When you hire a HOA management company, you unlock several benefits of professional management. Although hiring a management company isn’t free, the fees are well worth the services you get in exchange.
What is a HOA Management Company?
An HOA management company professionally manages homeowners associations, condominiums, and other communities. This company offers its services for a management fee, which can be a fixed overall rate or a per-door price.
The responsibilities of an HOA management company can vary depending on the association’s agreement with the firm. However, they typically include site management, collections, administrative work, and homeowner communication. A management company can alleviate the burden of the HOA board by helping with day-to-day operations and offering valuable advice.
Why You Should Hire a HOA Management Company
Hiring an HOA management company is one of the best decisions an HOA board can make for its community. This is especially true for larger communities, where managing hundreds of homes and complex facilities can be pretty tricky for a few board members.
If you are still deciding, here are the benefits of hiring an HOA management company.
1. Expertise and Experience
An HOA management company has a staff of capable professionals with ample experience in the industry. Professional managers undergo specialized training, even earning certifications, to become well-versed in the field. Compared to volunteer homeowners, managers are more equipped to handle the challenges of HOA management.
2. Compliance With Regulations
An HOA management company knows federal, state, and local laws affecting community associations. The company can ensure your association complies with all regulations, minimizing the risk of liability and potential damages.
An HOA management company also has the time and resources to remain current on legislative changes. Laws can be amended and repealed, while new laws are constantly introduced. With professional management, you don’t have to worry about keeping up with these changes.
While it can help to have a lawyer on the HOA board, nothing compares to a staff of trained legal experts. Not all communities are fortunate enough to have someone on the board with legal experience, and there is no guarantee that they will stay on the board forever.
3. Fair Rule Enforcement
Selective enforcement can put both the HOA and the board members at liability risk. This is always a real possibility in a community without professional management. Board members are, after all, volunteer homeowners. They may have biases and judgments. They can also let their personal relationships with neighbors affect their decision-making.
In contrast, professional managers act as neutral third parties. This gives them the unique position of being able to enforce the rules consistently. Fair rule enforcement builds trust among homeowners and adds credibility to the HOA board.
4. Well-versed in Financial Management
One of the benefits of hiring an HOA management company is accurate and timely financial management. Accounting and financial management are two areas in which most HOA boards struggle the most. After all, not everyone can handle the intricacies of the subject matter.
Fortunately, an HOA management company can help with this, too. Most companies have a team of accountants and financial advisors on retainer. They can help maintain accounting books, prepare financial statements, reconcile bank statements, and prepare annual budgets. They can also give prudent advice on all things related to HOA finances.
5. Streamlined Collections
The HOA board must collect homeowner dues. However, this usually proves difficult when the association’s ways are stuck in the past.
An HOA management company typically offers flexible payment options with convenient online payments, ACH, credit cards, and more. They can also accommodate elderly residents who prefer to mail their check payments.
Most management companies use state-of-the-art software, too. This makes collections a breeze. Homeowners can set up recurring payments, ensuring they never miss a deadline. Companies can also send invoices, manage billing, and keep track of delinquencies using this software.
Speaking of delinquencies, an HOA management company is more experienced in collecting past-due fees. They can employ various collection methods, including referring the account to the legal department.
6. Prompt Maintenance and Repairs
One of the most common HOA management company responsibilities is maintenance and repairs management. This services sees the company conducting frequent inspections, performing routine maintenance, and making necessary repairs. Some management companies employ in-house maintenance personnel, while others outsource the job to a maintenance company.
Additionally, homeowners can report maintenance issues and submit work orders. The management company will then sort through these reports, prioritize them based on urgency, and dispatch the proper personnel to take care of the job. With prompt maintenance and repairs, your HOA community can preserve curb appeal, ensure functionality, and preserve property values.
7. Neutral Third-Party
An HOA management company serves as the perfect third-party neutral when it comes to dispute resolution. Board members may find it difficult to remain unbiased or emotionally detached when resolving conflicts within the community. With a management company, though, internal resolution procedures, mediation, and even arbitration can go more smoothly, allowing parties to reach a mutual agreement.
8. Access to Network of Contacts
Another reason to hire an HOA management company is that you get access to its wide network of contacts. Management companies, especially ones that have been in the business for a long time, typically have many connections—from contractors and vendors to insurance agencies and law firms. Plus, these contacts usually come pre-vetted.
9. Use of Modern Technology
Most HOA management companies don’t rely on manual methods; instead, they leverage modern technology. By hiring an HOA management company, you can look forward to streamlined processes, automated solutions, and 24/7 access to information.
10. Best for Board Members
Board members are volunteer homeowners. And while volunteers are expected to fulfill their duties just the same, they don’t always have the benefit of time and expertise.
With an HOA management company, board members can delegate the day-to-day operational and administrative work to staff members. This gives them more bandwidth to focus on making important decisions for the community’s future.
The Right Match
There are many reasons to hire a HOA management company. Finding the right one, though, is often an uphill battle. You want a company that meets your expectations, tailors their solutions to your needs, delivers quality results, and offers competitive rates.
This is where Freedom Community Management comes in. Call us today at 904-490-8191 or contact us online to learn more about what we can do for you!
