Many often confuse the HOA manager with the condo manager or the property manager. While these three terms may sound alike, they are not the same. It is important to understand how these roles differ. In doing so, board members can hire the right people.
What is an HOA Manager?
An HOA manager works directly for the homeowners association, typically under the direction of the board of directors. Their primary role is to carry out the policies and goals of the board. They are there to ensure the community runs efficiently.
The HOA manager keeps the community functioning behind the scenes, essentially helping the board fulfill its duties. They reduce the burden on volunteer board members, ensure projects stay on track, and help maintain property values. While the HOA board hires the manager, the manager serves both the board and the community as a whole.
HOA Manager vs Condo Manager
Although HOAs and condominiums are both community associations, they have some differences when it comes to operations and building structure. After all, condo associations tend to have more complex maintenance needs.
A condo manager works within a condominium association. They focus more on operational maintenance and building management. They often deal with multi-unit buildings, elevators, shared HVAC systems, and structural maintenance. The role of the condo manager encompasses many of the responsibilities of an HOA manager, but with a greater emphasis on physical assets and building systems.
While both types of managers report to a board, the HOA manager typically works in a single-family or townhome community with extensive amenities such as parks, clubhouses, or private roads. Condo managers, on the other hand, work within shared buildings.
It is not uncommon for an HOA manager to also have experience working for condominiums and vice versa. Managers typically have varied clients and portfolios, ranging from condominiums to townhomes to single-family neighborhoods.
HOA Manager vs Property Manager
Another term people often confuse the HOA manager with is property manager or HOA property manager. While some use them interchangeably, they are not the same.
A property manager usually represents landlords or rental property owners, whereas an HOA manager represents a community of homeowners. The job of a property manager focuses more on leasing, rent collection, tenant screening, and rental unit turnover. They also manage repairs, maintenance, and even evictions.
HOA property managers can oversee single-family homes, apartment complexes, or commercial units. They don’t handle board elections, enforce community rules, or manage community-wide amenities, which are the responsibilities of an HOA manager.
Some HOA management companies offer both association management and property management, while most others specialize in one or the other. The companies that provide both services tend to be larger firms with a more diverse portfolio of clientele.
What Does an HOA Manager Do?
An HOA manager assumes several key responsibilities, although the specifics can vary depending on the management agreement with the community.
That said, in general, an HOA manager handles dues collection and financial management, rule enforcement, maintenance, vendor coordination, homeowner communication, administrative support, board education, and legal compliance.
Here is a more thorough breakdown of each responsibility.
1. Dues Collection and Financial Management
The HOA manager handles the collection of homeowner dues and assessments. They also support the board in preparing annual budgets, managing day-to-day expenses, and maintaining reserve accounts. In addition to these services, they assist with tax preparation, facilitate yearly audits, and provide regular financial reports to keep the board informed.
2. Rule Enforcement
Managers usually enforce the association’s rules and regulations, including architectural review procedures. They review and process architectural requests if there is no Architectural Review Committee.
In terms of violations, HOA managers assist in sending written notices and organizing disciplinary hearings. In Texas, both these things are required as per Sections 209.006 and 209.007. If the board decides to impose a penalty, the manager will implement the board’s decision.
3. Maintenance
The manager is responsible for managing the maintenance and repairs of common areas. They schedule routine inspections, delegate preventive maintenance, and hire vendors for repairs. They also process work orders and respond to service requests from homeowners.
4. Vendor Coordination
The manager finds, schedules, and oversees third-party vendors as well. They solicit bids, negotiate contracts, and interview candidates. They also monitor the performance of vendors and ensure all deliverables are completed on time. This includes services like trash pickup, security, landscaping, and general repairs.
5. Homeowner Communication
HOA managers serve as the main point of contact for residents. They answer questions, provide updates, and assist in resolving complaints. Board members will no longer need to be available 24/7, as most management services also offer emergency services.
6. Administrative Support
Behind the scenes, HOA managers handle paperwork and records. This includes maintaining governing documents, organizing meeting agendas and minutes, managing correspondence, and preparing disclosure packages for home sales. Most management companies have a team of administrative personnel responsible for supporting managers with their tasks.
7. Board Education
Many HOA boards lack the expertise and experience necessary for successful management. Fortunately, an HOA manager can provide ongoing guidance and recommendations to the board. This can include training on best practices, reminders about upcoming deadlines, and resources for better governance. They can also help with board transitions.
Of course, this does not mean the HOA manager gets a position on the board or essentially serves as a board member. The manager is there to assist in the operations of the community. They don’t get any final decision-making authority, which is reserved for the HOA board.
8. Legal Compliance
HOA managers can help ensure that the community operates within the law. They assist with interpreting and amending governing documents, filing the required legal paperwork, and tracking compliance with the law. If necessary, they will also work with the association’s attorney to address complex legal matters.
Independent HOA Manager vs HOA Management Company
Many self-managed associations rely solely on their board members for continued operations. Yet, board members aren’t always equipped to handle the ins and outs of HOA management. Managing a community takes financial, legal, and operational know-how.
Moreover, some board members lack sufficient time to dedicate to community management. This often results in delayed actions and decisions. Professionally managed HOAs, on the other hand, can rely on an experienced and licensed expert for guidance.
When deciding on HOA management services, board members have two options to consider: an independent HOA manager or an HOA management company.
Independent HOA Manager
An independent manager works as a solo professional or small business. This setup is usually ideal for small communities with simple needs. They may offer a more personalized approach and lower cost.
On the downside, they tend to have limited resources or availability. If the manager takes a vacation or falls ill, the HOA may have to deal with interrupted services. Plus, if the manager has multiple clients, the HOA might not always take priority.
HOA Management Company
A management company provides a full team of professionals, including administrative staff, accountants, and a legal department. This option is best for larger or more complex communities.
Companies also often offer specialized software and a dedicated point of contact. With a company, a community usually gets assigned its own HOA manager, complete with a support staff.
Of course, HOA management companies tend to cost more compared to an independent manager. Boards must determine their needs and weigh their options carefully before deciding on the best course of action.
In the End
An HOA manager fulfills many roles, and they make life easier for board members. It is essential to note that they differ from condominium managers and property managers. That way, HOA boards can refine their selection process and hire the right person or company for the job.
Preferred Association Management Company offers exceptional HOA management services to communities in Central Texas. Call us today at 512-918-8100 or contact us online to learn more!
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