Subdivisions, neighborhood, and condo complexes consist of many housing units owned by a variety 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 maintain their properties and behave within the community. Many communities form a homeowners association (HOA) to develop and enforce the rules (known as conditions, covenants, and restrictions, or CC&Rs for short).
Many people confuse the responsibilities of an HOA with those of a property manager. It’s an easy mistake to make because both are involved in managing housing communities. In some cases, HOAs and property managers work together to collectively oversee the community space. Knowing the ins and outs of HOA vs. property management is beneficial to property owners and tenants who live in a community governed by an HOA. There are multiple benefits for a homeowners association to hire a property management company to work for them and take care of day-to-day operations within the community.
What Does an HOA Management Company Do?
Neighborhoods and various other types of housing 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 shared common areas and infrastructures. Typically, the HOA management company sets the guidelines for how residents must maintain their properties. In short, HOAs enforce the neighborhood or community’s guidelines 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
- Sets and collects dues to pay for common areas, community maintenance and security
- Sets budgets through active and diligent accounting services
- Gets insurance for the neighborhood’s common areas
- Hires staff and contractors
- Manage the entire HOA if HOA board management is needed
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.
Property management companies may deal with tenant maintenance calls, which take a lot of stress off the real estate investor. Property management companies also deal with 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. The duties of property managers can vary, but they may include overseeing paid staff or contractors, communicating with residents, collecting dues, and handling emergencies. When working for an HOA, a property manager would report directly to them.
What is the Difference?
HOAs and property owner associations (POAs) are different. However, sometimes they play similar roles.
Homeowners and HOA management companies may work together as board members in the homeowners association and work together toward making the neighborhood a happy and healthy place to call home.
POAs are more concerned with property than the community as a whole. 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 property owners association.
HOAs are in just about any kind of neighborhood from urban cities to the suburbs, but POAs are usually started around a landmark area, 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 the 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. But running an HOA can stretch residents thin and can possibly strain relationships with their neighbors.
If you are considering hiring an HOA company and wondering about the differences between HOA and 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, and managing homeowners associations. We generate top value for the property when it sells by maintaining and managing each Homeowners Association to help it reach its full potential. We also provide you with reliable and timely data, so you always know exactly where you stand in your area.
If you’re looking for an HOA management company and you want to hire someone who will always look out for your communities best interests, give Slatter Management Services a call today!