Running a homeowners association can be tiring. While many communities choose to hire an HOA manager to handle daily responsibilities, others seem to shy away from hiring a professional because of the associated cost. Should your community hire one?
What Does an HOA Manager Do?
The responsibilities of an HOA manager are largely the same as those of the HOA board, but without all the decision-making authority the board has. They are essentially the board’s hands and feet, so the directors can focus on more important matters.
Typically, an HOA manager is responsible for taking care of daily operations. They are also in charge of overseeing some of the community’s most important projects. Here are the main responsibilities of an HOA manager.
- Budget and Financial Report Preparation. Managers help the board create the annual budget and prepare financial reports required to keep the HOA board and members updated on its financial status.
- Collection and Financial Management. Managers collect fees and manage the community’s finances to ensure the HOA is financially stable.
- Vendor Bids and Management. Managers collect vendor bids and manage vendor relationships to ensure they deliver the highest-quality work.
- Rule Enforcement. Managers oversee violation inspections and handle rule enforcement by following community enforcement policies.
- Resident Communication. Managers communicate with the residents, address their issues, and resolve disputes.
- Point of Contact. Managers liaise between the board and community residents to provide feedback and keep all parties informed on HOA matters.
- Meeting Management. Managers prepare agendas, take minutes, and assist the board with conducting meetings.
- Project Management. Managers are vital in overseeing and managing special projects like capital improvements.
- Legal Compliance. Managers connect the board with legal experts who can advise them on all legal matters to ensure legal compliance.
- Insurance Management. Managers can oversee the HOA’s insurance policies and make sure the community has ample coverage.
Benefits of Hiring an HOA Manager
What are the benefits of working with HOA management companies and hiring a professional manager? Here are just a few ways your community can benefit.
1. Financial Expertise
HOA managers and their management companies are experts at accounting and financial management. Unlike most board members, they have the skills to keep the association financially healthy. They can also prepare financial reports and statements according to the generally accepted accounting principles (GAAP).
2. Consistent Rule Enforcement
HOA board members are also community residents, so they need help to enforce the rules consistently. Even if they do, some residents may question their integrity if they think the board is showing favoritism.
To avoid any inconsistent or selective enforcement allegations, the board can hire an HOA manager to enforce the rules. HOA managers are unbiased because they don’t live in the community and don’t have a stake in the rules. This keeps the board in check and ensures the community residents that the rules are being enforced consistently.
3. Member Engagement
While the elected board has a fiduciary responsibility to the community, it cannot always be on top of communicating community matters. After all, it has its own lives and careers to consider.
A dedicated manager will resolve this issue and communicate the HOA’s affairs with the residents. They are also always available to respond to resident concerns or questions, receive feedback, and address their problems on time.
4. Management Experience
A professional manager will have years of experience managing different kinds of communities. With their expertise, they can more easily navigate community challenges. This can include everything from creating an effective social media policy to handling an unexpected lawsuit.
5. Accountability
Community members might be concerned about putting all their faith in the HOA board. After all, board members in other communities have taken advantage of their positions to embezzle community funds.
With a third-party HOA manager, the residents can feel more at ease knowing someone else is keeping the board accountable. The manager can double-check the community’s funds and ensure the HOA’s money is properly used.
6. Better Maintenance
An on-site manager can ensure the common areas are always clean and well-kept. They can even conduct inspections and catch issues the board might miss. Moreover, the manager or management company often has a network of vendors they trust to do various maintenance jobs. With these connections, the community can easily hire a contractor to maintain the common areas.
7. Legal Expertise
Homeowners associations are subject to several federal and state laws. While the board’s responsible for ensuring compliance, a little outside help can go a long way. HOA managers are often well-versed in state law and can advise the board on legal issues. They are also updated on any legislative changes that might affect the community.
8. Commitment to the Community
HOA managers are paid professionals and are committed to the communities they serve. Their performance is reflected in their HOA management company and can affect their future sales. Thus, they are committed to working in the community’s best interest and helping the HOA succeed.
When Should You Hire an HOA Manager?
Homeowners associations can be self-managed or managed by an HOA management company. When should a community hire a dedicated manager? There are several considerations to keep in mind.
- Lack of Expertise. A board of directors without expertise in community management, financial management, accounting, law, or vendor management can benefit greatly from an HOA manager.
- Lack of Time. If the HOA board needs more time to fulfill all their responsibilities, they should consider professional management.
- Large Community. Larger communities with numerous residents and common areas have more things and people to manage, which requires more manpower.
- Inconsistent Communication. HOAs with communication issues may need the help of a community manager to ensure everyone stays well-informed.
- Stagnation. Communities seeking growth can hire an HOA manager to update policies, create social events, and initiate capital improvement projects to boost property value and motivate the residents.
Ensuring Community Success
Homeowners associations can sometimes thrive independently, but hiring an HOA manager is a good way to ensure success while keeping the board’s tasks manageable. Hiring a competent manager is key, so work with a reputable company before signing a contract.
Do you need a trustworthy HOA manager? 88 Doors has a team of professionals with years of experience in the industry. Contact us online or call us today at (512) 348-8821 to request a quotation!