(909) 590-5951

HOA Property Management Functions

Seven Responsibilities of a Property Management Company for HOAs.

Four primary functions of a property management company.

Is the property management company the HOA Board?

What are the changes in the responsibilities for a HOA management company since Covid-19?

Incline Consultants Association Management, LLC provides professional management services to HOAs. The elected board of directors sets policies and decisions, and our role is to implement and enforce those decisions.

7 Responsibilities of a Property Management Company for HOAs

1. Billing & Assessment Collection:

A management company works as a third party that handles the financial responsibilities of billing and collecting payments from owners. During unstable economic situations, a management company can help work with delinquent owners to arrange payment plans approved by the Board. Being financially stable is very important to ensure the maintenance of the Association can be maintained. Management companies can also handle tasks such as:  

  • Billing residents.
  • Collection of monthly assessments.
  • Assist in developing payment plans with owners.
  • Handling delinquent accounts pursuant to the Association’s delinquency policy.
  • Issuing delinquent notices to owners pursuant to the Association’s delinquency policy.
  • Coordinating with the HOA’s trustee and/or legal counsel when necessary. 

Managing Agents must be thoroughly knowledgeable about the HOA’s CC&Rs (covenants, conditions, and restrictions). The management company is responsible for implementing its policies and guidelines, which are approved by the Board of Directors. The purpose is to ensure all residents comply with their CC&R and rules and regulations.

When decisions are made by the Board of Directors, a management company is responsible for ensuring all community members comply and adhere to the board’s decision. 

3. Management of Association Approved Vendors:

Managing vendors is a significant responsibility of a property management company. Vendors must have the proper license and insurance coverage to work for Associations. A management company’s goal is to see its community thrive. To make this happen, they must ensure the community is financially maintained. Management companies assist by the following:

  • Help oversee vendors’ maintenance responsibilities (ex., landscaping, common areas, maintenance). 
  • Assist in negotiating and re-negotiate contracts.
  • Develop Requests for Proposals for maintenance projects.
  • Solicit competing bids from vendors. 
  • Be the primary point of contact for vendors for the Association.

4. Mitigating Risk:

Another responsibility of the management company is mitigating risk for the Association. A property management company will address the Board regarding any potential risk by thoroughly assessing possible liabilities throughout the community. The management company also works with the insurance agent to ensure that the HOA’s insurance coverage is adequate and in compliance with State Law.

  • Reporting safety hazards to the Board of Directors. 
  • Addressing outstanding maintenance concerns could be a safety concern for the Association. 
  • Ensure all community members are well informed about any potential risks that may exist. 

5. Administrative Responsibilities:

The property management company acting under a full-service contract will act as the primary contact for the Association. Management Companies support the Board of Directors by managing the day-to-day business affairs for the Association.

  • Assists HOA with annual budget. 
  • Coordinates board meetings and prepares meeting agendas.
  • Answering phone calls, voicemails, and emails from residents.
  • Creating and maintaining reports as needed for the Board of Directors.
  • Assisting in tasks related to accounting or invoicing per Board direction.
  • Coordinates events when necessary.

6. Inspection of Property:

Every homeowner wants their neighborhood to look well-maintained. Over the past two years, residents have spent more time in and around their homes more than ever! As a result, HOA’s are receiving a higher number of maintenance requests and reports of violations. The managing agent investigates these concerns in addition to the following:  

  • Managing bulk trash and yard maintenance requests. 
  • Processing work orders for common maintenance requests.
  • Ensuring common and recreational centers are appropriately tended to. 
  • Regulating vendors (if necessary) to ensure that maintenance requests and contract jobs are correctly being made.

7. Communication with Residents:

Communication with community members is very important. Sharing information with the community and providing easy access to information for residents to see is achieved via the use of a portal website that owners and tenants are able to access at their convenience. With health and safety protocols constantly changing because of Covid-19, updating the membership in a timely manner is very important.

Four Primary Functions for a Management Company

1. Administrative and day-to-day office services:

A property management company assigns a Manager to each Association. However, a team within the management company conducts the Association’s administrative office duties. The departments are noted below:

  • The customer Service Department answers the telephone, records incoming calls, and directs the phone call to the appropriate department. 
  • Work Order Department prepares work orders at the request of residents and/or the managing agent.
  • The Escrow Department handles the document transfers for escrows or refinances paperwork requested by owners.
  • The Accounts Payables Department handles the authorization of invoices and issues payments pursuant to Board approval.
  • The Accounts Receivable Department works with the banks to facilitate the receipt of payments and ensure that they are correctly posted to the owner’s accounts promptly.
  • The Manager schedules and attends board meetings as the Board of Directors outlines.
  • The Managing Agent and/or Customer Service Department responds to owner requests.
  • Inspection Officers conduct regular inspections of the property in an effort to enforce rules and regulations in the community and identify maintenance needs for the community.

2. Accounts Receivable:

The Accounts Receivable Department is responsible for assessing and collecting the monthly assessments for the Association. Payments are sent to a lockbox. The managing agent receives this file daily and ensures all information is downloaded into the owner’s accounts. Other responsibilities include:

Manage all billing and invoices

Managing delinquent accounts

Enforcing legal documents of the association concerning assessments

3. Accounting:

In addition to being a resource for managing and assessing assessments approved by the board, a general accountant and bookkeeper are retained to maintain the accuracy of the community’s finances via monthly financial statements. The managing agent oversees the annual budget, which plays a significant role in the Association’s financial health.

  • Manage bank accounts of the Association.
  • Keep records on AP and AR.
  • Reviewing and maintaining the monthly every month. 
  • Monitor all accounting responsibilities for the reserves.

4. Regular Inspections:

An Inspection Officer is crucial to a well-run community. An Inspection Officer ensures that grounds, facilities, and other projects are well-maintained. 

  • Investigate owner concerns and provide findings to the Board of Directors.
  • Implementing homeowner rules and regulations
  • Submitting management reports monthly 

Is the property management company part of the HOA Board of Directors? 

It’s common for community members to assume that the property management company is making all the decisions. That’s far from being true. The management company’s responsibility is to enforce the community’s policies set forth by the elected Board of Directors. Management receives direction from the Board of Directors. The Board of Directors is given the authority to make policies and procedures for the members pursuant to the Association’s legal documents.

What are the changes in the responsibilities of a HOA property management company since Covid-19?

There have been many changes in the responsibilities of property management companies since the onset of COVID-19. Policy changes in the way owners access common areas require immediate attention. There has been a shift in priorities. Because of Covid 19, management companies must monitor the Covid-19 guidelines for their communities. The regulations resulted in canceling gatherings and the need to develop alternative ways of allowing people to gather by using virtual community spaces to conduct the regular Board of Directors meetings. Other significant impacts include:  

  • Social distancing requirements and disclosures. 
  • Shelter-at-home mandates and assistance.
  • Virtual property inspections.
  • Conducting Annual Elections via video conferencing.
  • Providing updates via websites and/or portals for owners.
  • Using property management applications to collect assessments.