3 Key Benefits of Hiring an HOA Property Management Company

Homeowners associations or HOAs are generally established for two primary reasons: to take care of the community that it serves and to ensure that community standards are followed to maintain property value. These two general reasons may look simple enough on the outset but looking deeper, each of these entail a series of tasks and processes, often tedious and complicated. How can an HOA management company help?

Whether the HOA is a newly established one or it’s been around for awhile but basically run by the Board of Directors and board members, hiring the services of an HOA management company will take on most of the burden. Here are a few key benefits to having an HOA management company help with operations:

1. Fulfill HOA duties and functions on a budget

One of the key takeaways to having an HOA manager take care of the association is that they can fix your finances. This means, once they come onboard, they can immediately check your books to first see if these are balanced; and secondly, to see which areas of operations you’re bleeding money and which ones need immediate attention (and funding). They can help you come up with a workable budget for HOA operations.

2. Serve as an all-around go-to person

If a homeowner has a complaint or concern, or needs something fixed, they can go to the HOA manager to discuss their issue. A key benefit to having an HOA manager onboard is that they have the time to be present for the community. Unlike with the HOA Board’s directors and members who have day-to-day duties and responsibilities who aren’t always available, an HOA manager can be there with one phone call.

The same goes for emergency situations, whether repairs, medical emergencies or natural disasters, a representative from your HOA management company will be there to assist or take charge in some instances.

3. Enforce rules and regulations

One of the biggest challenges for HOAs is getting every homeowner within their jurisdiction to follow the rules. There will always be one or two who will try to bend the rules, and often, they can be a cause for disputes and disagreements between neighbors. As a third-party overseer, the HOA manager can enforce rules and regulations without worrying about stepping on someone’s toes (or ego) or hurting the feelings of a neighbor. They are the neutral player that every HOA needs to ensure that regulations are strictly followed.

In a word, an HOA manager can make your HOA more effective.

5 Ways an HOA Can Effectively Save Money

Homeowners associations or HOAs collect fees from its members to have funds for its operations. But regardless of the size of the HOA and the total amount of fees collected each month, there will be occasions when the association will fall short on funds, especially funds for unforeseen and unplanned expenses. So how can your HOA save money? So Cal Enterprises shares some tips:

Conserve energy

The bulk of expenses for HOAs goes to utility bills, which are primarily electricity and water bills. Here are ways to conserve energy:

1. Turn off and unplug equipment

Even if you’re not using a piece of equipment, it is still using up power by simply being plugged in. Make a checklist of all the equipment in common areas and evaluate their usage. You can create a schedule for usage of specific equipment, too, so they all don’t need to be simultaneously plugged in.

2. Discuss energy conservation programs and options with your provider

If you haven’t yet asked your energy provider about their conservation programs and options, now’s the time to do. The government usually gives incentives or credits to energy providers that help conserve energy, which means there’s a good chance that your provider has one or several. If they don’t, find out if you can switch providers. If you can, shop around for one in your area that has such credits or incentives.

Conserve water

Another huge expense for HOAs is its water bill. Here, you have several ways to conserve water:

3. Schedule your sprinkler system

There is a common misconception about sprinklers: that if you set them to automatically turn on and water the lawn for short periods at small intervals several times per week, you’ll be saving more. Truth is, the more often you turn on the sprinkler system, the more water it uses up even if you did set it to work only for short periods at a time. The more cost-efficient system would be to turn it on fewer times fewer week but working for longer intervals.

4. Utilize a rain gauge

If you haven’t installed a rain gauge, it’s high time that you do. Rain gauges save water that you can be used for the HOA’s irrigation system. Utilizing these water conservation gadgets can significantly cut your water usage.

Re-evaluate service contracts

5. Update your contract with vendors

If your HOA has been around for a good number of years, you may have forged a good working relationship with select vendors. Check your current contract with each one and discuss new terms you can both agree on that can help you save on professional fees and supply costs.

These money saving tips can help you get started on your campaign to lower your HOA expenses for a more efficient HOA management and operations.

HOA Management and Condo Management

For multi-family housing, which is usually an apartment building or a condominium, may be regulated by a homeowner’s association (HOA) and managed by a property manager or a building administrator. The HOA itself may be managed by an HOA management company. The setup varies; and it is usually upon the discretion of the unit owners, real estate developer, and the HOA.

Assuming the condo community is managed by an HOA, which in turn is managed by an HOA management company, the most common question that unit owners and tenants ask is if an HOA management company is necessary, thinking that hiring such services means higher association dues. The answer is “yes,” and here’s why: the association’s finances are better managed.

HOA finances


One of the biggest challenges that HOAs deal with on a regular basis has to do with finances; specifically, budgeting and reserves. How do they ensure that there is always enough for emergencies, from unforeseen equipment breakdowns to natural disasters, for instance? How can they make sure, too, that they have enough money for daily operations? From landscape to building maintenance, and other services needed to ensure the safety, comfort, and security of the community

States generally have specific regulations regarding HOA or association budgets. For instance, the HOA may be required by local regulations to update their budgets annually, taking into account financial challenges experienced the previous year.


For emergencies, HOAs should have a reserve fund. Unforeseen circumstances that may require funding include emergency equipment repairs or replacement, unscheduled facility and utility upgrades, and disasters and accidents (such as flooding, and fires).

Usually, association dues only cover operational costs and money that goes into the reserve fund is usually “charged” as an additional expense or fee. This additional burden isn’t usually welcomed “with open arms,” as one could imagine. The better alternative is to hold a fundraiser.

The challenge here isn’t the type of fundraising to hold but rather, the amount of money that the reserve must have at all times. Financial forecasting is needed here.

Professional assistance may be called for

Understand that homeowners/condo associations are run by volunteer residents, which means they have a life outside of the association. They have day jobs, families, and other responsibilities to take care of. What this translates to is basically overlooking and neglecting association duties without meaning to. And the HOA aspect that usually takes the brunt is finances.

An HOA management company usually has an accounting/financial expert that oversees the HOA’s finances. In general, HOA management companies ensure that the association is fully functional, serving the interest of both the community and its members.

A Primer on Homeowners Association Rules and Regulations

Homeowners associations or HOAs are there to serve the homeowners and the community. Unfortunately, they have gotten a bad reputation because of misconceptions and misinformation. And the most common (and reputation damaging) misconceptions about HOAs is that they are too restrictive; too strict to the point of being “dictatorial.”

But if one were to shift their perspective and truly see HOAs from the point of view of an entity tasked to take care of the community and its homeowners, you’d probably gain a better understanding of why rules and regulations are imposed in the first place.

Here are a few things to know about :

The Board of Directors has a say in the rules and regulations

HOA rules and regulations are generally first drafted, decided on, finalized, and implemented by the property developer. When the HOA is turned over to the homeowners, there will be an election for the Board of Directors and members of the Board will then be the ones to implement these rules. They may also vote to add, amend, or remove certain stipulations. Board members are homeowners within the same community as well, which means they understand the sentiments and needs of homeowners.

The HOA preserves the community

Within a community, specific standards are expected to preserve the community’s good reputation. There are guidelines for public behavior, parties, street parking, use of common areas and facilities, structural design, and such. All these are meant to maintain a certain standard of living meant to preserve the community’s reputation and way of life.

HOAs may affect property value

In relation to the above, how well or how poorly the HOA preserves the community may directly affect property value in the area it covers. If your HOA’s rules and regulations are well-implemented, maintaining community standards will be easy and this benefits your property as well. While it is not a “sure-fire” way to protect or enhance property values, they certainly won’t negatively impact others’ first impression of the homes within your community if they are followed. And this could be good if you plan to sell your home in the future.

Adversely, if the HOA doesn’t do its job, the community’s overall value may decrease, which could directly impact your home’s value.

Do you have more questions regarding homeowners associations? Please feel free to send your questions online or call So Cal Property Enterprises, Inc. at (888) 828-9444; we’d be glad to hear from you.

Hiring a property management company? Be wary of these three red flags…

Property owners can earn a good income from their property provided they have the right property manager looking out for their best interest. One of the biggest and most common mistakes that property owners make is hiring a property management company in haste. In their desire to earn from their investment as soon as possible, they fail to realize that entrusting their investment to the wrong property management company can turn their asset into a liability in a matter of months.

Protect your investment; choose your property management company wisely. Here are a few red flags to watch out for:

1. The company has a real estate “side business”

The company’s primary business may be property management but they have a side business: selling real estate. Why is this a red flag? First off, property owners think that a property management company that also sells real estate is the perfect entity to oversee their property because they have a deeper understanding of the business, both from the perspective of the owner and the seller. Unfortunately, it’s not as black and white as it appears.

Usually, property management companies like this offer to manage your property so they can have first dibs on it if you decide to put it on the market. So really, their interest is more on getting their hands on your property solely to earn from it, both as the property manager and broker. It’s a win-win for them, not so much for you.

2. They don’t have a *good* network of vendors and suppliers

When your property gets damaged by the renters or it needs emergency repairs, who do they turn to? If they only know one or two vendors, suppliers, and contractors to do maintenance jobs, you could be looking at long delays caused by emergency repairs. Also, you have to wonder why they don’t have a good network of contractors ready and willing to take on jobs at a drop of a hat. Could it be a lack in business ethics? Or perhaps they also try to get a commission for every commissioned job? There could be a number of reasons but one thing’s for sure: your property could end up more damaged than managed if you hire this type of property management company.

3. Frequency of tenant eviction

This red flag isn’t something that property owners even consider asking about, but not doing so could mean having long periods of vacancy on your property, which means potential income lost. In a word, a property management company that seems to be in the habit of evicting tenants mean only one thing: they do not screen applicants thoroughly.

Take your time choosing your property management company. A little bit of effort could save you future stresses and headaches.

5 Things You Should Know About Homeowners Associations

Before you purchase or move into a new home, you should check first if your house is part of a community that belongs to a homeowners association (HOA) because this will spare you from surprise dues or fees that you’ll be asked to pay monthly (or at regular intervals), and you’ll also know things that you’re allowed to do and what you shouldn’t do if you want to avoid trouble.

To help you get started, here are five things you should know about homeowners associations, with a particular focus on the one thing that could affect your lifestyle: fees.

1. Fees vary from HOA to HOA

HOA fees or dues largely depend on two things: location and services. As with real estate, the location of the HOA greatly affects how much each HOA member will be charged for their regular dues. Suffice it to say that the more expensive the location, the higher the fee.

Additionally, the amenities and services that the HOA provides dictate the amount of HOA dues. Fees could be anywhere “between $100 and $700 per month.”

2. Special assessment fees may be required from time to time

Depending on the HOA’s financial structure, homeowners may be charged an additional assessment fee from time to time. Essentially, these charges may be due to major repairs that need to be done on the community’s common areas or facilities and the HOA doesn’t have enough funds to cover the expenses. Check your HOA’s financials for such emergency expenses to see if these are already covered in the monthly dues.

3. Mortgage lenders consider HOA fees

Believe it or not, mortgage lenders (banks, generally) will look into the HOA and your fees before approving your mortgage application. Mortgage lenders consider how the HOA dues could affect your finances overall, seeing these as critical factors that could affect your ability to pay your mortgage dues. In general, the higher the HOA dues, the lower your mortgage loan (so you’ll have a lower monthly mortgage due).

4. Covenants, Conditions & Restrictions

One of the most crucial factors about HOAs that homeowners neglect to check before moving in is the Covenants, Conditions & Restrictions (CC&Rs) document. The CC&Rs basically dictate what you can and can’t do on your property, and the community. Some HOAs have exaggerated restrictions like dictating the accepted paint on your home’s exterior walls. Be sure to check every condition and restriction to avoid being penalized or worse, kicked out of the community.

5. Conflict resolution

In relation to the above, check to see how the HOA resolves disputes or conflicts between neighbors, as well as the fines or penalties given for violations of the rules. As mentioned above, homeowners may be charged a fine or, in extreme scenarios, kicked out. Some HOAs even attach a lien on, or foreclose, the property.

Feel free to send your questions online or call (888) 828-9444 for questions or inquiries.

10 Fascinating Facts About HOA Communities

Homeowners associations (HOAs) have become increasingly popular over the recent decades. With well-maintained amenities and shared areas, rules that benefit property owners, a safe, welcoming neighborhood that’s perfect for raising a family, and more, there’s a lot to love about living in an HOA community.

There’s more to HOA communities than meets the eye, however. Below, we list down 10 little-known yet fascinating facts about HOA communities.

1. Of 92 percent of HOA community residents, 70 percent consider living in such communities a positive experience.

2. 90 percent of HOA community residents have a good relationship with their association’s board of directors. 88 percent are of the opinion said board endeavors to serve the community’s best interests.

3. 76 percent of such residents believe the rules and regulations of their HOA enhance and protect the value of their property. This is because HOAs usually don’t allow homeowners to make extreme aesthetic or structural modifications to their homes.

4. 22 to 24 percent of United States citizens live in HOA communities.

5. Every year sees the establishment of over 8,000 new HOA communities across the United States. In fact, there are now an estimated 344,500 communities governed by HOAs. This is an enormous rise in the number of such communities in the country, especially considering there were only around 10,000 of them in the 1970s.

6. Homes in HOA communities are often higher in value than homes in non-HOA communities. As of 2017, HOA community homes have a value of $5.88 trillion.

7. There are currently between 7,000 and 8,000 HOA management companies in the United States. They provide employment to between 95,000 and 100,000 people.

8. HOA communities boast a multitude of amenities, including parks, basketball courts, tennis courts, football fields, swimming pools, barbecue pits, walking trails, clubhouses, playgrounds, playrooms, gardens, cafes, business centers, and more. You can also expect recycling bins, cooking classes, art workshops, pet-grooming services, and the like.

9. Today, many HOA communities encourage eco-friendly solutions to common issues, such as solar panels and the use of energy-efficient appliances. They also prioritize the development of green systems, such as water irrigation that prevents the wasting of water and drastically lowers your water bill.

10. HOAs host community activities, gatherings, and festivals to give residents opportunities to form friendships with their neighbors. This strengthens the sense of community within the neighborhood.

If you’d like to know more interesting facts about HOA communities, please don’t hesitate to contact So Cal Property Enterprises, Inc. through its corporate website or give us a call at (888) 828-9444. We’d be happy to hear from you!

What Does an HOA Management Company Do?

When a Home Owner’s Association (HOA) is unable to effectively juggle managing a corporation and ensuring a community’s needs are met, it turns to an HOA management company for assistance.

An HOA is generally responsible for the maintenance of the community’s amenities and other shared spaces. It also enforces rules, collects fees, covers continuing expenditures, and amasses the funding for larger expenses. These functions are overseen by the HOA’s board of directors, which is comprised of volunteers from the community. As you can see, the board has a multitude of obligations to attend to.

Thankfully, HOA management companies are licensed to provide much-needed aid to HOAs. Read on to know the responsibilities of such companies, and why they can be of great benefit to HOAs.

Neighborhood management

The failure of homeowners to observe the HOA’s rules can lead to poorly maintained facilities, unkempt parks, and more—all of which can cause a reduction in the community’s value.

Thankfully, HOA managers help the association enforce their rules in an effective manner. Their responsibilities include conducting investigations regarding issues related to maintenance and rule violations; ensuring service providers adhere to contractual specifications when caring for pools, lawns, and other amenities and common areas; and coordinating tasks authorized by the board of directors.


HOA management companies also provide expert administrative services. Through adept communication and organization, managers excel at supervising operations designed to maintain and improve the state of the community.

In addition to assisting the board in their preparation of the yearly financial plan, HOA managers can provide regular management reports; schedule and participate in board meetings; communicate with homeowners regarding their specific concerns; and help enforce the community’s rules as mentioned above.


Most HOAs know the handling of association and community finances can be a complex affair. HOA management companies can help simplify matters by managing the community’s bank accounts; providing accurate estimates of expenditures related to community maintenance; generating financial statements on time; reviewing monthly fees; offering direction when it comes to preparing the board and community’s long-term financial plan.Of course, not all HOA management companies are the same. While the above list discusses their basic services, you can expect different companies to have other ways of contributing to the maintenance and betterment of the community.

If you’d like to know more about the responsibilities of HOA management companies, please feel free to contact So Cal Property Enterprises, Inc. through its corporate website, or give us a call at (888) 828-9444. We’d be glad to hear from you!

Top 4 Questions to Ask an HOA Property Management Company

One of the best things that an HOA’s Board of Directors can do for the association and its members is to hire the services of a property management company as they have the experience and expertise to handle not only the daily responsibilities of the homeowners association but more importantly, to expertly handle challenges as they come; which could include crises and disasters.

With that said, it’s important to be careful about the property management company you hire as their professionalism could either make or break your HOA. Remember that they are there to help you handle the responsibilities of an HOA. And on that note, here are the top four questions you should ask during the selection process:

1. What is the scope of your services?

First off, know that not all property management companies provide the same services, or if they do, the scope of each specific service may be limited compared to others. It’s important to know all the specifics of the services they offer, so make sure to write down the particulars you’d like to focus on and discuss each one with the property management company as thoroughly as possible.

2. How long have you been serving HOAs?

Often, longevity in any business and industry translates to good service. A business wouldn’t have survived for as long as it did if consumers/customers do not trust them and do not find their services/products reliable. This doesn’t mean however that a new player does not deserve to be considered. It’s always best to keep your options open, hence; the thorough vetting process.

3. Who are the professionals behind your management team?

There are two things to determine here. First, the type of professional service, i.e. accountant, finance expert, an on-site contractor for auditing HOA maintenance, and so on. Next, the actual professionals assigned to various aspects of HOA management. This should entail meeting some of them face-to-face for some of your questions.

4. How many HOAs does each team handle?

For your HOA to receive optimal services from the property management team assigned to you, you need to make sure that the team, especially the lead property manager, does not have too many jobs on their plate. You will need a property management team that will be available to you 24/7. While you may not need them on-site all day, every day, there are times when you need to contact them at ungodly hours for emergencies. They should be accessible to the HOA anytime.

If you wish to learn more about the services of a property management company, please feel free to send your questions online or contact So Cal Property Enterprises, Inc. at (888) 828-9444.

Why should an HOA hire a property management company?

First, what is an HOA?

Briefly, a homeowners association or HOA is a non-profit organization established (usually by the developer and then passed on to the homeowners) to oversee the management of a particular residential community. An HOA covers condo units, single or multi-family homes, townhomes, and other residential property.

The HOA is primarily responsible for the following:

  • Ensure that the community/neighborhood maintains a certain standard to make it up to par with other premier communities in the state and across America
  • Reasonable fees are imposed on the homeowners, and dutifully collected on the agreed schedule
  • Maintain peace and order in the community
  • Ensure everyone’s safety and security within the community at all times

How does an HOA accomplish all these (and more)? Through bylaws and conditions, which are more formally known as Covenants, Conditions & Restrictions (CC&Rs). The stipulations covered in the CC&Rs may differ from one HOA to the next so homebuyers need to review these carefully before purchasing or leasing the property.

What does a property management company have to do with an HOA?

Most residential real estate today belong to an HOA, which means homebuyers and future homeowners will automatically become a member of the HOA once they decide to purchase or lease the property.

In a nutshell, a property management company will provide a professional team to oversee the day-to-day activities and responsibilities of an HOA. They help ensure that the HOA is fully serving its community according to conditions stipulated and itemized in the CC&Rs.

A property management team will especially be helpful in addressing complaints and concerns in a timely manner, which basically means as soon as they come. In doing so, they are preventing these issues from escalating and possibly turning into a costly legal dispute.

Here are other ways a property management company may be able to help an HOA:

  1. Provide appropriate training for the Board of Directors, especially on finance and accounting
  2. Review CC&Rs and suggest edits, updates, or removal of certain stipulations as deemed fit and necessary
  3. Contact contractors, suppliers, and vendors for the HOA and its members, whenever necessary
  4. Vet potential tenants for rental properties or potential buyers for houses for sale covered by the HOA
  5. Ensure that members of the Board are dutifully performing their particular tasks, and assisting them if and when necessary

If you wish to learn more about how a property management company can help an HOA, please feel free to send your questions online or contact So Cal Property Enterprises, Inc. at (888) 828-9444.