Advantages of Association Management
The decision to hire a professional association management company for a homeowners association is not one that should be taken lightly as it will affect the HOA long-term. The board of directors should evaluate all of their options to determine what is the best option for the community. Self-management may seem like the best course as management fees can be used towards reserve funds and maintenance projects, and the board retains all control of every aspect of the association. But managing a homeowners association is a full-time job within itself, and with most board members having their own full-time jobs, many will turn to a property manager.
The role of a property manager is to assist, working as a partner with the board of directors, who remain in control and make all of the final decisions. A professional property manager will have the training and experience to not only handle day to day duties, but also solve problems before they arise, ensuring the community is protected in both the long and short terms. This alleviates much of the stress from the board of directors.
Professional management companies have the ability to track and process all payments from homeowners and to vendors, assist in the creation of the annual budget, enforce the board’s collections process, and provide regular financial reports to the board. All association records are kept in a single location and are available for review upon request at any time, allowing the association’s documents and financial information to stay sound and complete.
Most companies and managers are on call 24/7, 365 days a year to deal with urgent maintenance issues. They are able to coordinate with vendors and insurance companies to make sure every situation, such as a water line break in the early hours of the morning, is taken care of appropriately. Managers can also coordinate normal maintenance requests, scheduled and preventative maintenance, and contract negotiations with vendors.
Covenant enforcement can also be handled by a management company. They can perform regular inspections, then report their findings to the board of directors to confirm which issues should be issues violations as per the association’s governing documents. This consistent enforcement will help the community’s appearance remain neat, and its property values high.
The trust associated with hiring an association management company is incomparable. The homeowners of the association can be confident their dues payments are being handled correctly and that the board is receiving appropriate guidance to make decisions in the best interest of the community. In turn, board members can trust in the property manager and rest of the management to carry out their decisions in a professional manner.