Understanding the Role of the HOA Board of Directors in Collaboration with a Management Company

Homeowners associations (HOAs) often rely on a board of directors to guide community decisions and maintain property values. When an HOA partners with a management company, the relationship between the board and the management team becomes crucial. Understanding the distinct roles and how they work together helps ensure smooth operations and a thriving community.

HOA community clubhouse with well-maintained gardens

What the HOA Board of Directors Does

The HOA board of directors is a group of elected homeowners who volunteer to represent the interests of the community. Their responsibilities include:

• Setting policies and rules that govern the community, such as architectural guidelines, parking regulations, and noise restrictions.

• Approving budgets and financial plans to manage community funds responsibly.

• Hiring and overseeing vendors and service providers, including landscaping, maintenance, and security.

• Communicating with homeowners to address concerns, share updates, and build community spirit.

• Enforcing community rules fairly and consistently to maintain property values and quality of life.

  
  

The board acts as the decision-making body that sets the direction for the community. They focus on big-picture issues and long-term planning.

The Role of the Management Company

A management company is a professional firm hired by the HOA board to handle day-to-day operations. Their role includes:

• Administrative tasks such as collecting dues, maintaining records, and managing correspondence.

• Coordinating maintenance and repairs by scheduling vendors and overseeing work quality.

• Financial management including bookkeeping, preparing financial reports, and assisting with budget preparation.

• Ensuring compliance with local laws and HOA governing documents.

• Providing expert advice on community management best practices.

  
  

Management companies bring experience and resources that many volunteer boards lack. They help reduce the workload on board members and provide continuity when board membership changes.

How the Board of Directors and the Management Company Work Together

The success of an HOA depends on a clear partnership between the board of directors and the management company. Here’s how they typically collaborate:

• The board sets policies and goals. The management company implements these policies and manages daily operations within the board’s framework.

• The board approves budgets and major contracts. The management company prepares financial reports and vendor proposals for board review.

• The management company handles routine communications. The board focuses on strategic communication and community engagement.

• The board enforces rules and resolves disputes. The management company supports enforcement by documenting violations and coordinating follow-up.

• The board relies on the management company for expertise. This includes legal compliance, risk management, and industry standards.

  
  

Clear communication and defined roles prevent overlap and confusion. Regular meetings between the board and management company keep everyone aligned.

Examples of Effective Collaboration

Consider a community where the board wants to upgrade the landscaping. The board researches options and sets a budget. The management company then solicits bids from landscapers, reviews proposals, and recommends the best fit. Once the board approves, the management company schedules the work and monitors progress. This division of labor ensures the project moves efficiently without overburdening board members.

In another case, a homeowner raises a complaint about noise violations. The management company documents the complaint and notifies the board. The board reviews the case and decides on enforcement action. The management company then communicates the decision and follows up as needed. This process keeps enforcement fair and consistent.

Why This Relationship Matters

When the board and management company work well together, the community benefits in many ways:

• Improved property values through consistent maintenance and rule enforcement.

• Better financial health with accurate budgeting and transparent reporting.

• Stronger community trust as homeowners see responsive leadership and clear communication.

• Reduced volunteer burnout since board members can focus on governance rather than daily tasks.

• Faster problem resolution with professional support and clear decision-making.

  
  

Without a strong partnership, communities risk mismanagement, conflicts, and dissatisfaction among residents.

Tips for Boards Working with Management Companies

To build a productive relationship, boards should:

• Clearly define roles and responsibilities in the management contract.

• Hold regular meetings to review performance, finances, and community issues.

• Communicate openly and respectfully with the management team.

• Seek training and education to understand HOA laws and best practices.

• Engage homeowners by sharing updates and encouraging feedback.

  
  

Management companies should also be proactive, transparent, and responsive to the board’s needs.

If your community is looking for an HOA management company in Minnesota, visit www.gassen.com to learn more about our local history and local team.