What Do HOA Management Companies Do?
A homeowner’s association, HOA, is a governing body that manages a community, overseeing a safe and desirable living environment. Since this work can involve many responsibilities, the HOA board may decide to employ the services of HOA management companies. These companies are third parties specializing in the everyday operations of communities. Here are some of the services an HOA management company can offer:
1. Billing and Collecting Dues
Residents in a community usually pay a monthly or annual fee to the HOA. These fees go toward shared amenities and resources. HOA management companies can handle billing and collecting dues from residents. This includes issuing invoices, setting up payment plans, managing accounts receivable, and collecting late payments. They may also provide financial services such as budgeting, financial reporting, and data analysis. Management companies have the experience and resources to handle these tasks for the HOA board, allowing them to focus on other aspects of the association.
2. Handling Repair Requests From Residents
When residents need home repairs, they often call the HOA for help. An HOA management company can liaise between the board and residents, responding to repair requests and coordinating services. This may include confirming the validity of requests, scheduling repairs and inspections, ordering supplies, tracking progress, and confirming completion. Some management companies have established relationships with reliable contractors who provide quality services at reasonable prices.
3. Managing Shared Amenities
Many living communities have shared amenities such as swimming pools, fitness centers, playgrounds, and other recreational areas. These areas require appropriate management for the safety and enjoyment of residents. An HOA management company can take on this role, coordinating with outside vendors or managing in-house staff to maintain these shared spaces. The management company can coordinate cleaning, repairs, and proper usage guidelines for the amenities. They can also arrange events and activities within these shared spaces to encourage engagement between community members.
4. Enforcing Rules and Regulations
HOAs establish rules and regulations to help maintain a safe living environment with an acceptable quality of life. This includes parking rules, noise regulations, pet policies, and more. HOA management companies can take the lead in enforcing these rules. They can issue fines when necessary and remind residents of appropriate behavior. Having a third-party management company handle rule enforcement helps reduce conflicts and misunderstandings between board members and residents. Since they are not part of the HOA, management companies can remain neutral and provide a more objective perspective.
5. Evaluating and Mitigating Risks
Every community association is exposed to potential risks, from liability issues to member disagreements. The HOA board may not have the time or resources to mitigate all potential risks properly. HOA management companies can apply their expertise and resources to protect the association from potential risks. They can assess possible risks and train members on management policies. These companies can also provide insurance options for the long-term health of the association and the protection of members’ investments.
6. Promoting Better Communication
A well-run HOA has open and transparent lines of communication between the board members, residents, and other stakeholders. These communication channels can form the basis of trust and understanding within the community. An HOA management company can help facilitate this communication by acting as a centralized information hub. They can schedule regular meetings, circulate newsletters and updates, create online portals for communication, manage phone support systems, and more.
7. Handling Legal Issues
HOAs are subject to various federal, state, and local laws and regulations. The board must be aware of potential legal issues and know how to handle them appropriately. HOA management companies have the expertise to handle legal matters such as contract reviews and disputes. They can advise board members on protecting member interests, resolving grievances, and interpreting governing documents. A reliable management company can provide legal advice to help the association stay compliant and protect the community.
Find HOA Management Companies in Your Area
A reliable and experienced HOA management company can improve the efficiency of your association. It can provide the expertise and resources to manage various aspects of the community, from shared amenities to billing to legal issues. Search for HOA management companies in your area to start helping your association become more organized and successful.