What Does an HOA Management Company Actually Do?
An HOA management company handles finances, paperwork, vendors and resident questions so your volunteer board can focus on decisions. Here’s what’s incl…
If you’ve just joined your homeowners association’s board, or you’re a homeowner wondering where your dues go, you’ve probably asked this question. The short version is simple. The board makes the decisions, and the management company makes them happen. The longer version is worth knowing, because a good management partner touches almost every part of community life.
What does an HOA management company do?
An HOA management company runs the day-to-day business of a homeowners association on behalf of its volunteer board. It bills and collects dues, manages the bank accounts, prepares monthly financial reports, coordinates vendors and maintenance, inspects the property, enforces rules evenly, supports board meetings and answers homeowner questions. The board still sets policy and makes the final decisions.
The board decides. The manager carries it out.
Every HOA is governed by a Board of Directors made up of homeowners who volunteer their time. Most board members also have jobs, families and lives of their own. Running an association, even a small one, takes more hours and know-how than most people expect.
A management company fills that gap. It brings the systems, experience and time that a volunteer board usually doesn’t have. In practice, the work falls into four areas.
1. Financial management
Money is where a management company earns its keep. That usually includes:
- Billing homeowners for dues and assessments
- Managing the association’s bank accounts
- Paying vendors and keeping records of every payable and receivable
- Preparing a monthly financial package for the board, such as a balance sheet, bank reconciliations, a budget comparison, an accounts receivable report and a cash disbursement report
- Helping the board build the annual operating budget and plan for long-term reserves
At Complete Management, accurate and on-time financials are the cornerstone of our firm. A board can only make good decisions when it can trust the numbers in front of it.
2. Administrative services
This is the work that keeps an association organized:
- Scheduling and attending board meetings
- Preparing monthly management reports
- Keeping complete records of transactions, activities and association documents
- Guiding the board through the budget process
- Answering homeowner calls and emails promptly
Having one dedicated manager who knows your community also means homeowners have one clear place to go with questions, instead of knocking on a board member’s door.
3. Site and property management
A well-kept community holds its value. Property management typically covers:
- Regular site visits to check on maintenance issues
- Inspecting for rule and deed restriction violations
- Confirming that lawn care, pool cleaning and other vendors are doing the work in their contracts
- Getting bids, recommending vendors and managing projects
- Processing architectural review applications
- Planning for emergencies such as hurricanes and flooding
4. Collections
When a homeowner falls behind on dues, it puts neighbors in an uncomfortable spot. A management company handles collections professionally and consistently. It sends delinquency notices at the board’s direction, reports delinquent accounts to the board, and works with the association’s attorney when legal action is needed. In Texas, collections must follow specific notice rules in the Texas Property Code, so experience matters here.
Bonus: community engagement
The best managers don’t just manage a community, they help build one. That can include newsletters, online updates, welcome information for new owners, and help planning community events.
What a management company does not do
It’s just as important to know where the line is. A management company:
- Does not make the board’s decisions. It advises and recommends, but the board votes.
- Does not set policy or change the rules. Rules come from the association’s governing documents and board-adopted policies.
- Does not own the association’s money. Funds belong to the association and should be held in the association’s own accounts.
- Does not replace the association’s attorney or CPA. It works alongside them.
Is a management company right for your HOA?
Not every community needs full-service management. Some smaller associations only need help with accounting or collections. Others want a complete partner. The right fit depends on your community’s size, amenities, budget and how much time your volunteers can give.
Frequently asked questions
Who does the HOA management company work for?
The management company works for the association, and takes direction from the Board of Directors. It serves homeowners by carrying out the board’s decisions and answering their questions.
Can a management company fine homeowners?
A management company can send violation notices and apply fines only as the association’s governing documents and the board’s policies allow. In Texas, specific notice and hearing rules apply before a fine.
Do I still need a board if we hire a management company?
Yes. An HOA must have a board to govern it. The management company supports the board, but it doesn’t replace it.
Can we hire a management company for just part of the work?
Yes. Many associations start with financial management or collections and add services later.
How much does HOA management cost?
It depends on your community’s size, amenities and the services you need. The best way to get a real number is a short meeting to talk through your community.
Want to see what professional management would look like for your community? Complete Management, Inc. serves HOA communities across the Houston metro area. Request a Proposal to meet with Donna, or call (281) 469-1057.
Let’s make management easy.
Tell us about your community and we’ll get back to you with next steps.