We often are asked about services homeowners perceive to be the responsibility of the management company. In actuality, contracts vary from one HOA to another depending upon the HOA’s budgets and needs.
The duties of the management company will be outlined in the Management Agreement and often involve both administrative and site management services, but not always. Depending on the needs of the association, you may have a financial only contract with your management company, or a contract by which outside contractors manage the association’s grounds.
- With a financial-only arrangement
- Management of the reserve fund (savings account)
- Accounts payable
- Budget prep
- Tax prep
- Dues and collections management
- Resale disclosures
- With a full-service arrangement some of the typical items the management company is responsible for include are;
- Property inspections (frequency determine by contract)
- Contractor bidding and supervision
- Policy/rule enforcement
- Dedicated community manager (onsite or offsite as per individual HOA needs and contract)
- Handyman services
- 24/7 emergency services
- Full-compliment of financial services (as noted above in financial-only list)
Each HOA determines the level of service they would like to receive and contracts with the management company and the associated fees for services are dictated by the contract.