Successfully managing a homeowners association (HOA) is a full-time job. Not only are you responsible for the business affairs of the corporations you manage, but you’re also responsible for the wants, needs, and happiness of several communities. More often than not, this level of responsibility is far greater than most HOA volunteers can handle. This is where outside support can be extremely useful. Furthermore, utilizing a homeowners association management company can ultimately be very beneficial.
To learn more about how HOA management companies can help lighten the load of HOA responsibilities, check out the rest of this blog.
HOA Vs. HOA Management Companies: What’s the Difference?
Many HOAs are made up of a volunteer board of directors. And, more often than not, these volunteers have full-time jobs of their own. In addition to full-time jobs, volunteers sometimes have family responsibilities and more. As a result, this means that sometimes the effective management of a community can become overwhelming.
Therefore, hiring and utilizing the expertise of a homeowners association management company can truly change the game for HOAs. But it’s important to understand the clear-cut responsibilities of each party. Ultimately, the goal of both is to effectively manage business operations and build a sense of community. But individual responsibilities differ. Here’s how:
The role of an HOA is dependent on federal, local, and state law, as per their governing documents. As mentioned, an HOA is run by a volunteer board of directors, but these people are elected by the group of homeowners.
An HOA is responsible for the overall maintenance of common areas and amenities within a homeowner’s community. They also fund shared services, such as trash collection. An HOA covers:
- The collection of dues
- Enforcing governing rules
- Saving for large expenses
- Covering ongoing community expenses
The HOA board of directors is responsible for overseeing all of these functions. Moreover, they make executive decisions and also hire vendors where necessary.
HOA Management Company Responsibilities
An HOA management company is, essentially, a third-party management firm. Furthermore, they assist with the large number of responsibilities covered by an HOA. In general, an HOA management company is simply responsible for:
- Guiding the HOA board of director on how to fulfill their duties
- They help to execute decisions and policies, which are approved by the HOA board of directors
- They help to document transactions of accounting, activities, and records of the HOA
In short, the HOA board of directors is completely in charge of making all decisions. However, an HOA management company serves as a point-of-contact for fulfilling all HOA duties.
6 Ways an HOA Management Company Can Help
Simply put, an HOA management company is responsible for carrying out all hands-on work when it comes to running an HOA and a happy community. Here are 6 key areas they focus on:
1. Administrative Tasks
Firstly, an HOA management company appoints an experienced manager to act as a main contact within the community. The HOA manager is also usually an expert in community management. They also have good experience in navigating all types of community situations. And, they are also skilled communicators. In addition to these many qualities, they understand how to manage a great HOA team.
Just some of the tasks they help coordinate include:
- The scheduling of board meetings
- Providing monthly reports
- Equally enforcing the rules of the community
They also guide the HOA board through yearly budget meetings and respond to all homeowner questions.
2. Management of Accounts Receivable
Next, an HOA management company also oversees the collection of dues. They are well-versed in collecting delinquent accounts, too. So, if you have difficult tenants who tend to fall behind on their dues, an HOA management company takes care of this.
They also keep up-to-date on all state laws about collections and delinquent accounts. Just some of their debt management duties include:
- Issuing delinquent notices
- Updating the board on delinquent accounts
They also help to start legal action when collecting dues, if needed.
3. Community Site Management
Thirdly, this is is a very important task for an HOA and is key to keeping the community happy. Further, it’s the priority of an HOA management company to oversee site management. And, it also helps keep the community in the best possible condition. Overall, this reduces the risk of homes decreasing in value over time.
Moreover, the HOA manager is very knowledgeable in the HOA’s rules of upkeep. They should also make regular on-site visits and inspections. Their tasks range from:
- Overseeing maintenance issues
- Inspection of rule violations
- The coordination of board-approved actions
Other than this, they also oversee general maintenance tasks. These include lawn care, pool cleaning, wall painting, and many other vendor-operated tasks.
4. Accounting Services
In addition, an HOA management company also oversees the reporting and handling of the HOA budget. However, this can be a complicated process. So, a management company certainly should provide the best professionals for the job. Furthermore, accounting services include:
- The management of community bank accounts
- Estimating maintenance costs
- Reviewing monthly billing and dues
In addition, they also provide detailed records of all accounts, create financial statements, and provide financial guidance to all HOA directors.
5. Building a Sense of Community
Next, another one of their most important tasks is to create a sense of togetherness in the community. Above all, enforcing rules and policies helps to enhance the value and pride within the community.
This is achieved with attention-to-detail to the physical aspects of the community, for instance. In addition, involving homeowners in all community relations where possible can help to build a sense of community.
6. Hosting Community Communications
Finally, an HOA management company is always on-hand for open lines of communication within the community. Homeowners are also more than welcome to ask for information regarding rules and regulations at any time. For instance, community members have access to information regarding:
- Architectural review changes
- The declaration of Covenants, Conditions, Restrictions, and Easements (CC&Rs)
- Future planning documents, and more
In short, this is a very important job. That is to say, that it ensures the community lives with a sense of transparency and authenticity.
Manage Your Community Better with Silvercreek Association Management
Certainly, utilizing a homeowners association management company can ultimately help you be successful at managing your HOA community.
At Silvercreek Association, we are an HOA management company that believes in managing communities with its people at the forefront of our minds. If you’re looking for top-notch community management services, we are your go-to team.