Deciding whether or not to work with a homeowners association management company is an important question that faces every HOA at some point. On one hand, it’s tempting to try to save the monthly management fees and direct those funds back into the association. On the other hand, the amount of work and expertise required to run a community effectively is usually too overwhelming for HOA boards, who are generally comprised of volunteers.
There are three core ways that a homeowners association management company adds value to the members of the association and the homes in your community. A clearer understanding of the function and services provided by a management company should make your decision easier.
An HOA management company is a team of professionals focused on your success.
The staff at a management company is trained to handle the specialized challenges of running a community that preserves home values and protects the association.
They have the time to dedicate
HOA boards are comprised of volunteers who spend their extra time making decisions for the community. For the management company team, this is their full-time job. An HOA board of volunteers simply cannot match the dedication, attention, and manpower that a professional management company can provide.
They maintain a long-term focus
While board members come and go with each election cycle, management companies maintain a long-term focus on the success of the community. The stability and consistency they provide keep the association from experiencing any delays or hiccups that can arise from board member turnover.
They are experts in association management and they protect your association from liability
Management companies are comprised of property management experts. They possess a deep understanding of code requirements and business best practices that ensure the association is never exposed to excessive liability.
A management company comes with a built-in infrastructure.
The day-to-day operations of successful HOA management require organization, communication, and a strong infrastructure. A management company has all these necessary pieces already in place.
Open channels of communication
A management company has the staff on hand to quickly respond to phone calls and emails. The management team can also quickly set up your community’s website and make sure it remains updated, providing valuable information, notices and forms for residents’ easy access.
Accounting services and multiple payment methods
Most management companies have full accounting teams that help manage your accounts receivable, accounts payable and produce monthly financials for associations. In addition, management companies have systems in place to accept many forms of payments for dues, including ACH bank transfers. This level of convenience helps busy homeowners who might find it difficult to write and mail a check every month.
Management companies have the expertise to help your HOA conduct meetings and prepare documents in a professional and legally compliant manner. A homeowners association management company also assists the HOA in selecting vendors with the appropriate licenses and insurance coverage in place. This professional guidance saves time and protects the association.
A management company creates a buffer between homeowners and the board.
It can be challenging to live in a place where you also enforce the rules that affect your neighbors. A management company is an unbiased third party with experts who are trained to have difficult conversations and handle tricky situations fairly and diplomatically. By relying on a homeowners association property management company to interface with residents, you can distance yourself from uncomfortable interactions that might affect relationships with your neighbors.
A homeowners association management company provides many important services that sometimes aren’t totally obvious. But these back-end systems are the foundation of quality HOA management that support and protect the association.
If you or anyone on your HOA board has additional questions about whether or not to work with a management company, call us at (949) 833-2600 and we will be happy to discuss which management solution will work best for you.