The individual owners elect or nominate the Homeowners Association (HOA) Board of Directors to serve the community through specific defined rules and regulations. Small associations can manage the affairs of their homeowner association on their own if they have qualified leaders with the time to perform for the community. Large associations, even with competent leaders, can’t typically manage their HOA without extra help since its Board of Directors may be managing their personal affairs/ businesses. They may lack the time or interest to run an HOA. In most cases, it becomes difficult to find a qualified Board of Directors.
Also, federal, state, and local governments all have some command over real estate property management activities. It is challenging to be on top of all your HOA’s responsibilities. Running an HOA is difficult since it involves consistent and professional efforts to succeed. That is where the role of Professional HOA Management company comes in. And it is always easier to let a professional property management company handle the HOA affairs.
In all cases, the Property Management Company will allow you to sit back while they carry out all the management details on behalf of HOAs. You still hold leadership in the management of your Homeowners Association. The difference is that the workload will be on the Property Management Company, like LBPM. The HOA property manager can add to the critical decision making, suggest means to enforce rules and policies and ensure the HOA operates as per framed rules. The HOA Property Management Company handles the administration, financial accounting, manage vendor responsibilities, and legal issues. They also review information to understand the big picture and unique needs of the association, suggest insurance options for risks, provide site surveillance and all affairs of HOA more effectively and at an economical cost.
Benefits of a Property Management Company
Here are some significant key-benefits your HOA can gain with the right HOA management company:
1. HOA Management Company has years of Experience
An HOA Management Company possesses years of professional experience in managing properties. They interpret the rules and regulations with clarity, timely share these with community members and implement more effectively so that the affairs of the association proceed ahead as per schedules.
2. HOA Managers are Licensed Professionals
An HOA property management company deals with contracts, administration of communities and implementation of agreements which can only be handled by a core of professionals with specific knowledge and sound property management practices. Many states have made it mandatory for a property managing company to have a specialized license. The property management company has to appoint professionals who have undergone a specific set of coursework and professional education. The community association managers are licensed professionals regulated through mandatory training, testing, and held to high standards of conduct. The property managers are liable for punishment or fines in case of any mistake while handling association property affairs. Hence the HOA, appointing licensed Property Management Company, is protected by law and will all care while handling matters of HOA. So, the association Board must verify that the property Management Company is in possession of Certified Manager of Community Associations (CMCA) License awarded by the National Board of Certification for Community Association Managers (NBC-CAM) before its engagement.
3. Administer the HOA Community Rules
One of the essential aspects of homeowner association management is that its rules are well defined and updated to meet with the latest legislation of the state. Moreover, its members are aware of rules, and they follow these in true spirit. The property company will be administering wise decisions for the community with a rational mind and ensure the implementation of laws/legislation by periodic checks and issuing notices to the defaulters. The HOA management company shall handle community issues with equal and fair standards.
4. Ease up Administrative & Financial Responsibility
The Property Management Company helps in maintaining the administration enacting the policy affairs of HOA. They also handle financial issues such as; collecting dues, paying invoices, cost-effective services, arranging the best and economic vendors for routine maintenance and special repairs, impose fines and provide an easy to access HOA board portal for the same purposes. The company will issue notices to violators to deposit dues, maintain detailed statements for meetings and audits, take all actions to comply with state laws, etc. thus easing up the administrative and accounting services for HOAs.
5. Handle Daily Operations Cost-effectively
Residents of gated communities pay a regular fee to their homeowner’s association for maintaining routine building maintenance, landscapes, and, other ventures that keep the community’s curb appeal wisely at a cost-effective rate. Boards of Directors of HOA, having minimal experience in daily operations, don’t possess the knowledge to maintain the premises economically and qualitatively. Besides this, the HOA Board may not like to be involved in tiresome day-to-day activities of managing HOA. The professional HOA property managers will visit the sites for property conditions and handle works since they have exposure to market trends and vendors. They can handle daily operations cost-effectively while HOA can play a supervisory role with the satisfaction of its community. Apart from this, the property management company will provide monthly reports to the HOA Board and suggest solutions to any of the routine problems of the residents.
6. Expert of Legal Guidelines
The scope of property Management Company also covers to advise the Board members on legal guidelines concerning city/ state laws and update the new legislation which may affect the community if not implemented. They ensure the implementation of association laws. They will also apprise the community about legal aspects as and when required so that they cooperate in their application. Moreover, their legal services will be more effective and economical to your HOA since they will be providing legal services to some HOAs simultaneously. So, by engaging HOA property Management Company, HOAs will also be availing expert legal guidelines and need not fear any violation of rules and regulations which will create a fearless environment for every resident and the Board.
7. Managing Vendor Responsibilities
Apartment complex needs vendors for regular maintenance of the building, landscape, trash services and special repairs on the aging of structures. The selection of quality vendors may be tiresome work for the Association Board. Property managers have an established extensive network service directory to select local and suitable ones among the list of vendors. Your property manager will visit in person the property, explain the condition of the building or other allied works and suggest the Board of Directors the list of vendors for execution of the job. He will also be responsible for supervising the tasks and impart necessary instructions to vendors for the proper performance of the work.
8. Site Surveillance
HOA Property Management Company will closely observe suspected persons who could flout the association rules or perform illegal activities in and around the association’s premises. They keep the community club, swimming pool, parks, and other common areas under surveillance and take proactive measures to avoid any malpractices, not in the interest of the community. The property managers may associate the Board in taking the help of the police to curb any crime in association premises.
9. Work in favor of Suitable Community Environment
The HOA management company considers its moral duty to keep the association Board and the community optimistic to serve in their best interests all the time. They work for healthy, safe and favorable community environments including clean air and water, secure housing, a suitable and economic neighborhood which is the foremost duty of association Board towards its fellow residents of the community.
A full-service property management company, thus, beneficial to homeowner associations in the development of the community with enforcement of regulations and making a suitable living environment for each property owner. Let LBPM, the successful HOA property management company for the past 30 years in Los Angeles & the San Fernando Valley, enlighten you with their professional and legal knowledge and expertise in Property Management that benefits to HOAs.