Do Texas HOAs Need a Property Management Company?

HOAs do need a management company to help them operate. Whether big or small, there are several reasons why an HOA needs an association manager to help their community. With their knowledge and experience, a management company can ensure that HOAs establish and maintain a thriving association that benefits all members.

Homeowner associations (HOAs) are complex organizations. HOAs comprise several volunteer homeowners and are governed by an elected board of directors. Ensuring the success of an HOA requires time, hard work, and dedication. HOAs can have a wide range of different needs.

Since board members usually have full-time jobs outside the HOA, hiring an outside management company is the best solution for running an HOA.

Every HOA is unique, with different goals and challenges. However, all HOAs share specific organizational structures, legal requirements, and financial needs.

Here are several reasons why an HOA needs a management company:

Manage Daily Tasks and Big Projects

Most HOAs need a manager to help with daily tasks. These tasks can include mundane yet essential duties such as collecting the HOA's mail, inspecting the grounds, and acting as an accountant. An association manager's job is to look after their clients' budgets. Using software like CINC Systems for general ledger accounting and automatic bank reconciliation, your manager can monitor clients' bank accounts in real-time and protect the HOA from fraud.

Additionally, an HOA needs a management company to help facilitate big projects. Whether it's an upgrade to common areas, a new construction project, or other long-term endeavors, an HOA manager can help the HOA plan for the future. This includes acting as a consultant, offering advice to the board, and executing project plans.

Enforce the HOA Rules

HOA management companies are also necessary to help an association enforce its rules. To help the HOA ensure that their communities remain desirable places to live, the management company can do two things.

First, a management company can inform residents of the HOA's bylaws and rules. Legally, the HOA must provide each homeowner with a copy of its rules and regulations by distributing a governing document known as the Declaration of Covenants, Conditions, and Restrictions (CC&R). These documents are given to each new homeowner when they purchase their property.

However, some residents may not read the rules carefully or forget them over time and lose their CC&R copy. A management company can create a resident portal with a digital copy of the CC&R uploaded to the website. You can ensure that everyone in the HOA understands the rules and has access to the CC&Rs.

Second, a management company can help your HOA enforce the rules by handling violations on the association's behalf. Depending on the nature of the breach, a verbal warning can be issued, followed by a written warning, and fines or restricted privileges can be imposed.

Ensure Legal Compliance

HOAs are legal entities required to comply with local laws and civic codes. These legal requirements can be long, complex, and change over time, so the HOA's board members need help ensuring compliance. An association manager can assist with this.

An HOA manager can also make sure the HOA has the necessary governing documents such as articles of incorporation, association board bylaws, and the CC&R mentioned above.

The management company can also review the HOA's various permits and licenses and ensure everything in the HOA is up to the current code. If there are areas where the association is in violation, such as a structure built without the correct permits, the manager can help them work with their city or county to comply.

Collect Resident HOA Fees

Next, an HOA needs a management company to help collect resident fees. Resident fees are crucial to the operations of an HOA. Fees cover maintenance and repairs for common areas, monthly bills, the association's reserve fund, and more.

In the past, collecting resident fees was arduous and time-consuming. However, this task becomes easy with cloud-based association management software like CINC Systems. Association managers can use CINC Systems to create an online payment portal for their clients' residents, allowing them to pay electronically.

Then, fees are automatically deposited into the HOA's funds. Association management software like CINC Systems also lets managers quickly generate a list of overdue or incomplete payments.

Hire Vendors and Pay Bills

Associations need outside vendors. Whether it's a one-time repair or ongoing services such as security and landscaping, HOAs need professionals to help maintain their community. The association manager's job is to vet new vendors for their clients.

In addition to hiring vendors, an HOA needs a management company to help them pay the bills. Association managers help the HOA stay fiscally organized using software like CINC Systems. Association management accounting software allows vendors to submit invoices electronically. Then, the HOA manager can quickly pay the outstanding amount from the HOA's funds.

Handle Resident Communications

Finally, an HOA needs a management company to help handle resident communications. This communication can include making announcements about fees, board meetings, new or updated rules, and other information that affects the community.

HOA managers also assist HOAs by communicating with individual residents about specific issues. Some examples are mediating a dispute between neighbors or keeping a resident updated about the status of a work order. When an HOA has a big community with dozens of families, they'll need a management company to help them stay on top of communications.