Serving on a homeowner’s association (HOA) or property owners association (POA) board is a meaningful way to support your community, but it also comes with a wide range of responsibilities. From finances and legal compliance to resident communication and rule enforcement, the workload can add up quickly. Volunteer board members from all walks of life bring perspective and personal experience to the role; however, many need to learn the essential industry-specific knowledge unique to HOAs.
That’s where a professional HOA management company can make a measurable difference. By handling day-to-day operations and providing expert guidance, a professional management partner allows board members to focus on leadership, planning, and decision-making.
What Is a Community Association Management Company?
An HOA hires a community association management company to manage the association’s daily operations and provide professional and administrative support to the board of directors. While the board retains decision-making authority and sets policy, the manager and the management company carry out the board’s directives and ensure the association runs efficiently.
A professional management company will handle a multitude of responsibilities for board members – let’s see some areas in which they can assist and, thereby, make your life a bit easier.
Billing and Collections Support
One of the most time-consuming responsibilities for a community association is managing assessments. A management company typically handles the billing and collections process, including:
- Billing residents for regular assessments and special assessments
- Collecting payments and posting them accurately
- Supporting the collections process in accordance with governing documents and board policies
- Issuing delinquent notices and coordinating with the association’s attorney when needed for collections
- Staying current on state and federal laws related to collections
- Assisting the board with determining assessment levels for a managed budget
This structured approach helps maintain steady cash flow while ensuring compliance and consistency.
Administrative Duties That Keep the Association Organized
Planning and organization of administrative work is essential but often underestimated. A management company provides structure and continuity by assisting with:
- Coordinating, preparing for, and attending board and membership meetings
- Managing routine communications with residents
- Overseeing service provider contracts and service agreements
- Assisting with association insurance needs, common area management, capital planning, and other business functions
- Coordinating with professional service providers such as attorneys, CPAs, and engineers.
- Providing customer support for association-related business
With these tasks handled professionally, boards can operate more efficiently and focus on other areas of the community association.
Streamlined Resident Communication
Clear, consistent communication is critical to a well-functioning community. A management company serves as a central point of contact, which allows board members to focus on governance rather than daily inquiries.
Key communication services often include:
- Sending notices related to meetings, maintenance, and policy updates
- Providing residents with easy access to important documents and account information
- Sending community-wide e-blasts
- Responding to homeowner requests and questions related to the association
This approach helps reduce misunderstandings and ensures messages are delivered in a timely, organized way.
Enforcing Community Rules Fairly and Consistently
Rule enforcement can be challenging for volunteer boards, especially when neighbors are involved. A management company brings objectivity and consistency to this process by:
- Performing regular community inspections as outlined in the management agreement
- Issuing compliance notices and tracking corrective action
- Assisting, alongside legal counsel, with rule development and enforcement
This support helps protect the association board from claims of discrimination while maintaining a fair and professional process.
Financial Management and Reporting
Sound financial practices are essential to the long-term health of any community association. Professional management companies provide financial oversight and reporting that boards can rely on, including:
- Drafting annual budgets for board review and approval, and managing and reconciling bank accounts and general ledgers
- Preparing timely and accurate financial reports
- Providing monthly variance reports to assist with planning and budgeting
- Distributing financial information to the board and homeowners for review
- Setting up and monitoring capital reserve accounts
- Facilitating timely tax filing and audits
Clear reporting allows boards to make informed decisions and plan responsibly for future expenses.
Educational Opportunities for Board Members
HOA board members are volunteers, often learning their roles as they go. A strong management company offers ongoing education to help board members feel confident and informed.
These resources may include:
- Board training sessions and workshops
- Webinars featuring industry experts
- Updates on changes in laws and regulations affecting HOAs
Education empowers boards to lead effectively and reduce risk.
Conclusion
An HOA management company does more than handle tasks; it provides structure, expertise, and support that help communities operate smoothly. By partnering with a professional management team, community association boards gain the tools and time they need to focus on strategic leadership and the long-term success of their community.
About Community Association Management Services
In business since 1991, CAMS has grown to become North and South Carolina’s premier community management company. With experienced local managers in each of its nine regions, CAMS provides innovative solutions to the community associations it serves. To learn more, visit www.camsmgt.com/choose-cams.
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