Running a community association can be challenging. Often the homeowners’ association (HOA) manages the organization’s business affairs while struggling to satisfy the community’s wants and needs.
Yet these obligations can become overwhelming and more than the volunteer board members want to take on. When the board gets to this point, many HOAs employ an association manager and management company to oversee community operations.
Once a management company is onboard, it can become confusing as to the roles of the different parties. Let’s take a look at an association management’s role in an HOA board and how it can benefit a community association.
HOA Vs. HOA Management
The jobs of both entities include community building business operations. Despite both the HOA and the HOA management company having the same ultimate objective, each functions in a different capacity.
An HOA’s Responsibilities
An HOA’s responsibilities and the roles of its board members are determined by the association’s governing documents, CC&Rs, local, state, and federal laws. The board runs the HOA and comprises home-owner-elected volunteers.
The HOA is usually responsible for:
- Overseeing the amenity and common area maintenance
- Providing shared services like trash collection
- Collecting dues
- Enforcing governing documents
- Paying for ongoing expenses
- Saving for capital components and expenditures
The HOA’s board of directors is normally tasked with:
- Overseeing the above functions
- Hiring vendors
- Adopting policies
- Making decisions through meetings
Association Management’s Role
HOAs sometimes turn to professional third-party management companies to help handle their considerable number of obligations.
Community association management companies are chiefly responsible for four main areas of management: administration, accounting services, accounts receivable, and site management.
- Administrative services:
- Guide board members to help them fulfill their responsibilities.
- Schedule and attend board meetings.
- Enforce community rules and regulations.
- Serve as the homeowners’ main point of contact.
- Execute the directives, decisions, and policies confirmed by the board.
- Provide a positive homeowner experience.
- Accounting solutions:
- Manage community bank accounts.
- Calculate maintenance costs.
- Analyze monthly billing for community assessments and dues.
- Keep detailed AP and AR records.
- Create monthly financial reports and board packages promptly.
- Supply long-term funding advice for the board and community.
- Help the board prepare its annual budget.
- Accounts receivable/ accounts payable oversight:
- Update the board with delinquent account reports.
- Send delinquency notices (as directed by the board).
- Fund collections (according to board policies and directives).
- Coordinate legal action and work with the association’s attorney.
- Track collection letters, late fees, ACC correspondence, and violations.
- Site management:
- Perform on-site visits.
- Check for rule violations.
- Look for maintenance issues.
- Make sure vending tasks like pool and lawn care are being performed as contracted.
- Respond to homeowner inquiries on time.
CINC’s CAM Software Provides Next-Level Functionality
Companies that use CINC’s community association management (CAM) software can deliver unmatched administrative services, accounting solutions, AR/AP oversight, and site management for their clients.
Click here for a free demo and experience how platform centralization, increased automation, improved communication, and heightened financial transparency can make your association and condo management pain points a thing of the past.