Homeownership is a rite of passage for many of us, but that doesn’t mean we all want to take on every responsibility that comes with it. That’s just one reason that neighborhoods with HOAs are becoming more popular. In fact, Americans now have a one-in-five chance of buying a home that’s part of a homeowners association.
HOAs typically enforce neighborhood rules, but they can provide a number of perks to tenants. What many prospective buyers — and even current residents — fail to realize is that the HOA may not directly carry out certain duties and ensuring everything runs smoothly. That’s often a job for property management services. While HOAs and property management services do share many of the same goals, they don’t always share the same functions. In today’s post, we’ll talk about this interesting facet of real estate and which responsibilities HOA and HOA management services may take on.
HOAs are run by a volunteer board of directors. Those who serve on the board are elected by the homeowners within a given neighborhood. While the roles of a specific HOA will depend on local, state, and federal laws, these boards typically oversee the maintenance of shared services, common areas, and amenities. HOAs are also required to collect dues from homeowners, enforce and adopt regulations, hire vendors to handle provided services, and plan for expenses.
Homeowner Association Management Services
Here’s where this sector of real estate becomes a bit more complicated. Since those who serve on the HOA board do so on a volunteer basis, they may not have the time to devote to every responsibility. They may also lack the knowledge or the tools to execute these duties properly. It’s common practice for HOAs to work with a third-party residential property management company to ensure that their essential directives are carried out.
For example, an HOA management company can consult with the board, execute approved policies, keep track of accounting transactions, take charge of dues collection, fulfill vendor payment, and even act as the central point of contact for the HOA. An HOA management company might schedule and attend board meetings, enforce community regulations, respond to homeowner concerns, handle billing and delinquent accounts, initiate legal action, inspect potential rule violations, keep up-to-date on maintenance issues, ensure the completion of vendor maintenance tasks, estimate maintenance costs, provide monthly financial statements, offer long-term financial and budgeting guidance for the community, and much more. Essentially, if there’s anything that the HOA board isn’t able to handle, their management company will take over.
It’s important for HOA board members to realize that they don’t need to take on this massive responsibility by themselves. In addition, homeowners who have purchased real estate in an HOA-governed community need to know that their HOA management company can provide them with the resources they need to stay compliant with pertinent policies. An HOA management service can act as a priceless go-between, handling essential duties and providing easy contact between homeowners and HOAs.
If you feel your HOA needs help ensuring these tasks go smoothly and that policies are upheld, you could benefit from a management company. For more information on the services we provide and how we can improve your neighborhood, please contact us today.