What’s a Homeowners Association (HOA) management company? It’s a question you might ask if you live in a gated neighborhood or if you’re a property owner worrying about how best to manage your property.
An HOA is an organization that creates and enforces rules in residential communities. The residents of a community are often the ones who establish the association and choose the board members.
On the other hand, an HOA management company works hand in hand with the HOA to manage the neighborhood. HOA board members often lack the expertise and time to manage the neighborhoods actively. Therefore, they’ll hire an HOA management company for assistance.
Details About Responsibilities Of HOA Management Companies
What are the responsibilities of HOA management companies? Here’s what they do:
Enforcement Of Rules
Most neighborhoods and communities have adopted a particular way of life by enforcing rules. It is reflected in their values, beliefs, and principles. Rules make it easier for residents to know and adhere to them.
The best HOA management company in Charlotte NC will aid in rule enforcement. They’ll do the following:
- Send notices to those defaulting on the rules
- Write violation reports
- Send newsletters with rules to the residents
- Follow up on the violation notices sent
All these tasks will contribute to rule enforcement in the neighborhood.
HOAs also engage in maintenance practices besides making and enforcing rules. These practices touch on the lawn, swimming pool, and gym maintenance, which requires finances. Therefore, accounting is an important aspect of property management.
As previously stated, most HOA board members aren’t experts in accounting. It’s where the HOA management company comes in. They’ll help with the following:
- Budget creation for maintenance activities and neighborhood projects
- Bank account reconciliation
- Ledger reconciliation
- Preparation of financial reports and documents
These practices ensure the proper usage of community funds and bring about accountability.
Residents of communities with homeowner associations are often financially responsible for maintenance activities. Based on these, the residents pay monthly or annual fees for these services. Also, should there be any development projects like road repair, residents will contribute towards the realization of the project.
Collecting these bills can be challenging, which is where the services of a management company are needed. The company will do the following:
- Send invoices to residents for payments
- Give notices for late payment
- Seek legal action in times of nonpayment
- Get familiar with all laws surrounding payment collection and adhere accordingly
- Identify and follow up on defaulting accounts
- Provide efficient bill-collecting systems like payment portals
Bill collection services will ensure that everyone contributes to the neighborhood’s well-being.
The maintenance of neighborhoods depends on the type and number of amenities. A neighborhood might have a gym, clubhouse, swimming pool, and lawn. Each of these requires different expertise to maintain. Therefore, vendors are essential partners to HOAs.
The management company will do the following regarding vendors:
- Vet them for the job
- Hire and train them where necessary
- Draft and implement vendor contracts
- Negotiate prices for affordable services
- Act as the point of contact with the vendors
All in all, they’ll work with qualified vendors who’ll ensure quality maintenance services.
It’s said that the best type of management involves both office and fieldwork. Office work mainly entails formulating policies and administration. On the other hand, fieldwork entails ensuring the implementation of the policies.
As previously stated, there’s a likelihood of HOA board members lacking time to manage the neighborhood actively. Therefore, the management company will handle the fieldwork aspect of community management.
The site management will involve the following:
- Monitoring daily neighborhood activity
- Managing trash
- Addressing maintenance requests
- Inspecting maintenance work done
- Identifying bottlenecks on-site hindering neighborhood well-being
Site management ensures everything is running according to plan, ensuring efficiency.
Point Of Communication
Contacting the HOA board of directors can be challenging, especially for the residents. It’s said that the human touch is important in any business setting. The same concept can apply to HOA management companies.
It’s important for there to be a connection among the company, board of directors, and residents. The point of contact among the three is the HOA management company. Residents will complain and request repairs and replacements through the management company. The board of directors will also communicate with the residents through the company.
From the discussion, homeowner association management companies are great additions to communities and neighborhoods. The discussion highlights their responsibilities, which also depicts how you stand to benefit as a community. With this insight, you can decide whether to hire such a management company or live in an area with these services.