It’s easy to muddy the waters with regards to a homeowners association (HOA) and property managers. They are both involved in the management of housing communities. It might be helpful to create an understanding of both HOAs and property managers to see how the functions of each are different. In most cases, they work together, but sometimes they may come into conflict. This information should be useful to property owners, property management companies, and tenants who live in a community that is governed by an HOA.
What Are Homeowners Associations?
Neighborhoods, subdivisions, and condo complexes contain lots of housing units that are owned by many different owners. At the same time, homeowners may need to share the responsibility for certain things. They may also share expectations for the way that their neighbors will maintain their properties. Thus, these communities form HOAs to develop and enforce the rules (known as covenants, conditions, and restrictions, or CC&Rs for short) that all property owners need to abide by.
The individuals who belong to these organizations also own property in that community. While all HOA members may propose and vote on rules, an elected HOA board usually has the final responsibility for ensuring that rules get kept and other responsibilities get met.
Typical HOA responsibilities include:
- Maintaining common areas, like playgrounds, clubhouse, parks, and swimming pools.
- Setting and collecting dues to pay for things like maintenance of common areas and security.
- Architectural control to ensure that a property owner doesn’t do something to his property that will have an adverse effect on other property owners.
- Setting budgets for the items that HOA dues pay for.
- Obtaining insurance for common areas.
- Hiring staff and contractors.
Understandably, the HOA doesn’t physically perform all of their responsibilities. For example, they may hire security people, secretaries, and maintenance crews. In some cases, overseeing all of the work requires a separate property manager to assist them. To help with all of the tasks involved, an HOA may also hire a property manager or property management company.
What Do Property Managers Do in a Homeowners Association?
There are two different situations when a community may have both property managers and an HOA. In the most commonly discussed case, the property management company works for the HOA. In another case, property owners may own some houses or condos in a community that also has owner-occupied units. In this second case, the property owners and their managers are just property owners with the same status as any other owners. If property owners occupy their own housing or lease it to tenants, they still have the same responsibilities to the HOA.
Property Managers as Employees of the HOA
Home Owner Association members may volunteer for their positions as an investment in their community. As volunteers, they may not have time to oversee all of the day-to-day obligations of the board. In this case, an Home Owner Association might hire a property management company to assist them.
Property manager’s duties can vary and may include overseeing contractors, communicating with residents, collecting dues, and handling emergencies. As employees of the HOA board, property managers report to them.
Property Managers as Owners Within the Community
The property managers for leased housing units may make sure that Home Owner Association dues get paid if this cost is simply included in the rent. Still, they need to make certain their tenants don’t violate other rules. There may be guidelines about maintaining lawns, how to handle garbage and behavior in common areas. It’s prudent to include a clause in the lease about adhering to HOA rules and to make sure that tenants know the guidelines, rules, and regulations.
Many HOAs Have the Power to Enforce Rules
Typical HOAs will issue warnings if rules get violated. However, they do have the legal power to enforce their rules. For example, an HOA can put a lien on a property if the Home Owner Association dues don’t get paid. If a lawn doesn’t get mowed after a warning, they might send their own landscapers and charge the property owner a high fee.