Why HOA Boards Benefit from Working with an HOA Management Company
Some of the benefits an HOA management company provides include:
- Clarity – Management companies help ensure the HOA rules and regulations, and policies are clearly defined and communicated to members. They also make sure these rules make sense and are easy to follow.
- Consistency – A good management company enforces homeowner associations rules and policies with consistency. The management company makes sure there’s no perception of unfair treatment or favoritism among members. They will also deal with problems as soon as they surface.
- Legal Knowledge – An HOA management company is often very knowledgeable regarding legislation affecting homeowner associations. The company will understand how the HOA’s policies, and enforcement of the policies, best conform to the law.
- Varied Expertise – An HOA management company will have diverse professionals on staff, including experts trained in community management, finance, accounting, information technology, human resources, marketing, and more.
- Vendor Management – Management companies, are experienced in building solid vendor relationships. They know how to keep issues from escalating. And, vendors may be more inclined to work with professionally managed HOAs because they know the chances are high the community will be well run.
- Neighborhood Commitment – Homeowners need to feel the management company is maintaining a safe, well-managed neighborhood that is meeting their expectations. It’s in the HOA management company’s best interest to make all the members within the community satisfied with their services.
- Effective Communication – An HOA management company can open the lines of communication among members. Everyone within the community must feel comfortable voicing their concerns and ideas. A professional management company with multiple communication tools can bring more to the table than just enforcing HOA rules.
What Type of Community Should Hire an HOA Management Company?
Often, size dictates whether an HOA hires a management company. A smaller community may opt to be self-managed, whereas a larger HOA may find it impossible to conduct business without the help of a trained professional.
Although size is one criterion, it’s not the only deciding factor. A better way to decide whether to hire a professional HOA management company is to consider the following:
- Does the HOA manage many buildings, amenities and properties?
- Does the HOA have a lack of volunteers to manage the association?
- Do the volunteers lack the skills and expertise to do the necessary HOA management work?
Some HOAs may find they need to supplement their volunteer work with an outside professional management company. For example, maybe the HOA management company will handle some of the accounting functions and Board member volunteers manage homeowner association rules and communications.
However responsibilities are delegated between the Board and management company, the focus should always be on keeping current members happy and involved.