Homeowners Association (HOA) Management Services
Homeowners associations (or HOAs) have a large amount of ongoing, daily needs from their Board of Directors. Running an HOA requires constant attention and care, which is where association management companies provide assistance. The purpose of the management company is to take over duties of the association, ranging from only financial to full on-site management of the HOA.
There are association management companies all over the United States that aid homeowners associations with their governing duties. Having a management company helps to keep the functions of the homeowners association running smoothly and involves many facets of management.
#1: The Staff
An association management company has trained staff who manage the HOA. The services can vary depending on the needs of the assocation, but a management company will employee people with experience in the areas needed. Management staff work closely with homeowners association board members to provide services to their communities.
The management team reports to and takes direction from the Board of Directors as needed. Rules and policies are not set by the management staff, but they simply follow the rules of the association.
The need for property maintenance is an inevitable part of homeownership, and one that management companies can also handle for associations. Staff can take care of processing work orders and emergency requests made on properties. The Board of Directors will determine what is necessary when maintenance arrangements need to be made, and the management company will handle those arrangements.
Management companies will also take on the role of working with vendors for the association, including meeting with the vendors, contractors, and/or homeowners on their property. Staff will help with assessing property for maintenance needs.
HOAs may employ a management company for handling the association finances, as well. Monthly financial statements can be prepared and distributed to the Board of Directors. Some other financial duties often provided by homeowners association management companies include:
- Printing and mailing statements to homeowners
- Opening and maintaining bank accounts as directed by the Board
- Reviewing and managing bills and expenditures made by the association
- Maintaining account ledgers and account histories for each homeowner
- Preparation of budgets, including reserve analysis and projections
- Handling the preparation and processing of IRS Form 1099s during tax season
These services are performed by a professional bookkeeper or accountant provided by the management company.
Management can handle secretarial duties for the association, such as sending out reminders to homeowners and handling any deliquency matters – including legal action, if required. Administrative duties may also include maintenance of the database for vendors, homeowners, and tenants, 24/7 service or extended office hours, and scheduling of Board meetings.
Basically, the company works as a secretary service to handle clerical work required by the association and prevents the paperwork (or online work) from piling up.
#5: Customer Service
Besides taking over duties of the Board such as financial reporting and handling of maintenance, management staff can fulfill the customer service needs of a homeowners association. They will have the experience and understanding of concerns homeowners commonly encounter, which provides a focus on customer service when answering calls, emails, or requests from members.
To service the Board of Directors, some management companies will also provide extra services like training for board members in the associations they manage.
Homeowners association management provides associations with the support needed to keep their homeowners happy, assist the Board of Directors, and keep the wheels turning. A professional management company will be able to provide the tools in running a successful homeowners association.