An HOA manager can be of great help to any self-managed homeowners association. Board members should familiarize themselves with the roles and responsibilities of an HOA manager, as well as how they can pick the right one for their community. This way, they can hire the manager that best suits their needs, expectations, and budget.
What is an HOA Manager?
An HOA manager assists self-managed HOAs and boards with the day-to-day operations of a community. Also known as an HOA community manager, the duties of this person includes financial management, rule enforcement, and resident communication. The HOA manager works alongside the board to enact and enforce policies, oversee maintenance and repairs, and plan a better future for the association.
More often than not, professional managers work under the employment of an HOA management company. However, sometimes, an HOA can employ an independent manager directly.
HOA Manager vs Property Manager
Many people use HOA manager and property manager interchangeably. Some even use the term “HOA property manager.” However, an HOA manager and a property manager don’t share the same responsibilities.
An HOA manager oversees the day-to-day operations of a community association. They assist the HOA board with managing the neighborhood. On the other hand, a property manager oversees rental properties. Property managers usually work with landlords or rental property owners. They handle things such as rent collection, tenant screening, and property inspections.
It is possible for an HOA to have both an HOA manager and a property manager under its employment. This is because an HOA can have rental properties that it handles. However, some HOA managers and management companies also offer rental property management as part of their services.
Understanding HOA Manager Responsibilities
The exact responsibilities of a community manager depend on the agreement or contract between the manager and the HOA. However, some responsibilities are more common than others, especially in the case of those who provide full-service management.
Here are the typical duties of a HOA manager.
1. Accounting, Budgeting, and Financial Management
The HOA manager helps the board with accounting, budgeting, and financial management. This includes recording financial transactions, preparing the annual budget, and generating financial statements or reports. If the association has a reserve fund, the manager also helps maintain the reserves and ensure compliance with the reserve study. In some cases, the manager even assists with tax returns and preparation.
2. Collections
Homeowners must pay dues to the association. The manager typically handles this part of the process, collecting payments from the members. While collection methods can vary, they usually include physical checks, ACH payments, e-checks, and online payments.
Additionally, if the association has a high delinquency rate, the manager works with the board to address the problem. This includes collecting unpaid dues, hiring a separate collection agency, enlisting the help of a lawyer, and even starting the lien and foreclosure process.
3. Communication
In terms of communication, the manager usually disseminates information using various channels. This includes email, newsletters, and the community website. The manager can also organize and attend board meetings to discuss issues and assist the board in general.
4. Maintenance, Inspections, and Repairs
Board members often lead busy lives, leaving the duty of maintenance and repairs to the manager. The manager conducts inspections or hires someone to do them. The manager is also responsible for adhering to a proper maintenance schedule, scheduling repairs when necessary, and ensuring that common areas remain in good condition.
5. Violations Management, Enforcement, and Inspection
The HOA manager helps the board conduct inspections for any violations within the community. If someone reports a violation, the manager also handles the investigation. Moreover, the manager assists the board with enforcing the rules by sending violation notices, planning disciplinary hearings, and following up on remedies or fines. Typically, though, the board has the final say on matters, and the manager only makes recommendations to the board.
6. Resident Liaison
The manager serves as the liaison between the HOA board and the residents. If residents have any complaints, the manager will field them and address them in the best way they can. Sometimes, they will forward the concern to the HOA board. Conversely, if the board has something to communicate to the homeowners, the manager will take care of it.
7. Vendor Coordination and Management
The manager oversees the hiring process of vendors — from soliciting bids and assisting with interviews to reviewing the vendor contract. Of course, the HOA board holds the decision-making power here, with the manager only making recommendations. Once a vendor is hired, the manager serves as the point of contact and also monitors the performance to ensure compliance and quality.
8. Event Management
Many homeowners associations hold events for their residents. If the board is too busy, the manager is responsible for planning and executing the event. Events build morale and encourage homeowners to connect with their neighbors as well as the board. As such, they serve an important purpose in the grand scheme of things.
9. Board Guidance and Advice
Board members often don’t have the expertise or experience necessary for successful community management. This is where the HOA manager comes in. The manager not only assists the board with management duties but also provides valuable insights and guidance. If the board is having trouble navigating a particular issue, the manager can step in to offer advice.
10. Coordinate With Professionals
The manager helps coordinate with professionals who provide necessary services to the HOA. This includes accountants, lawyers or attorneys, engineers, and reserve study specialists. More often than not, HOA managers and management companies have a network of trusted professionals, making it easier to connect with them when needed.
How to Choose the Right HOA Manager
Hiring the right HOA community manager can come as a challenge. Fortunately, there are some qualities and skills that board members can look for to make the process simpler.
1. Education and Expertise
A manager should have the proper education and expertise to effectively assist HOA boards. Board members should look for a manager who holds a college degree in a similar or related field. This includes property management, business management, and real estate. It is also a good idea to hire a manager who comes with professional certifications, such as the Certified Manager of Community Associations (CMCA) and the Association Management Specialist (AMS).
2. Experience
Experience is of great importance when it comes to association management. Make sure to hire a manager who has enough experience working in the industry or a related industry. This way, they will know how to handle certain problems and situations because they have dealt with them in the past.
3. Legal Knowledge
An HOA manager should have an excellent understanding of federal, state, and local laws that apply to homeowners associations. It is also important to make sure that the manager reads through the association’s governing documents, including the bylaws and CC&Rs. These will come in handy when navigating complex legal situations.
4. Financial Aptitude
Homeowners associations require expert accounting and financial management. Therefore, it is vital to hire a manager who is well-versed in these subjects. The manager should know how to read and record financial transactions, budget funds appropriately, and prepare financial reports.
5. Problem Solver
Problems can arise every day in homeowners associations. Thus, a good manager should be able to solve problems and resolve disputes without panicking. The manager should know how to tackle every issue and come to a reasonable resolution.
6. Multitasker
Community managers juggle a multitude of tasks and roles. As such, they should know how to multitask without sacrificing quality. Of course, time management is also a valuable skill, so board members should hire someone who can prioritize and manage their time well.
7. Communication Skills
Communication is one of the foundations of effective management. Since the manager will spend a lot of time communicating with board members, vendors, and residents, they should possess excellent communication skills. This includes being able to explain complex topics succinctly and express opinions or feedback professionally.
The Final Word
A good HOA manager is not difficult to find. However, if board members don’t know the first thing about the roles and responsibilities of a community manager, they will have a hard time working with one. As such, it is important for HOA boards to familiarize themselves with the duties of a manager.
Cedar Management Group employs only the best managers in the industry. We help homeowners associations and condominiums with HOA management. Call us today at (877) 252-3327 or email us at help@mycmg.com to get started!
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