What Is An HOA Management Company?
If you recently moved into a community that is controlled and managed by a homeowners' association (HOA), there is probably a management company that handles the duties for the HOA. As a resident of this community, you are part of this HOA, and it is important to understand what the management company does. Here are several things you should know about the company that manages the HOA in your community.
They Handle All Management Duties
The company that manages the HOA in your community is hired by the HOA to handle all management duties. One of these duties is collecting the HOA fees. When the company collects the fees, they deposit them and use the funds to pay for expenses in the community. A second duty is hiring companies to perform repairs and maintenance, and this includes hiring a landscaping company to perform all the yard work needed. An HOA management company will also handle budgeting the money and saving part of the money in a fund called the reserve fund. This fund is designed to pay for long-term expenses needed in the neighborhood. The HOA management firm basically handles every duty and responsibility of the HOA.
They Do Not Make Rules, But They Enforce Them
The second thing you should understand is that the HOA management company is not hired to make the rules for the neighborhood. The rules are made by the actual HOA, but the management company is there to enforce them. If, for example, there is a rule that prohibits people from placing sheds on their property, the management company would have to confront a resident if he or she put up a shed. The management company would be responsible for resolving this issue according to the rules of the HOA.
You Have the Right to Know What Is Going on with the HOA
The other thing to understand is that you have the right to know what is going on with the HOA, and the best way to stay in touch with this is by attending the meetings. Some HOAs have monthly meetings, some do quarterly meetings, and others do bi-weekly meetings. You can learn a lot by attending these meetings, but you can also learn a lot by reading through the minutes from the meetings and reviewing the financial statements.
If you have never been part of an HOA before, you should get involved with the HOA that controls your community. You can talk to the HOA management company if you have questions about what they are doing or plans for your community.