Who governs HOA management companies? What does the management company do? And if there’s a management company, what does the HOA board do? Let’s take a look and clear up some of the confusion.
Why Have an HOA?
Homeowners’ associations often get a bad rap, but the truth is they’re in place to protect the community and, in turn, protect the value of your property. If you’re a homeowner in the Vail Valley, or looking at property in and around this resort town, considering a home in a neighborhood with an HOA could be a huge benefit. The HOA is responsible for maintaining common areas, overseeing and maintaining neighborhood amenities, and communication between neighbors.
What Does the Board Do?
The board of directors of a homeowners’ association consists of elected volunteers that usually include a president, vice president, secretary, and treasurer. The board members are responsible for representing the residents within the community. Their primary role is to interpret and enforce the rules of the covenant.
These members attend and facilitate monthly meetings, hear complaints from residents, respond to feedback, and hold hearings on rule violations. They also review submissions from residents for changes or additions to their homes such as landscaping, paint colors, fencing, patio covers, etc., and are responsible for approving or denying those submissions.
What Does an HOA Management Company Do?
There are a few reasons for an HOA board to hire a management company:
● For one, volunteer board members have jobs and families of their own that take up much of their time; a management company can oversee all of the fiscal responsibilities of the association, which is a tremendous job and one that requires experience and expertise.
● They collect and record all dues, manage the accounts, ensure accuracy in bookkeeping and accounting, and prepare monthly and yearly statements.
● They maintain bank accounts and assist the board in creating the annual budget.
The management company is the administrative backbone of the board, responsible for enforcing rules, preparing meeting notices, proxies, and agendas, and maintaining legal documents. They also act on behalf of the board to hire contractors to maintain and manage the common areas, do repairs, and preserve the safety of the community.
While the managers are responsible for the majority of the workload related to the upkeep of a community, they are not the governing body. The HOA board of directors governs the management company.
Now that you have your answer as to who governs HOA management companies, are you ready to take advantage of the service for your business? If you’re looking for a company that can better support your community, look no further than the team at Fireside Properties. Reach out to us today to find the HOA management company your community has been looking for.