HOA property management companies separate from a homeowner’s association are usually hired to assist and guide the association through the execution of their duties as a board of directors. Typical responsibilities assigned to an HOA property management company would be the collection of dues, oversight of all pertinent contractors and suppliers working on projects in the community, processing paperwork relative to homeowner complaints and other problem-solving measures that are best handled by professional personnel. Although a board can be effective insofar as it makes use of individuals with a vested interest in the community’s success, not all boards are comprised of individuals with the professional skills to oversee all the duties of a homeowners’ association. HOA property management companies contracted by a homeowner’s association are considered independent and will be paid based on the guidelines set forth in their contract with the board of directors and the members of the HOA.
Whether the supervision of a homeowner’s association is handled by an HOA property management company or nothing more than the board, assessments and dues are almost always part off the property management plan. The budget that has been established by those involved in the community planning will lay out an estimate of anticipated expenses. Once the budget has been set, it is up to the board of directors to determine how much money will be needed to meet all of the functions considered necessary over a billing period. HOA property management companies who supervise a board or assist with common HOA duties may find that the board is inflating prices or undercutting the amounts necessary for a productive community. When a board of directors miscalculates or mismanages the funds allocated for homeowner’s association dues, problems can arise in the short term and affect the reserves for future operations.