help, but there are still some issues that you must handle on your own.

The HOA makes the rules

Associations establish the directives for the neighbourhood or group. These vary according to your needs, but it may include things like proper etiquette within the common spaces or the standards for aesthetics.

There may be rules for elements like: the colour of the unit, the landscaping around it, the decorations allowed, the curfew hours, the owning of pets, and the usage of common spaces.

The HOA carries out the rules

You typically have to implement regulations that managers are unable to. When tenants or properties make violations, you may apply liens on units or ask people to pay a fine. While you have no control over their movements, it’s your job to inform them of the bylaws.

A manager helps you to communicate and oversee the homeowners. While they can’t impose penalties, they may evaluate lease agreements to see if fees for any violations are fair. Doing so gives them some flexibility while supporting you in enforcing the rules.

The HOA doesn’t manage properties

You have to provide the rules that every property in the community has to follow, but you aren’t responsible for maintaining the unit. You must find someone who knows your objectives as a group and those of the board.

Property managers are in-charge of: searching for and evaluating tenants; checking the units often; getting the fines and the rent; and arranging for maintenance and repair services.

The HOA handles common spaces

While this varies according to the type of association, the manager usually doesn’t handle common spaces. Hiking trails, function halls, pools, and playgrounds are under your jurisdiction as the HOA instead.

Property management, as the name states, is focused on the units themselves. It’s involves providing a quality home within the local laws while also adhering to the association rules. Managers think about what will encourage people to rent or buy these properties.

The HOA cares about community interests

Your main concern is to ensure that every resident is going to fit in the neighbourhood. Mostly, your board members are fine with owners leasing out their units as long as the tenants follow the guidelines and keep the peace.

The manager works in the best interests of the owner over those of others. They check that tenants maintain the value of the property and allow for regular inspections.

Are you looking for an HOA property manager?

Property management exists to assist homeowners’ associations with managing their administrative tasks and to advise board members about topics that they may lack knowledge in. They are a worthwhile addition to HOAs that are aiming for growth in the number of their residents.

The best news is that they don’t have to be within the same city or even country as you. We at Remote Workmate encourage you to get a virtual HOA manager for your needs. Have a look at our talent pool for candidates who you believe qualify for the role.