HOA property managers are talented professionals who possess a variety of skills. From responding to owner emails, to assessing expenses, they do a lot for their clients.
While carrying out their duties, property managers act as agents of the HOA board. They take on day-to-day activities so that the board has more time to focus on long-term goals and projects. Together, boards and property management companies can resolve issues, maintain or improve property values, and keep harmony within the community.
But, just how much should property management companies be expected to do? It depends on what’s included in the contract.
Table of contents
- Board vs. property management responsibilities
- 10 HOA property management responsibilities
- 3 things HOA managers are not responsible for
Board vs. property management responsibilities
The specific roles of a property manager will vary depending on the needs and goals of the HOA. Managers are often paid to enforce rules, assist with administrative tasks and prepare budgets and other HOA materials, but they may be required to do more or less, depending on what the client wants.
Property management contracts or agreements will clarify each party’s roles, expectations, and obligations. This contract, signed before the management team starts working for the client, also includes details about fees, insurance, contract termination, and more. You can view a sample contract by clicking here.
Regardless of how involved the management team is, it is still up to the board to ensure the community is operating well. That’s because board members have a fiduciary duty to act in the best interest of the community. Board members are legally required to be responsible and act in good faith. Part of that requirement is ensuring that the staff they hire are doing their jobs properly. So, if a property management team is not fulfilling requirements laid out in the agreement, it’s up to the board to remedy that issue.
10. HOA property management responsibilities
The list below is not exhaustive (there are dozens of little things that HOA managers do that go unnoticed) but it will give you an idea of some of the most common HOA property management responsibilities.
1. Collecting and managing HOA dues
Board members don’t have time to chase owners for outstanding dues, which is why they ask property managers to do it. The HOA counts on every penny that is owed to it, and property managers understand this. As such, they closely follow the HOA’s collection policy and may impose late fees, offer payment plans, and even initiate foreclosure proceedings if that is an option.
2. Owner relations
Most companies are asked to help answer questions or fulfill requests from HOA owners. This takes up a lot of time, but it is key to keeping owners, happy and informed. When members feel like they are being ignored, they are more likely to disengage. That can lead to lower meeting turnouts, which makes it harder to reach quorum.
When disputes arise, managers work to find amicable solutions so that problems don’t escalate. They also try to improve access to information. This may be achieved by introducing HOA management software such as Condo Control, an HOA website, or a similar online platform.
3. Rule enforcement
This is probably one of management’s least favorite tasks, but rule enforcement is key to keeping a safe and happy community. Rules help to uphold a certain quality of life, the value of homes, and the aesthetics of the community.
If there were no consequences for breaking rules, then owners would have little reason to follow them. Fines, loss of privileges and other penalties help to deter owners from breaking community rules.
In addition to investigating reports of rule violations, property managers will perform frequent inspections to ensure owners are complying with HOA requirements.
4. Accounting and financial services
Most HOA management companies will take on accounting and financial responsibilities. In fact, some HOA communities hire a company solely for accounting matters. Managers will look after bookkeeping, budget planning, and financial reporting. However, it should still be the board’s job to cut checks and conduct/review audits.
Good accounting practices are critical to the success of every HOA, which is why boards don’t mind paying someone else to assist with this tedious but important task.
5. Assisting with legal issues
HOA managers are not lawyers, but they often have experience sorting out legal matters. They may make suggestions to improve current processes or rules that could attract legal problems, handle tax reporting, assist with filing suits or enforcement of action, etc.
6. Staffing
The HOA manager is often responsible for staffing the HOA. While each community’s staffing needs will vary based on size and amenities, the positions can range from an entry-level front desk attendant to a chief engineer.
7. Maintenance
Managers will keep detailed maintenance logs for systems and amenities, and schedule inspections as needed. Preventive maintenance is one way managers can prolong the life of expensive equipment and help prevent small problems from becoming big issues. This practice also saves the HOA money in the long run.
8. Project management
When it comes to maintenance or repair projects, HOA management companies have preferred vendors who they can recommend to the association. Since they have a good working relationship, the vendors will often provide their services at a discounted rate.
As projects get underway, the manager stays on top of communications and relays important information to the board and to staff. The manager will help keep the work on budget, and on time.
9. Administrative assistance
HOA managers spend much of their time assisting with admin tasks like maintaining records and planning out the logistics of meetings and events. Keep in mind that they are not secretaries and should not be spending all of their time doing paperwork.
10. Customized services
Some HOAs will hire a company based on the specialized services it can provide. Staff may be asked to plan events, prepare a property improvement plan, or even help educate the board. HOAs should expect to pay additional fees for these special services.
3 things HOA managers are not responsible for
HOAs can ask a property manager to do almost anything within reason, but that doesn’t mean they will agree to every task. Furthermore, there are some things that HOA managers should not be asked to do.
1. Fixing a financially troubled HOA
HOA property managers are great at helping communities improve their financial health, but they are not magicians. If the association is in serious financial trouble, then it should hire a consultant, accountant and/or lawyer to help it get back on track.
2. Getting board members re-elected
It’s true that the board will rely on the manager more than individual owners, but they cannot use the manager for personal gains.
HOA property managers are not being paid to advocate for or against people. Refrain from asking them to help you (or someone else) get re-elected.
3. Making everyone happy
Board members know that it is impossible to make everyone in the community happy. Unfortunately, property managers can’t do that either. Just like the board, management should be performing work that will benefit the community as a whole. Sometimes, that means fining an owner to protect the peace and safety of others, or issuing a late fee after someone has failed to pay dues for two months in a row.
In order to maintain operations and property values, HOAs cannot prioritize individual interests or wants. The community must work together to achieve shared goals, even if some members don’t fully support those goals.