Homeowners have sometimes asked why a homeowners’ association (HOA) needs a management company when there is a perfectly good board of directors that they elected to run the community.
First of all, HOAs are usually classified as non-profit companies, and bylaws and declarations necessitate a board of directors.
Secondly, board members are community volunteers using their spare time to attend meetings, guide decisions, and send out occasional emails. They are unlikely to have the 20-plus hours per week needed to oversee the HOA’s daily operations.
Lastly, if board volunteers did have full-time hours available to serve the association, it would probably be difficult for them to commit the time needed to make the HOA successful due to other life factors.
A management company can make a full-time commitment to a community association because it is their job. They are focused on providing:
- Heightened communication between homeowners and boards
- Accounting support with cloud-based finance management software like CINC Systems
- Guidance and strategies for long-term growth
- Preventative, not only responsive, maintenance
- Dispute management
Management companies provide expert-level support for community associations ensuring residents’ needs are met and that property values continue to climb. An association community should ultimately be a place that current residents desire to live, and a destination that future buyers seek out.
Benefits to an HOA Management Company
When you elect to hire an HOA management company rather than self-managing, you can expect these advantages:
Financial Oversight
When a property management company takes over an association’s finances, it can lead to increased home values, lower overall settlements and claims, enhanced onsite facilities, and improved quality of life for everyone. Companies using CINC’s multi-faceted association management software improve homeowner experience by increasing financial transparency and improving communication between the board and its homeowners. Bank integration and automated account reconciliation allow financial reports to reach board members within days of month’s end. This enables an association board to make timely, informed business decisions.
Management Consistency
Boards of directors change every couple of years; however, a property manager can provide consistent contact from one administration to the next. Continuity is vital for budgeting, record keeping, relationships with vendors, suppliers, contractors, and even residents.
Expertise and Experience
When communities hire an association property management company, they acquire the expertise and experience of its team. This includes specialties in law, finance, and governance. Associations benefit significantly from a management company’s thorough knowledge of federal, local, and state laws that impact everyday community association operations. This wealth of expertise and experience makes professional managers a priceless resource for the community’s board.
Economic Benefits
HOA management companies can save homeowners and association communities thousands of dollars in unplanned expenses and depreciated property value. By creating a solid budget with adequate reserves, a management company can see to it that capital components are maintained, and funds are available for upgrades. They can also ensure fees are paid and policies are followed, keeping every resident on the same page.
An HOA property management company can be one of the most cost-effective decisions an association’s board of directors can make. Management companies can ease stress, maintain a smooth-running community, and improve homeowner/board relationships.