What Does an HOA Management Company Do?

Whether you’re a part of your community’s Homeowners Association (HOA) or are about to join one (or even start one), you’ve probably asked yourself: “What does an HOA management company do?”

This is actually a very common question and it isn’t surprising that most people don’t know the difference between a Homeowner’s Association management company and the HOA itself.

After all, both parties share the same goals: community building and the business operations that come with it.

HOA vs. HOA Management: Who’s Who?

The Homeowners Association is run by a Board of Directors who are members of the community. They’re always a group of volunteers, though in most communities they’re also elected by the homeowners.

While they should have some knowledge and expertise in the functions of an HOA, fulfilling those roles isn’t their fulltime job.

Homeowners Association management, on the other hand, is a professional third-party company that the HOA hires.

At Aquity Management Group, we like to put it this way: as an HOA management company, we’re here to play the role of the action-taker while the HOA remains the final decision-maker.

What Does the HOA Do?

Federal, state, and local laws have a huge role to play in defining what a Homeowner’s Association needs to do. They’ll also determine those roles as defined in your community’s governing documents. But there’s enough commonality to give a good overview of what an HOA does, even if some of the details differ from one community to the next.

Generally speaking, the HOA is responsible for the common areas and amenities in the community, typically including providing shared services like waste management and collection. They’ll also collect monthly dues, manage community finances (general expenses and projects alike), and plan ahead for larger expenses.

The HOA will also enforce governing documents, which the Board of Directors is responsible for developing in line with the different laws we mentioned earlier.

Speaking of the Board of Directors, they’re also responsible for overseeing the HOA and its functions as a whole. This includes being the decision-makers who develop and adopt policies, as well as hiring and overseeing the different vendors in your community.

What Does an HOA Management Company Do?

As we mentioned earlier, the HOA management company is a professional third-party the Board of Directors hire. They’re there to be the action-takers on the Board of Directors’ behalf.

How this plays out can differ not only from one HOA management company to another, but also based on the individual community’s specific needs.