Many communities are overseen by a Homeowner’s Association (HOA). This is usually made up of elected Board members that are community members. The community will generally have a set of guidelines and policies that need to be followed by all residents. The HOA Board works to see the guidelines are followed and that any concerns of the homeowners are heard. The Board works in close conjunction with the HOA company. Without this management company, the Board would not be able to function properly as there are a great number of things done by the management company.
Regulation and Rule Enforcement
The Board will usually not be the ones to actually enforce rules, but are there to hear concerns of property owners and point out problems to the HOA company. Otherwise, rifts between Board members and residents could easily be created. The Company has the experience and tact to speak with residents in regards to rule and regulation infringements.
Arrange and Oversee Service Contracts
In any community, there are bound to be service contracts that must be maintained. This will include things such as lawn care and snow removal. It is up to the Company to hire, oversee and pay these service providers. This is all done with approval from the Board and community members.
Manage Homeowner Assessments
The company will also be responsible for collecting assessments from all community members. This is collected on a monthly or annual basis. The Company is also responsible for the collection of any unpaid dues. In some instances, it is necessary to work with an attorney and collection agencies to ensure the assessments are paid.
Prepare Yearly Tax Returns and Budgets
The HOA will have an annual operating budget, and it is the responsibility of the Company to maintain this. Completing and filing an annual tax return for the community is also another job done by the Company. In some instances, there will be a tax-preparer in the community that can do the work, but it is ultimately up to the Company to see this is completed when required.
These are simply a few of the different responsibilities of the HOA company. They are important part in the smooth operation of any Homeowner’s Association.