A Homeowner’s Association is the entity that handles governing the community they oversee and manage.
A Homeowner’s Association (HOA) manages and enforces a community’s by-laws and Covenants, Conditions and Restrictions (CC&Rs) while assisting the Board of Directors with modifications of existing rules, when necessary. These matters relate to:
- The maintenance of the common areas
- The Homeowner’s Association ‘s financial responsibilities
- The investigation of non-compliant unit owners, and
- Setting forth penalties for owner violations
Clearly, the management of an HOA requires significant time and effort. So, how does a property manager reduce the burden placed upon the board of directors?
1. A Property Manager is capable of reducing the time required to manage a community. In addition, their professional support eases the stress placed upon the Board of Directors.
Property Managers professionally manage a Homeowner’s Association’s finances.
A Property Manager enforces the Homeowner’s Association’s by-laws and CC&Rs. Very often this includes the following fiscal responsibilities:
- Assessment collection
- Timely bill payments
- The preparation of financial statements for board meetings
- Budgetary advice
- IRS tax requirements
2. A Property Manager is an exceptional record keeper.
Managing real estate requires exceptional bookkeeping skills. Detailed records need to be safely stored and easily accessible to both the unit owners and industry watchdogs. Vigilant Bookkeeping skills apply to the following documents:
- Every association record
- Owner files
- HOA Contracts
- Budgetary Items and Meeting Minutes
- Architectural Control Committee (ACC) items, among others.
3. Property Managers practice eco-friendly services.
As a general rule, property managers offer environmentally friendly techniques and services like:
- Energy Star products guidelines – to reduce gas emissions and energy use
- Solar panels options – to reduce electric bills
- ‘Green’ landscaping (xeriscape) ideas – to reduce the Homeowner’s Association’s carbon footprint
- Available Sustainable brands – to prevent needless waste
4. Property Managers act as the direct link between unit owners and the HOA.
Property Manager’s are a great resource for professional advisor recommendations (e.g. CPAs or attorneys). They also diligently manage insurance coverage and unit owner claims, and, give the Board of Directors advice when requested.
Many unit owners in Homeowner’s Association communities mistakenly think that they are not permitted to review documents related to ongoing issues, special projects or general procedures. This is, in fact, NOT true. Unit owners within a community managed can request copies of documents directly from the property manager. Here is a partial list of the documents available:
- Meeting minutes
- Articles of Incorporation Architectural Review Changes (ARC) & Future planning documents
- Community Welcome Materials
- Bylaws & Declaration of Covenants, Conditions, Restrictions and Easements (CC&Rs)
- Resident Contact List
- Flood Maps, if applicable
5. Property Managers possess a wealth of knowledge and a variety of services.
A skilled property manager is quite helpful when developing community programs that build a ‘sense of community’. A Property Manager’s objective is to enhance the property and the value of the Homeowner’s Association, along with each residence. However, a Property Manager must always follow the associations CC&Rs and by-laws in all HOA matters. With the board’s direction, a Property Manager develops procedures for residents to follow when preparing for community-wide events. Many Property Managers can implement programs that facilitate the development of a welcoming community.
