The Role of an HOA
The role of a homeowners’ association (HOA) is to fulfill various responsibilities for single family and townhome communities. While homeowners are accountable for their individual properties, the HOA serves as the representative for shared property, safeguarding the interests of the homeowners involved. This includes the communal outdoor areas like neighborhood signs, entrance landscaping, pools, or clubhouses. In the case of condo associations, additional obligations arise as members share more than just walls. They also have shared hallways, roofs, and parking lots. By improving the quality of life, HOAs enhance the value of the communities, making them more appealing to potential buyers. The HOA board assumes leadership within the homeowners’ association. Board members are elected by homeowners to advocate for their interests, manage the budget, and handle administrative tasks. For instance, they may be responsible for selecting and contracting a fencing company. The HOA operates based on governing legal documents that establish community rules and regulations, which can be revised and updated as necessary over time. HOA board members are volunteers who have a genuine concern for their community and dedicate their time without compensation. They must be owners within the community and contribute assessments (dues) the same as the other association members. The board is where most of the decisions take place, so if you want to have more of a voice in your community, consider joining the board.
The Role of the Association Management Company
The management company will employ a Community Association Manager (CAM) to provide assistance to condominiums, townhomes, and homeowners associations in managing their administrative tasks and serving as an advisor where board members may lack expertise. Managing an association involves a significant amount of work, particularly in the case of condo associations and larger communities. The association board is responsible for enforcing rules and addressing homeowners’ concerns regarding these rules. Moreover, the association must oversee the management of vendors for the repair and maintenance of shared areas, which can be a considerable undertaking in communities with numerous units. In addition, board members have a fiduciary duty to responsibly manage the community’s finances. Association management companies often assist in planning and overseeing the association’s budget. It is crucial for the HOA to collect assessments in a timely and efficient manner to ensure adequate funds for necessary expenses. Managing this important requirement is a primary reason HOAs choose to hire a management company. Association management companies work on behalf of HOAs, providing tools and resources to assist with administrative tasks. For instance, association management companies may offer online payment systems and community websites while also being responsible for sending out notifications for fines and overdue assessments based on the fine schedule established by the HOA. It’s important to note that the management company simply enforces the rules set by the HOA itself, despite misconceptions that they create the rules or fine schedule. Additionally, management companies act as advisors to HOAs, particularly in areas such as bookkeeping and financial statements. Even though an accountant homeowner may volunteer as a board member, it may not always be feasible over the long term. A management company can handle budgeting and financial statements on behalf of the board. Management companies can also assist with helping the HOA manage its maintenance requirements. However, they do not directly perform maintenance and repairs. The role of the HOA management company is to ensure that all maintenance vendors are licensed, bonded, and insured, therefore helping shield the association from unexpected liability.
Association Maintenance Responsibilities
The maintenance responsibilities are vast and a reputable management company can help the board stay on top of all the requirements. The following list provides a sampling of the tasks the management company will be concerned with:
- Maintenance of common lawns, trees, trails, ponds, and dog waste stations
- Upkeep of the clubhouse, party rooms, fitness room, and pools
- Monitoring and maintenance of shingles and roofs in condos
- Maintenance of shared walls and pipes within condos
- Care for hallways, stairs, elevators, and the mail room
- Maintenance of balconies and patios in condominiums
- Upkeep of parking lots, sidewalks, and usually some utilities
With direction from the board, the manager will collaborate with all the necessary vendors to ensure proper repair and maintenance for all of these shared community elements.
To illustrate, let’s consider lawn care as an example. Lawn care incurs substantial costs from the HOA’s budget. Similar to all the aforementioned responsibilities, the management company is not the entity responsible for performing the actual upkeep. Their role is to make efforts to schedule the services and it is the lawn care company’s decision to determine the order in which they service their customers. Given that a lawn care company may have numerous customers, not all communities will feel they are given priority.
Understanding the specific responsibilities of each party involved can relieve tensions that will inevitably arise. It alleviates the feeling of being out of control and enables you to approach the appropriate party to address any concerns. Verity Residential can assist your community with managing the diverse personalities and concerns involved with your community.