Managing a homeowner’s association successfully is a thankless job. However, it is important for the community members to feel safe and comfortable when residing within the association’s property. Unfortunately, the board members are usually volunteers who reside within the premises. Some of them may be employed or engaged in a self-profession that demands their time and attention. Looking after the day-to-day tasks of the association is difficult for the board members as a result. A majority of HOAs find the prospect of hiring a third party or an HOA management company to look after the interests of the community and association.
The idea does seem to be too good to be true but it is the responsibility of the association to inquire about the services such a company is willing to provide. It is also important to know that such a company is a third party and not a part of the board. On the contrary, it will work under the instruction of the board members and complete time-consuming responsibilities that the board members are unable to take on.
Assistance Provided By An HOA Management Company
The company is usually asked to assist with the day-to-day operations including communicating with the residents, vendor management, and looking after the finances. Some of the more specific services that the third-party management company provides include the following:
Finances
Checking and maintaining the association’s finances can be a tough job especially when the board members are not too well versed in accounting. Money matters can be a major responsibility that the board members are happy to delegate to the company entrusted with HOA management. Such companies have a fair idea about the kind of tasks to undertake and is sure to have an accounting professional on their team. Some of the basic responsibilities related to finances that the HOA company takes on include:
- Complete everyday financial tasks.
- Draw up a yearly budget.
- Maintain records.
- Provide suggestions to prevent unexpected charges.
- File tax returns on behalf of the HOA
Enforcing Association’s Policies
Managing the community effectively can be a tall order as the board members are often unable to enforce new regulations even after the documents have been signed. Thankfully, the HOA company will be well aware of the laws and regulations. They will step in as needed to implement the policies and guide the residents within the community. Ensuring compliance by facilitating transparency for all and resolving disputes can ensure the smooth running of the HOA.
Risk Reduction
The board members are volunteers who have little or no knowledge about managing an association. However, the management company can bring in their expertise and experience to reduce the related risks to the community. Some of the tasks handled by the company include…
- Regulation of safety hazards.
- Addressing all outstanding risks.
- Keep all community members informed about potential risks affecting the community.
Arranging legal assistance for the HOA as and when needed is also the responsibility of the third party.
Hiring a HOA management company with a proven track record for providing valuable assistance to the board members of the HOA is an action that is popular and extremely well received by the entire community.