Homeowners Association(HOA) is a unit for the maintenance of a community or multiple-unit building. The association is held by people volunteering from the community forming the board members. However, maintaining society as a whole needs more than volunteering and more professional guidance. This is where HOA management companies fit into the picture.
HOA vs. HOA management companies
HOA is accountable for the upkeep of the community and needs to manage the nitty-gritty of rules. Usually, every HOA has its own rules and regulations that every resident of the community must abide by. These rules allow the community members to dwell in a healthy environment with communal relations. To support HOA, the residents pay HOA fees. The fees aid in the development and maintenance of necessities that the residents share. Some everyday maintenance tasks involve swimming pools, lifts, security, upscaling, and damage repairs. Since the board members of HOA are volunteers themselves, financial ledger and operational upkeep are too much to handle, and they reach out to management companies.
HOA management companies are fiduciary institutions that operate on behalf of the board members. The management companies act as the agents for HOA and carry out their commands. The notices received by residents are actually from the board members, whereas management companies are the only mode of communication. The crucial point here is that management companies cannot initiate any task on their own. It is the board members who layout the functions, and management companies act on them. Hence, HOA handles the ‘what’ while the management company operates the ‘how.’
Building Healthy Community
HOA board members are engrossed in their everyday life and have little time to plan community events. Consequently, there is too much on their plate. Roping in management companies into community maintenance takes the load off of the board members while still keeping things in control. There are many ways in which a management company not only keeps things running but also helps in healthy community building.
- Administration
Administration activities involve scheduling board meetings, reporting, and budgeting. These are crucial to keep board members up-to-date with the expenses and activities being carried out.
- Accounting
This involves vendor management and financial accounting. Since all the activity expenses come from the fees paid by the community members themselves, both HOA and HOA management companies are accountable for how it’s spent.
- Site Management
This deals with the maintenance of the property by inspection and violation reporting. It also includes upgrading additional facilities like a pool, gym, lawn, etc.
- Community Building
The management companies conduct community events and gatherings to build friendly relations and welcome new residents to the community.
Conclusion
HOA and management companies working in sync have many benefits for the residents.
- The property value is retained or appreciated.
- High-quality tenants with minor property damage and healthy neighborhood relations.
- Minimal legal complications
- Minimal repair and maintenance price
- Safe and secure surroundings
- Prompt issue handling
With such benefits, it is advisable to seek professional guidance from management companies to run a successful HOA.