Many homeowners associations delegate management services to specialized HOA management companies. But, what exactly do HOA management companies do? Does an association need a management company to accomplish all these tasks? Here are the top 6 services a management company can provide and how your HOA can benefit.
Services HOA Management Companies Provide
Homeowners association management companies have many responsibilities. Here are some of the most useful HOA management services your association can benefit from.
1. Administrative Services
Board members are responsible for plenty of administrative duties. But, they don’t always have the time or expertise to do them. That’s where management companies can help. They provide communities with a seasoned manager who knows how to handle HOAs.
These experts can handle most of the administrative tasks of scheduling board meetings, preparing annual budgets, and enforcing rules. They also attend board meetings, take the minutes of the meeting, provide advice, and send meeting notices. In addition, these managers serve as the main point of contact for homeowners and other residents. They can also answer questions and address the concerns of your HOA community members.
Apart from this, management companies can also help board members implement systems. That’s because they already have access to various resources like software, vendors, and devices you need to run an HOA. They also have prebuilt systems that you can use to quickly get your HOA running. This lets you save time and money on trying out different things from scratch.
2. Accounting and Financial Services
HOA board members are usually also members of the community. As such, they aren’t always equipped to handle the community’s accounting or financial management needs. One of an HOA management companies responsibilities is to fill in these gaps. They do this by providing the HOA with a professional accountant or bookkeeper. These experts can keep financials secure and make sure the community is following proper accounting principles.
Furthermore, management companies will manage the community’s bank accounts. They also collect dues, compile monthly statements, and pay vendors. Moreover, they handle other related duties like printing and sending statements to homeowners, reviewing bills, preparing budgets, and managing expenses. They also manage tax forms, like Form 1120, during tax season.
3. Maintenance and Vendor Management
Management companies also help increase property values. They do this by overseeing the maintenance process to keep communities visually appealing. These companies identify which properties and shared spaces need maintenance. For example, your HOA may need pool maintenance, snow removal, or better landscaping to keep the area in shape.
Once the management company identifies the issues, they inform the HOA board. The board then decides what to do. If maintenance is needed, the management company will look for a vendor. Most management companies already have a list of vendors they can work with to finish the job. Once contacted, the management company is also responsible for overseeing the maintenance and making sure it’s completed.
In addition, management companies can also handle your relationship with various vendors. This can save you time and effort talking to vendors when they don’t do a good job. Likewise, they can also help you keep a good relationship with vendors that you like.
Management companies also enforce your HOA’s rules and regulations to ensure that the residents follow them. This keeps the community’s common areas clean and in proper shape. The community can then use these facilities with ease of mind.
4. Collections and Debt Management
Apart from managing your budget and accounting, Management companies also handle the billing and collection process for community dues. They often bill the homeowners monthly to ensure the association’s financial health. Doing so frees up time for the HOA board members to handle other issues.
Unfortunately, not all community members pay their dues on time. This can be difficult for HOAs to handle because of how complex it can be logistically and legally. Professional management companies can come in and deal with these issues as well. They’re well-equipped to handle late payments like these and can take care of the process.
Usually, management companies do this by sending delinquent notices to the residents. They also escalate these accounts to collections and send notices to the board on delinquent accounts. If too much time passes, they can also coordinate with the association’s collection attorney to initiate legal action. Management companies are also responsible for staying updated on related state laws. This ensures that your HOA is following the proper procedures when it comes to late payments.
5. Legal Expertise
There are many aspects to running a homeowners association. But, most board members aren’t always familiar with applicable laws or legal requirements. That’s why it’s highly beneficial to hire a management company. These companies are likely well-versed in what laws currently apply to your HOA in your state. Moreover, they can easily access legal professionals and resources for references.
With a management company, your HOA won’t need to worry about the legality of how you run the community. They can help you draft all your HOA rules and regulations while ensuring none of them violate the law. These companies can also help you understand the legal requirements of running a homeowners association.
6. Communication and Customer Service
With an HOA management company, board members don’t need to communicate with homeowners very often. That’s because management companies can handle all of the customer service-related activities, too. Homeowners can direct all of their requests, calls, and emails to them. Management companies are well-versed in what community members need and can easily tackle residents’ concerns.
Hire an HOA Management Company Today
Does an HOA need a management company? At first glance, it might not seem worth the expense. But, HOA management companies provide plenty of useful services. In fact, they can handle nearly the entire process of running a homeowners association. This allows the board members to make more critical decisions without being bothered by day-to-day tasks.
Perhaps you’re searching for “HOA management company near me” on Google. If you live around Austin, San Antonio, Houston, or their surrounding areas, then look no further than 88 Doors. We can provide you with expertise and help you manage your HOA. Contact us at (512) 348-8821 or leave us a message online to ask for a quote.
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