Why Use A Third Party HOA Manager?

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Homeowners associations (HOA) are an excellent tool used by a group of organized homeowners, typically in a large planned housing development, to help organize, inform, and enforce standards related to the presentation and upkeep of property within a development. Typically governed by a collection of volunteer residents from the neighborhood, the workload associated with various roles in the HOA can become overwhelming. Managing budgets, vendors and scheduling related to lawncare, snow removal, deck and roof repairs in combination with regular meetings, collection of dues and a myriad of additional tasks and you can quickly see why.

For many HOA’s the answer is a strategic partnership with an HOA management firm. Comprised of real estate professionals, these residential management firms can provide the support a volunteer group needs to ensure the highest quality of service for their neighbors. Getting started can be the toughest part. Organization and division of responsibilities is important to long-term success. For example, in most instances an HOA would provide oversight of activities related to collection of dues, enforcement of governing documents, and generally make decisions, adopt policies, and hire vendors. The management company helps with a variety of other tasks including administrative services, site management, accounting, and generally executing on the decisions made by the HOA.

Administration

Perhaps the greatest value for many HOA’s partnering with a management firm is the scope of administrative services a skilled group of real estate professionals can provide. These items can prove to be very time consuming and include guiding the board through budgeting processes, responding to homeowner inquiries, enforcing rules, and reporting. With this level of support from an association manager, many HOA’s thrive.

Site Management

Site management is often challenging for HOA’s as they live among their neighbors and at times will need to enforce the rules of the community as they relate to the presentation and use of individual properties. Neighbor to neighbor disputes can be quite common, adding to the value of a skilled association manager. An association manager visits the community on a regular basis to assess a number of items including maintenance issues, compliance with rules related to fences, pools, vehicle storage, and general upkeep of the property including lawn care, snow removal, etc. Proper site management helps ensure the long-term value of the properties within the community and establishes a level of quality and value.

Accounting

Managing the finances for an HOA is typically very involved considering transactions including the collection of dues, payment of vendors, and general accounting required to ensure transparency in terms of the HOA’s financial activity. A real estate professional will directly support HOA activities through management of bank accounts, review of and reporting on accounts payable and accounts receivable, creation of monthly financial statements, budgeting, and of course long-term financial planning.

Working together, an HOA and association manager can effectively maintain a very high level of service and care as it relates to the physical state of the property while eliminating the burden often faced by volunteer HOA members. Contact Ciminelli’s residential management team to learn more.


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