CHARLESGATE Blog » Latest Articles
Sep 26, 2022 CHARLESGATE

Everything You Need to Know About HOA Management

Effectively managing a community can be a difficult and intimidating task. Because of this, homeowner association (HOA) management is typically intended to handle corporate operations while balancing the local community's demands and aspirations. Homeowners associations frequently attempt to handle these duties without outside assistance, but for the best results and most effective management, HOAs turn to hiring an HOA property management company to keep their residences and communities running smoothly. 

Here’s a closer look at what HOA property management is, what property management companies do, and how HOA property management can benefit your community.

What is a Homeowner Association (HOA)?

Before we dive further into HOA management companies, it’s important to understand what an HOA does: HOAs are management institutions built into a planned neighborhood or condominium building. Typically, an HOA is designed to establish and enforce policies pertaining to the properties under its authority.

Generally, the HOA is made up of and managed by the neighborhood or condo building’s residents and all residents who live in homes included in the HOA have a paid membership that is a condition of purchasing that home. Volunteers from the neighborhood are sought for positions on the HOA’s board of directors, and these people manage all operations – everything from maintenance to financial responsibilities.

An HOA will always outline its policies in a document referred to as a Declaration of Covenants, Conditions, and Restrictions (CC&Rs). This document outlines the maintenance restrictions that each member has to adhere to. Rules and guidelines can include anything from the kind of landscaping or fencing permitted to the consequences of breaking HOA rules, and beyond.

On the other hand, HOA management describes the process of leading and overseeing a homeowners association on behalf of the community. The HOA board voluntarily performs this task. However, because maintaining a community can be onerous, they may seek the assistance of a professional third-party HOA management company to aid with their extensive list of duties.

What Are the Responsibilities of HOA Management Companies?

An HOA management company offers homeowners associations a variety of services. For instance, these organizations control how an HOA is run and how facilities and common areas are maintained. In a broad sense, HOA management corporations exist to relieve the stress of HOA board members by assisting them in carrying out their obligations under the following four sections:

Handling Account Receivables

A professional condo management company has the know-how to collect on delinquent accounts. Working with a condo management company will ensure you are up-to-date on state policies governing collections. It will also ensure that all the notices sent to delinquent owners comply with the stipulated policies.

More particularly, they can help you in:

  • Coordinating with the association's lawyer in case of legal actions.
  • Billing practices.
  • Sending overdue letters as directed by the board.
  • Updating and reporting delinquent accounts to the board.
  • Adhering to the board's guidelines when instituting legal actions to recover funds.

Administrative Duties

A condo management company provides HOAs with a well-versed property manager to serve as a residence’s main point of contact. Property managers and their teams are experts in community management, and navigate any potential issues – often before they even fully turn into a problem – via proactive problem-solving, preventative measures, excellent organization, and through, effective communication.

A condo management company will be able to:

  • Prepare a yearly budget based on your board's guidelines.
  • Effective scheduled board meeting.
  • Enforce the community's policies.
  • Have a timely reaction to homeowner inquiries.
  • Generate periodic management reports.

Property Management

Property management is among the essential roles of HOAs. Thus, a professional condo management firm must be familiar with the association's policies to enforce them uniformly. They will periodically conduct an on-site visit to:

  • Inspect maintenance issues and rules violations.
  • Ensure that all tasks, such as pool cleaning or lawn maintenance, are carried out in accordance with the terms of the contract.
  • Arrange different board-approved activities.

Financial Management

Handling community finances can be a challenging task for many reasons, but an HOA management company can help. With experienced accountants and property managers versed in coordinating finances for a residence, HOA management companies can help you:

  • Accurately approximate maintenance costs.
  • Periodically review community dues and assessment billing.
  • Manage the community's bank account.
  • Guide the community when it comes to long-term funding.
  • Provide timely financial statements.
  • Provide detailed record-keeping on all accounts payable and receivable.

How Can an HOA Management Company Help?

Condo association management companies have a wide variety of skills and knowledge to assist HOAs with various tasks.

Working with an experienced condo association management company can help your board in various ways. They provide HOAs with access to a wealth of resources and trusted expertise, which will simplify your job as a board member. Additionally, these corporations handle the time-consuming and complicated components of HOAs that even well-versed board members may struggle with, allowing extra stress-and-headache-free time to concentrate both on other aspects of the community, and their own lives.

Here are a few other ways an HOA management company can help:

  • Providing various learning opportunities and resources that enhance the management aspect of the business.
  • Improve your association's urgent and emergency responses, allowing peace of mind knowing the proper protocol is in place for any issue you may face.
  • Networking and utilizing connections with other vendors and specialists, such as lawyers, engineering teams, maintenance, finance, and more to assist as necessary.

Why Should I Hire an HOA Management Company?

Hiring a professional HOA management company is essential to the smooth operation of your residence community.

For example, HOA companies and your dedicated property managers

  • Ensure all homeowners are informed of updates, and support your community by establishing clear, simple-to-follow policies.
  • Bring knowledge of critical laws and regulations your community must abide by, such as compliance with the Fair Housing Act and other laws that govern how HOAs operate.
  • Eradicate prejudices or biases in rule and bylaw enforcement processes.
  • Are well-versed in association management, are experts in property management, and have access to condo association management software, all of which is advantageous to the seamless operation of your building.

These are just some of the benefits that outline why you should seek the services of a property manager from an HOA management company. CHARLESGATE is Boston's most comprehensive property management company designed to give you a better experience by maximizing your property's value. We work with you to advise on and manage the property and meet the unique requirements of your residences with an approach tailored to your needs.

 

Contact us today to learn more about CHARLESGATE property management’s services and philosophy and how we can benefit your community.

 

Published by CHARLESGATE September 26, 2022
CHARLESGATE