The Difference Between HOA and Property Management Responsibilities
Who's in charge here?
Homeowners Associations benefit greatly when they bring in the right property management company. Professional property managers relieve stress by handling the day to day operations of the Association; Thereby freeing up valuable time for board members to focus on high level strategic improvements and overall preservation of the community.
Together, the association’s board of directors, its homeowners and the property management company all play an integral role in the prosperity of the community. To ensure expectations are met, it is important to understand the roles and responsibilities of everyone involved.
Property Management Company Responsibilities:
The best property management companies understand that associations have different needs. With this in mind it is important to find a property management company that can tailor their services to the needs of your community, capitalizing on what resources you may already have and filling in the gaps where needed.
Below are a few basic services provided by most property management companies:
- Manage day to day operations of the Association
- Collect assessments
- Enforce Covenants & Restrictions
- Schedule general membership meetings
- Respond to homeowner inquiries and concerns
- Report regularly to the board of directors
- Ensure quality vendor performance
Often times homeowners confuse the roles of their board of directors and their management company, especially when it comes to rule enforcement. Simply put, the property management company is the enforcing arm of the association. The management company’s job is to execute and enforce the standing rules of the association and the decisions of the board of directors.
Despite what most homeowners think, property management companies do not have the authority to make assessments or rules for the association, nor does it have authority to decide on the penalty for non compliance. Those decisions are made in accordance with the association’s governing documents and, in most instances, by the board of directors.
Our goal at Gulf South Property Management is to partner with your board of directors to optimize property values and ensure a harmonious living environment for all neighbors.
Board of Directors Responsibilities:
The governing documents of the Association (By Laws, Covenants & Restrictions, Architectural Committee forms) dictate how the board of directors is formed and what committees should be in place to keep the association running smoothly. While this differs somewhat from association to association there are some common responsibilities found on most boards.
Below is a list of common board responsibilities:
- Draft rules and regulations for the association
- Review and assess the work of the property management company
- Establish and maintain committees
- Set operational and reserve budgets
- Set special assessments as needed
- Elevate issues that cannot be resolved in the normal course of business
The board oversees the performance of the property management company closely and is responsible for providing guidance on how and when issues should be elevated. Together, the board of directors and the property management team keep the association running smoothly with an eye toward maintaining the original integrity of the community and adding value when and where possible.
And last, but not least….
Homeowner Responsibilities:
Unlike tenants in residential real estate, homeowners have a much larger stake in the management of their association, and for good reason! Preservation of their largest asset is important to everyone.
Below are a few ways homeowners can assist in the management and preservation of their community:
- Keep pets leashed and pick up after your furry friends
- Follow all Covenants and Restrictions
- Keep trash bagged and in cans - make an effort to pick up and put out cans promptly
- Become an active member of the association
- Offer potential solutions and assistance on pressing issues
- Ask questions, seek to understand and assume positive intent on board decisions
- Report crime to the proper authorities (speeding, vandalism, theft etc.)
When homeowners, board members and the property management company understand and execute on their respective roles the association will undoubtedly come out ahead.
For questions on this article or to discuss how Gulf South Property Management can add value to your homeowners association, please contact us using the form below or feel free to stop by our office.
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