Expectations of Community Managers and its HOA Boards of Directors

If you’ve never owned a home that has a governing homeowners association (HOA), it can be difficult to sort out who does what. To give you a better understanding of the relationship between residents, HOAs, and management companies, we’ve provided this article to explain the rules and expectations for each group.

What’s the difference between the HOA board and the management company?

The HOA board and the HOA management company are two separate entities. The homeowners’ association (HOA) board is comprised of elected volunteers who own property in the community and usually live there. The HOA management company is an outside vendor contracted by the homeowners association.

The Role of the HOA Board

The homeowners’ association board has two main duties:

•  Acts a fiduciary for the non-profit homeowners association corporation - This means that they’re entrusted with making the decisions that affect the values of the properties in the community. One of the board’s primary responsibilities is to protect, preserve, and enhance the value of the physical property governed by the community association. 

•  Facilitates the enjoyment of the community  

 This involves setting the rules and regulations for residential conduct, including usage of common spaces,     landscaping standards, and anything else that affects the overall residential environment of a community.

The Role of the HOA Management Company

The management company is a vendor, hired by the HOA board who act as agents of the HOA corporation. The management company is a fiduciary and has two core duties:

• Provides helpful business advice

As experts regarding the laws that affect property values in a particular area, HOA management companies offer unbiased direction and recommendations to help homeowners associations make the most prudent and effective decisions to preserve and enhance the value of the property.

• Implements the direction of the HOA board and facilitates day to day operations in the community

While the HOA board establishes the rules for the community, the management company implements the rules. This can range from issuing notices to homeowners for minor infractions to acquiring independent bids for service providers that affect the community. The management company does not have the final say in how rules are written; they simply ensure that residents follow the HOA regulations and HOAs follow legal regulations.

What can homeowners expect from their HOA board?

Members of the board are elected volunteers who act in the best interest of the homeowners’ association, no matter their private opinion or personal bias. Board members are expected to:

• Act in a fair and consistent manner

• Refrain from voting on issues or making decisions that present a conflict of interest, and

• Treat homeowners and other board members with respect during discussions and throughout any dispute resolution

Facilitating the right fit between HOA and management company

One of the most common reasons that friction arises between a homeowners association and the management company is because the community manager (the management company employee who acts as a liaison to the HOA board) is simply not the right fit for the community. This can happen for a number of reasons, from personal to professional.  The most efficient way to handle this is to work with the management company to resolve the issue. HOA boards should ask the management company to address the issue or assign a new manager who is a better fit for the needs of the community.

Homeowners’ association boards and management companies have two completely different roles in managing a community. By better understanding who does what, residents can address their concerns with the appropriate party and avoid any confusion about how each party supports the other.

What can the board expect from the HOA’s management company?

The HOA management company’s role is to implement the guidelines set by the HOA; acting upon the rules that the HOA sets. The services provided by an unbiased management company ensure that the HOA is working in accordance with the state and Virginia laws that protect homeowners.

How does a management company help the association’s board?

As the board’s closest and most trusted business relationship, the management company should always work in the best interest of the HOA to protect and increase property values within the community. They do this by implementing HOA management resources such as:

• Making sure the community common areas always look aesthetically pleasing

• Making sure the corporation's liability exposure is low

• Ensuring that the community manager working with the board is the right fit to provide outstanding service to the community, and 

• Providing ongoing training and support for their community manager