Subdivisions, neighborhood, and condo complexes consist of lots of housing units owned by a lot of different owners.
Sometimes homeowners might need to share the responsibility for certain expenses within their community.
They may also have specific expectations for the way their neighbors should behave and maintain their properties. Communities form HOAs so they can develop and enforce the rules (known as conditions, covenants, and restrictions, or CC&Rs for short).
So, what’s the difference between HOA vs. property management?
Many people confuse a homeowners association (HOA) with property managers’ responsibilities. It’s easy to do because they are both involved in managing housing communities.
However, in most cases, they do work together.
Knowing the ins and outs of HOA vs. property management responsibilities is beneficial to property owners, property management companies, and tenants who live in a community governed by an HOA.
There are multiple benefits for a Homeowners Association (HOA) to hire a property management company. For example, a property manager handles the day-to-day operations or homeowners and manages the financial and business needs of the HOA.
What Does a Property Management Company Do?
Many real estate investors won’t invest in a property without having a property management firm in place before closing. However, if you don’t know what a property management company does, it can be hard to tell whether or not you might need one.
Collecting rent is one of the most critical tasks a property manager does. Sure, you can pay rent online, but sometimes things don’t always go as planned, and you may need back up from a property management company to get the money you’re owed.
Property management companies also deal with tenant maintenance calls, which take a lot of stress off the real estate investor. They also handle urgent and time sensitive requests. If you have blocked or backflowing pipes over the weekend or late at night, or perhaps you’re locked out of your home in the middle of the night, a property manager can help get you back on your feet.
What Does an HOA Management Company Do?
Neighborhoods and various other types of communities consist of multiple units owned by different people. While each person is responsible for their individual dwelling, homeowners may sometimes need to share the responsibility for certain things.
Typically, the HOA management company enforces the guidelines from the Board of Directors for how residents must maintain their properties. In short, HOAs enforce the neighborhood or community’s rules that all homeowners must abide by. These rules are also known as covenants, conditions, and restrictions, or CC&Rs.
An HOA management company typically:
- Maintains the neighborhood’s common areas including playgrounds and swimming pools
- Collects dues to pay for common areas, community maintenance and security
- Assists the Board of Directors in creating Association’s annual budget
- Gets insurance for the neighborhood’s common areas
- Hires staff and contractors
There are certain things tenants and renters are usually responsible for:
- Cleaning up after their pets. If you’re walking your dog or letting your dog out in the front yard to do its business, it’s your job to pick up after it. This is almost always outlined in city ordinances and HOA rules. Outdoor cat owners may also require even more rules about keeping their cats inside.
- Managing the trash and recycling. Homeowners are also in charge of keeping trash out of recycling bins and recycling out of trash bins. The property management company usually does not deal with the trash and recycling process. Either the owner contracts with a private business to pick up recycling and trash, or the tenants are responsible for putting their bins out onto the curb. Residents are also in charge of litter and cleaning up after themselves.
What is the Difference Between a POA & an HOA?
HOAs and POAs are different. However, sometimes they can play similar roles.
Homeowners associations (HOAs) and property owners associations (POAs) both have rules and regulations.
If you want to begin an HOA within a neighborhood, there must be homes, apartments or condos on site. After the HOA forms, homeowners become members of the association and work together toward making the neighborhood a happy and healthy place to call home.
POAs are more concerned with property.
For example, you can have a POA that contains nothing, but empty lots. In this type of situation, it’s the property owners that become members of the association.
HOAs are in just about any kind of neighborhood from urban cities to the suburbs, but POAs are usually started around a landmark, such as a river or a golf course, in the hopes that people will want to buy the land for its location.
Why You Should Hire an HOA Management Company
HOAs make residents lives more comfortable and keep the neighborhood and its homes looking tidy and appealing to prospective buyers and other residents. They are also an excellent way to make sure the neighborhood’s quality of living is not only superb but that residents are happy and proud to call their neighborhood home.
If you are considering hiring an HOA company and you are trying to weigh the HOA vs. Property Management Responsibilities, you’ve come to the right place.
Slatter Management Services specializes in analyzing and controlling operating expenses; elevating collections; using its buying strength and cost awareness to lower the costs.
We generate top value for the property when it sells by up-keeping and managing each Homeowners Association to help it reach its full potential. And, we also provide you with reliable and timely data, so you always know exactly where you stand.
If you’re looking for an HOA management company and you want to hire someone who will always look out for your best interests, give Slatter Management Services a call today!