The value of a Home Owners Association (HOA) depends on how it is managed. In some cases, an HOA hires a company that specializes in HOA management to oversee the financial, administrative, and maintenance services of the community – an arrangement that allows board members to spend more time dialoguing with the community. If your HOA is considering hiring a company to assist it with community management, and you are curious about what the company will do, below are examples of homeowner association services that HOA management companies commonly provide:
Financial Management
Many board members lack the time and training to manage their community’s finances effectively. HOA management companies solve this problem by dedicating trained financial experts to managing the finances – a process that could involve the following services, among others:
- Addressing homeowner billing inquiries
- Collecting monthly assessment fees
- Collecting late assessment fees
- Managing vendor accounts
- Preparing and submitting the annual budget
- Handling of yearly taxes
Having an HOA management company handle your community’s finances brings two intangible benefits: it places board members above suspicion, and it removes the prospect of the board members collecting late fees from – or imposing liens on – the property of their neighbors.
Administrative Management
Depending on the number of members it has and the number of services it retains, an HOA could require the same administrative resources as a business – a scenario that most boards aren’t prepared to handle. An HOA management company can perform the following administrative management services, among others:
- Recording the minutes of board meetings
- Organizing and maintaining all HOA files
- Obtaining bids for requested services
- Preparing and distributing important information to residents
- Hiring and supervising temporary employees
- Coordinating neighborhood review processes
As they perform administrative homeowner association services, HOA management companies are active in the community: attending meetings, helping to perform assessments, and dialoging with board members about community development.
Maintenance Management
Property maintenance is a key to sustaining a community’s real estate value and social attractiveness. An HOA management company can perform the following maintenance management services, among others:
- Conducting property and building inspections
- Answering emergency calls from residents 24/7
- Administering payroll to maintenance employees
- Preparing work orders for maintenance jobs
- Awarding contracts for projects after board approval
- Monitoring the progress and quality of maintenance projects
Without the assistance of an HOA management company, a community can lack critical maintenance services that are necessary for neighborhood upkeep, as well as a way to monitor the services it has.
Conclusion
Not all HOAs retain an HOA management company, but those that do typically experience smoother, more efficient, and better-organized community management. They also experience a higher degree of community development, because the company has the resources, time, and training that make the difference. If your HOA retains a company that provides association management services, chances are that your community will benefit significantly in terms of its finances, administrative functions, and maintenance upkeep.