It's important that neighborhood residents understand the different roles of the Home Owner's Association and the Property Management Company. Both are working for the good of the neighborhood, they simply have different jobs. A homeowner's association focus is mainly on making good decisions on behalf of the organization, while the property management company is primarily employed to oversee management, maintenance and communication. Here is a specific look at the roles that each entity typically plays.
The Homeowner's Association (HOA)
The HOA generally operates with a board of directors, typically consisting of at least a president, secretary and treasurer. This board has a fiduciary relationship with the association's members. The HOA's primary concern is to make sound decisions for the good of the neighborhood association. The HOA's board of directors has several responsibilities:
- Updating members on HOA information
- Setting regulatory rules for the neighborhood
- Maintaining property to preserve property values and
- Oversight of HOA finances, like collecting assessments.
The Property Management Company
The property management company has several areas of primary responsibility.
Many property management companies are responsible for collecting dues and ensuring that bills are paid in a timely manner. The company also files appropriate tax forms. Some companies prepare draft budgets for the HOA's board of directors. A property management company should also produce financial statements for the HOA.
Property Management Companies can maintain and update membership files and records for the HOA. They can also be responsible for processing applications like the Architectural Control Committee.
The property management company can keep lines of communication open by responding to calls and electronic communication from residents. They also send notices of meetings to residents.
Maintenance and Management
The property management company is responsible for the hiring, supervision and termination (if necessary) of association employees. They also negotiate contracts with the board's approval and then monitor those contracts, particularly for things like custodial or landscaping services. The company is also present to handle emergencies when they arise.
With proper knowledge of the roles that each organization has, neighborhood residents know where to turn for different needs and situations. Together residents, directors at the homeowner's association and the property management company can resolve any issues and make any neighborhood a safe, happy place to live in. Talk to the professional team at Gassen today to learn more about how they can work with your homeowner's association to make your neighborhood operate even more effectively and efficiently!