Homeowners association management is integral to the continued operation of communities. While some associations rely solely on their board members, many others turn to professional management services.
What is Homeowners Association Management?
Homeowners association management, or HOA management for short, is governing and overseeing a planned community’s operations. It applies to all types of community associations, including HOAs and condominiums.
To better understand HOA management, it is important to understand board members’ role. Homeowners associations are led by a group of directors known as the HOA board. These directors are responsible for managing the community’s operations and ensuring that property values remain high.
Board members don’t hold on to their posts indefinitely. In every community, elections take place annually. Volunteers from the community are nominated and elected through a vote.
The Challenges of a Self-Managed HOA Board
The main problem with a self-managed community is that its board members are volunteer homeowners. They don’t necessarily have the right educational background, experience, or training to run an association.
Some associations are fortunate enough to have board members who work in real estate, law firms, and corporations. But, many others simply have to rely on homeowners willing to serve on the HOA board. This is where a gap exists in homeowners association management.
In addition to a lack of expertise, board members don’t always have adequate time to devote to running a community. Remember, board members are homeowners, too. They are not paid for their time. This means that board members often have other responsibilities—professional and personal—outside of the association.
What Homeowners Association Management Companies Do
An HOA management company has a lot to offer, especially to self-managed communities. These companies specialize in assisting HOA boards to run community associations, handling all the day-to-day operations that would otherwise be tedious.
Here are the homeowner association management services a professional company can provide.
1. Financial Management
Arguably the most challenging aspect of HOA management is accounting and budgeting. Since HOAs deal with money – and thousands of it – board members must know how to manage finances.
An HOA management company can help with a number of financial management tasks, such as:
- Planning and monitoring the annual budget
- Collecting regular dues and lowering delinquency rates
- Tracking cash flow
- Handling disbursements and deposits
- Paying bills and processing invoices
- Preparing monthly, quarterly, and annual financial statements
- Filing tax returns
For some HOAs, a management company can even facilitate a reserve study and manage their reserves. Texas law does not require associations to maintain a reserve fund, but board members should also check their CC&Rs and bylaws to confirm whether they contain such a requirement.
2. Maintenance and Repairs
Homeowners associations must maintain common areas, elements, and amenities regularly. This includes scheduling cleaning, performing preventive maintenance, and implementing repair projects.
An HOA management company can also help with this. Management companies can coordinate with vendors and supervise the maintenance of common areas. With professional assistance, HOA boards won’t have to worry about staying on schedule.
3. Vendor Coordination
An HOA management company can assist with the vendor selection process. This includes soliciting bids from vendors, going through interviews, participating in negotiations, and advising the board on decisions. Management companies also often have an established network of pre-vetted vendors that HOAs can access.
The work doesn’t stop there. An HOA management company is also responsible for maintaining vendor relationships and monitoring performance. This is particularly helpful if a vendor isn’t fulfilling its obligations or delivering quality services.
4. Rule Enforcement
All homeowners associations have rules that residents must follow. If a resident violates a rule, they can face a number of potential consequences. Without an HOA management company, the board must facilitate enforcement on its own.
Board members can delegate rule enforcement by hiring a professional company. The management company can conduct regular inspections to identify violations, send violation notices, and confirm remedies. The management company can also organize disciplinary hearings, oversee appeals, and carry out penalties.
5. Conflict Resolution
Conflicts are bound to arise in an HOA community. When they do, the HOA board must step in and resolve the dispute.
Fortunately, an HOA management company can also assist with this. The company can implement conflict resolution strategies and help parties reach a compromise using dispute resolution methods such as negotiation, mediation, and arbitration.
This ensures that the community remains a harmonious and safe place to live. It also minimizes lawsuits by encouraging the resolution of disputes at the HOA level.
6. Homeowner Communication
An HOA management company can take over homeowner communication – fielding concerns and answering questions. This also includes sending notices, distributing newsletters, and disseminating information using various communication channels.
Many companies also offer 24/7 emergency support, so board members can say goodbye to calls from homeowners in the middle of the night.
7. Legal Compliance
Complying with legal requirements can be challenging for self-managed boards. An HOA management company can help ensure the association complies with all laws and regulations, including the Texas Property Code.
Additionally, the HOA management company can assist in interpreting and amending the governing documents. If the board wishes to pass a new policy or resolution, the management company can help draft it and ensure it doesn’t conflict with existing laws or rules.
8. HOA Technology
Most HOA management companies use technology to their advantage, providing HOAs with their own website and owner portal. This makes it easier for homeowners and board members to access essential information, submit requests, and view their account statements.
9. Board Training
Lack of education is a chief concern for many HOA board members. Fortunately, many HOA management companies provide board training and education. Board members can attend seminars, take classes, and learn the best practices for managing their communities.
For Reliable HOA Management
Homeowners association management is no easy feat, but it doesn’t have to be difficult. Board members, particularly in self-managed communities, can hire a professional company to help with day-to-day operations.
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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