If you own a condo, apartment, or a building that shares community ownership, you will likely be familiar with the responsibilities of an HOA. And if you’re familiar with the responsibilities of an HOA board, you will no doubt understand how time-consuming these responsibilities can become.

HOA board members work on a volunteer basis, which makes it difficult to create and enforce policies. HOA management companies help these board members focus on their most important responsibility: creating policies. Your HOA board members should decide how to deal with fees, maintenance requests, ARC requests, and HOA finances and audits. However, a reputable HOA management company will be able to facilitate and enforce these policies. 

HOA management companies will be able to carry out maintenance requests in the most efficient way possible. They will facilitate board member and homeowner communication and they can simplify the processes by which governing policies are enforced, but they cannot create the policies themselves. That responsibility falls squarely on the HOA board members’ shoulders.

Continue reading to learn more about the differences between an HOA board and an HOA management company, such as Integrated Mountain Group.

What Is the Difference Between an HOA Board and an HOA Management Company?

Typically, HOA board members work closely with their HOA management company for associations. However, respective department roles vary. To establish a healthy working relationship between the two parties, roles should be clearly divided. This prevents either department from either double-dipping into the other’s responsibilities or miscommunications occurring that result in damaging oversights. 

To prevent miscommunications from occurring, each party should identify the duties they must carry out themselves from the responsibilities that could go either way. For example, despite the help of an HOA management company, there are certain responsibilities an HOA board must fulfill and vice versa. 

What Are HOA Board Responsibilities?

Property owners typically take care of their own premises. Shared properties, on the other hand, should be the responsibility of the HOA board. You can consider community pools, parks, lobbies, signs, and the building’s shared walls and pipes as part of the HOA board’s responsibilities. 

These community aspects also apply to single-family homes and townhomes. In condos, the HOA board’s duties will extend to the shared properties, such as roofs, hallways, and parking lots. HOA board responsibilities might seem simple upon first glance, but there is a lot of administrative work involved in the maintenance of these properties. The HOA board also has to manage the annual budget, hire and fire vendors, carry out maintenance projects, and enforce agreements. 

When an HOA begins, they should create legal documents that clearly state the responsibilities they are required to fulfill for the tenants of the property. HOA boards can also perform fiduciary duties. HOA board members are selected on a volunteer basis by a voting process and they do not receive a salary for their position. 

What Are the Responsibilities of an HOA Management Company?

As these responsibilities suggest, there are many aspects to running a successful HOA. Though some smaller associations can operate with little issue, it is common practice for HOA boards to bring on an HOA manager or management company to help with the day-to-day operations. Though the HOA board should retain all decision-making capabilities, the HOA management company can help facilitate those decisions and put standard operating procedures in place that ease the burden from the HOA board. 

HOA management companies are primarily there to assist with administrative procedures, executive board decisions, and resident communications. The board handles the creation of policies, fine schedules, etc., while the HOA management company facilitates those practices. 

Because HOA management companies don’t actively create the policies that govern an HOA, you can consider them an advisory service. For example, if you hire an HOA management company for financial reasons, the HOA management company will not actually perform bookkeeping or compliance measures. They will outsource these responsibilities to a reputable accounting agent who brings cost benefits. 

HOA management companies can also help facilitate maintenance, though they won’t complete the maintenance themselves. Instead, they identify the most trusted vendors and ensure the completion of your maintenance requests in a timely, efficient manner.

Who Is Responsible? The HOA Board or HOA Management Company?

Below, we provide a comprehensive breakdown of the entity responsible for each task associated with HOAs.

Fines and Late Fees

The HOA management company shouldn’t have decision-making authority over your HOA’s policies and financial decisions. Your HOA management company should be able to process fines and enforce the late fee policy. They will be able to send late notices to homeowners but they should not have the right to waive any fees. 

Rules and Policies

HOAs depend on rules and regulations that govern their ability to run the community efficiently. Both homeowners and board members must adhere to the regulations created by the HOA. They can also submit reporting violations to the board. However, the company cannot use their discretion to forego the rules for homeowners for certain violations. 

Maintenance Requests

Homeowners’ associations receive frequent maintenance requests from homeowners. HOA management companies will take care of the maintenance requests from homeowners and send requests. Once the board approves or rejects a request, the management company will be able to send it to the appropriate channels for completion. 

ARC Requests

When homeowners want to make architectural changes to homes, they have to submit an ARC request. ARC requests exist so the HOA board can approve or deny requests and make sure they align with the HOA’s governing documents. The HOA management company can ensure the homeowners adhere to the documents and corresponding documents. 

HOA Finances and Audits

Some HOAs let their HOA managers sign checks on the board’s behalf. As a precaution, the board should impose an amount limit for managers or management companies. Any check beyond that amount should go to a board member The board must also hire a third-party or independent CPA to perform financial audits. Some state laws, but not all, require financial reviews. Even if your state doesn’t have any laws in place, you should audit your finances and the board can arrange the audit instead of the management company. 

HOA FAQs

Is a Property Management Company or an HOA Management Company Part of the HOA Board?

While the property management company might have some power to enforce the board’s policies, they do not have the authority to make decisions. Policy-making responsibilities fall squarely on the board’s shoulders. 

Clearly Define the Differences Between an HOA Management Company and the HOA Itself

As an HOA, one of the most important things you can do before you hire an HOA management company is clearly define their responsibility. HOA management companies cannot create policies. They can only facilitate existing governing documents and regulations. They will not be able to carry out your compliance and bookkeeping obligations but they will have a network of reputable vendors they can outsource these services to. 

HOA boards might be tempted to delegate decision-making responsibilities to an HOA management company. It’s up to the board to decide what governing policies they institute. The benefit of an HOA management company is they find the best way to enforce and carry out these responsibilities. 

At Integrated Mountain Group, we believe your HOA board should be able to focus on the underlying governing policies. You should be able to make decisions and you shouldn’t be forced to enforce those decisions. Whether you’re looking for the best way to carry out maintenance requests, compliance issues, or need a company to handle the administrative tasks associated with an HOA, we’re here to help. 

Contact us today to learn more about what HOA management companies can do for your board.