Many homeowners’ associations hire a third party HOA management firm to manage a neighborhood community. Hiring a management company is not only cost effective but also brings many benefits to your neighborhood. In this article, we have highlighted the responsibility of a HOA management company.
A well-organized HOA management team effectively carries out all administrative tasks of an association. They facilitate communication between stakeholders, schedule board meetings, and provide monthly management reports. They also enforce the rules and regulations of the community and respond to homeowner inquiries in a timely manner.
Carry out budgets and an annual audit
Another responsibility of a HOA management company is to guide the board through preparing an annual budget and audit reports on behalf of the homeowners’ associations. They act as an independent certified public accountant, thus preventing the board members and managers from embezzling funds.
Accounts receivable management
A professional HOA management firm will set out procedures and policies to ensure that notices sent to delinquent owners are compliant and owed payments are collected on time. The company also carries out other debt management duties such as billing, reporting delinquent accounts to the board, initiating legal action for delayed payments and working with a HOA attorney when coordinating legal action.
Carry out site management
A HOA Management Company also provides a unique approach to property management by assisting associations that require on-site management services. The tasks of a community association manager on-site include overseeing the progress of maintenance issues, inspecting for rule violations and coordinating various board-approved actions. They also ensure architectural modifications such as lawn care and the refurbishment of parking lots are completed effectively and within the stipulated period.
Offer accounting services
Homeowners’ associations routinely face many accounting challenges. A HOA management company has experienced accountants who ensure HOA budget and community finances are accurate. Their duties within the management firm include estimating maintenance costs, managing bank accounts for the community, reviewing monthly billing for community dues, and creating monthly financial statements in a timely manner. They also carry out other accounting tasks, such as record keeping on all accounts receivable.
Managing vendors and insurance issues
HOA managers are responsible for hiring and firing vendors on behalf of the association. Other than managing vendors, the association’s board of directors can request HOA managers to execute insurance matters on behalf of the board. However, the final decisions regarding insurance matters are made by the board of directors.
The board is in charge of decision making while a HOA management company fulfills or oversees the implementation of those decisions and does all tasks delegated by the association’s board. They may include handling administrative services, accounts receivable management, site management and accounting services.
Hiring a HOA management company you can rely on
At ACCU Inc., we believe communities can be more sustainable if homeowners, homeowners’ associations and HOA management companies recognize their responsibilities and work hand in hand. If you’re a member of a community homeowners’ association, we can help you reduce the stresses and intricacies that come with HOA management. Feel free to contact us to learn more about our homeowner services.