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:
- Provide appropriate training for the Board of Directors, especially on finance and accounting
- Review CC&Rs and suggest edits, updates, or removal of certain stipulations as deemed fit and necessary
- Contact contractors, suppliers, and vendors for the HOA and its members, whenever necessary
- Vet potential tenants for rental properties or potential buyers for houses for sale covered by the HOA
- 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 951-270-3700.