As of 2021, HOAs managed about 358,000 neighborhoods in the US.
Some of these handle everything themselves. Others get assistance from HOA management services. They can get a lot done when working together, but many people don't actually know what the difference between the two is.
In this guide, we'll explain the differences between HOAs and HOA management services in Inland Empire, California. Keep reading for more.
Responsibilities of the HOA Board
A homeowners association board is typically made up of members of the community. It includes a president, vice president, secretary, treasurer, and potentially more.
Residents are responsible for taking care of their own properties. Common areas, however, are the responsibility of the HOA board.
This includes spaces like swimming pools, community parks, and clubhouses. It also extends to elements of shared properties such as hallways and parking lots.
The HOA board creates all policies and makes all decisions on fines and late fees. They also review requests from any residents relating to maintenance and upgrades.
When it comes to finances and audits, the HOA board can allow HOA managers some degree of control. With that in mind, they should also impose limits on how much managers can spend.
They must hire a third-party CPA to perform any audits if needed. They should oversee these audits rather than allowing HOA management to do so as this helps to discourage fraud.
Board members may be tempted to delegate important decisions to HOA managers. They need to remember that their duty is to the community, so they should always deal with such matters themselves.
Responsibilities of HOA Management Services
An HOA management company is an external service provider that can assist an HOA board. Smaller communities are easier to manage, so might not need the help of an HOA management company. Larger communities, however, are far more involved, so such assistance might be essential.
Their purpose is to support the HOA board by helping with various day-to-day tasks. They act more as advisors to the board, rather than leaders.
While the HOA board makes decisions about fines and fees, an HOA manager processes them. They can also establish late fee policies, and send notifications to homeowners regarding any fines.
HOA management services have no control over any rules or covenants, conditions, and restrictions (CC&Rs). They only have the capacity to issue letters and correspondence to residents relating to them.
When the HOA board approves maintenance requests, an HOA management company will then organize the work. This involves communicating with contractors to find someone suitable for the work. HOA managers have good networks, so they can usually find good deals from reliable contractors.
Does Your Community Need HOA Management Services?
The answer depends on your community and how the HOA board is currently managing it. HOA management services can be incredibly helpful. They allow the HOA board to do a better job, making things better for residents.
PMI Inland Empire offers a range of services in Inland Empire, California, including HOA management. Take a look at our Association Management page to find out more about how we can help your community.
