They can also submit reporting violations to the board. Homeowners, board members included, must obey these rules and covenants. This can be in the form of operating rules or covenants found in the CC&Rs. The management company has no right to waive late fees or fines.Įvery association has rules and regulations that govern the community. Sending notices to homeowners about their fines and late fees also fall under the HOA management company’s duties. The management company, on the other hand, processes the fines and implements the late fee policy. In terms of fines and late fees, the HOA management company has no power to make decisions or create policies. In most cases, the HOA management company’s involvement is limited to a communicative capacity.
Here are some instances used to define the board and the management company’s roles. It is difficult to determine the duties of the HOA board vs HOA management company without concrete examples. HOA Board vs HOA Management Company: Defining Specific Duties Rather, they make sure maintenance vendors have proper insurance and coordinate with them on behalf of the board. These companies do not perform repairs and maintenance work themselves, though. HOA management companies employ accounting and financial managers who can help with this area.Īnother aspect management companies can help with is maintenance. For instance, while a homeowner with accounting experience can manage the association’s finances and create reports, it is not always practical to perpetually have the same person on the board. Homeowners association management companies essentially act as advisors, not leaders. When it comes to creating policies and fine schedules, the board handles all of that. HOA management company duties include assisting with administrative work, executive board decisions, and communicating with residents. While the role of a management company is to offer a helping hand, the board should still retain all decision-making tasks. Most HOA boards bring in an HOA manager or management company to assist with day-to-day operations. Though some smaller communities can operate smoothly with the board alone, larger ones require external help. Running a community association is, in many ways, similar to running a business - it takes a great deal of work. Furthermore, because board members are volunteers elected into their positions, they also do not receive a salary. They follow the rules of the association and must pay assessments just like regular homeowners. HOA boards must also uphold certain fiduciary duties and make decisions in the community’s best interests.Īll this work ultimately serves an overarching purpose - to maintain property values.ĭespite the seemingly glamorous nature of their job, HOA board members do not get preferential treatment or perks. An HOA board should create and manage an annual budget, hire vendors, enforce covenants, oversee maintenance, and more.Īn association’s governing documents, formed at the inception of the HOA, dictate what the board must do. In condo associations, HOA board duties also extend to other shared properties, such as roofs, hallways, and parking lots.Īlthough these duties seem simple on the outside, there is a lot of administrative work that goes into maintaining these properties. This applies to community associations for single-family homes and townhomes. Shared properties pertain to pools, clubhouses, community parks, lobbies, neighborhood signs, and even shared walls and pipes. While homeowners should generally take care of their own properties, maintaining shared properties or common areas is the responsibility of the HOA board. Therefore, the functions they perform should reflect that. While an HOA board can benefit from the help of a management company, some duties should remain for the board alone.Īfter all, HOA managers are not supposed to act as board members in an association. Before long, HOA managers are performing functions meant for the HOA board.ĭiscerning which responsibilities fall under the board’s control and which ones belong to the management company is the first step to preventing such a mishap. However, unlike a machine, the lines of responsibility between the HOA board vs HOA management company can start to blur. Much like a machine, the HOA board and the management company make up different parts that, together, keep the community in continuous operation. HOA board members work hand-in-hand with their HOA management company to run an association. Yet, it is equally important to know the difference in roles and responsibilities between the HOA board vs HOA management company.ĭifferentiating Roles of the HOA Board vs HOA Management Company In a homeowners association, the board and the management company must work together to run the community.