Breaking Down the Differences Between HOA Boards and HOA Management Firms
With the goal of maintaining the overall appearance and value of their community, Tacoma, WA HOAs are responsible for enforcing rules and regulations, managing finances, and maintaining common areas. To achieve this, community associations typically rely on two key entities: the HOA board and an HOA management firm.
While both entities have a common goal, they differ in their specific responsibilities and their approach to fulfilling these responsibilities. Before seeking professional community management services, it’s important for HOA board members to be aware of the differences between the two parties and how exactly an HOA management company can benefit their neighborhood.
HOA Boards vs HOA Management Firms
The HOA board is a group of elected members who are responsible for managing the HOA and making crucial decisions about how it operates. The board consists of homeowners who live within the HOA and volunteer their time and efforts to serve their community.
HOA management firms are third-party service providers that are hired by the HOA board to manage the day-to-day operations of the community. They have a team of hired professionals who have the knowledge and experience to handle the maintenance and administrative tasks of the community association.
Both the board and the community management company need to work together to operate the HOA and ensure its success, but sometimes the responsibilities of each party can start to become blurred. This is especially true when the HOA board isn’t aware of the clear difference between the two and begins to request or expect that the management firm take over some of the board’s duties. Although the management company is there to help the board as much as it can, some duties should remain reserved exclusively for board members.
Responsibilities of the HOA Board
Every HOA is composed of volunteer board members who vote on how funds are allocated, which rules are set into place, and other important decisions. They organize community events, create projects for the improvement of common spaces, choose community vendors, and much more.
Ultimately, the HOA board’s responsibility is to maintain property values by ensuring their neighborhood remains a desirable place to live. This can involve hundreds of daily decisions and tasks, all working toward that goal. Being a member of an HOA board means dedicating time to your community and advocating for the best interests of the neighborhood. It’s an important role, but one that comes with many important duties.
Responsibilities of an HOA Management Company
While the HOA board focuses on the big picture and makes decisions for the community’s well-being, the HOA management company executes its decisions and handles day-to-day operations. The community management firm will perform administrative tasks including answering homeowner inquiries, vetting and scheduling vendors, and collecting dues from residents. A full-service HOA management firm such as The Management Trust will also offer comprehensive financial services such as tax filing assistance, annual budget preparation, vendor billings, escrow services, and audit coordination.
While the HOA board is still the exclusive decision-maker in the community, laying out the rules and fees, the HOA management company works to effectively execute the decisions made by the board while ensuring residents’ happiness and satisfaction. The board can decide which day-to-day responsibilities the management firm takes off its plate, but all policies and executive decisions remain the responsibility of the board.
Utilizing a reputable and full-service HOA management company for day-to-day duties can help your board focus on the bigger picture, so your community can fulfill its full potential. If you want a community management partner dedicated to building a community you love through whatever means necessary, look no further than The Management Trust. We’ve been an industry leader for over 30 years, with more than 1,500 communities served nationwide. To learn more about our full range of community management services for Tacoma, WA, HOAs, call The Management Trust at 253-472-0825 or fill out our online contact form today.
