When it comes to property management, the type of property being managed makes a big difference. Is it an apartment building with 75 individual units? Is it an association of 30 condominium units? In order to find the best management service for the needs of the property, you need to first engage the correct type of property manager. In property management, there are two primary types of managers: those who manage multifamily buildings, and those who manage condominium homeowner associations. Let's take a look at what each type of property manager does in more detail.
What Is A Homeowner Association (HOA) Manager?
The job of a HOA manager is to work with the Trustees of the building to carry out the day-to-day operations of the building. This includes common area maintenance, landscaping, janitorial, trash removal, vendor payments, utility payments, and managing the operational budget for the property. They are not responsible for servicing individual condominiums or units in the building. Their only responsibility is to the Trustees and common area systems and services.
A homeowner association manager reports and works with the Trustees to carry out their operational plan for the building. It is the Trustee's responsibility to ensure they are carrying out their fiduciary duty to all homeowners. To maintain the property's value, the property manager's responsibility is to carry out the direction of the Trustees. The HOA property manager takes care of the day-to-day operations so the Trustees can focus on goal planning and ensuring they are maintaining the value of the community.
So in short, an HOA property manager reports directly to the Trustees and carries out the Trustee's plan for the property. The Trustees, in turn, report directly to individual homeowners.
What is a Multifamily Property Manager?
A multifamily property manager is responsible to the owner of the property. That means, whoever owns the entire multifamily building, not the individual units or residents directly. The multifamily property manager's job is to assist the owner of the property in achieving their goal for their investment, whether that be maximizing their revenue or something else.
A multifamily property manager focuses primarily on the maintenance of the property and collecting rents. It is their fundamental responsibility to ensure the investment of the owner is properly managed.
Multifamily property managers have more interaction with individual unit residents in terms of fulfilling maintenance requests and payment collections than HOA property managers, however, their ultimate responsibility is to the owner of the property. It is their job to ensure the property is maintained and that the owner has what they need to see a return on their investment.
What To Look For
If you're looking for a new property management company for your building or homeowner association, ensuring you find the right company for your type of property is essential. Some property management companies service both multifamily and homeowner associations, some specialize in one or the other. If you opt for a company that services both, ensure you ask whether your particular manager will be working exclusively with HOAs or if they also work on multifamily buildings too. Both types of management have nuances that are unique to the property. Don't be afraid to ask plenty of questions to ensure you're getting the experience you need for your specific property or association. If you need a recommendation on where to start your search, check out our guide to the best HOA management companies in Boston and our guide to the best multifamily management companies in Boston.