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:
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.
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.
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.
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.