A community association manager can be of great help to a self-managed board. Associations might look simple on paper, but the responsibilities that board members take on can quickly become overwhelming. With professional assistance, boards can ensure smoother operations.
What is a Community Association Manager?
A community association manager, also known as an HOA manager or community manager, is someone who handles daily operations on behalf of the board. They are not elected like board members. Instead, the board hires the manager, who usually comes with professional training behind them.
Even with a manager, the board stays in charge. Board members approve budgets, pass resolutions, and make decisions for the community. The manager then makes sure to carry out those deciions. In other words, the board governs, and the manager manages.
Community Association Manager vs Property Manager
It is worth noting that community association managers and property managers are not the same. The titles get mixed up all the time.
A property manager works for a landlord. They look after rental units, collect rent, and deal with tenants. Their loyalty lies with the owner of the property.
On the other hand, a community association manager works for the entire association. They deal with owners, common spaces, rules, and finances. Their goal is to keep the community running smoothly, not to make a profit for a single person.
A community manager can serve all types of communities. These include single-family HOAs, condo associations, townhomes, commercial associations, and the like.
What Does a HOA Manager Do?
The exact list of duties for a community association manager depends on the contract. Some boards want help with everything, while others only want a manager for finances or maintenance.
Above all else, the scope comes down to what the contract says. That said, most managers cover the same key areas.
1. Financial Management
Managers collect dues and keep track of payments. They help boards write budgets and plan reserves so the community does not run short when repairs come up. They also prepare financial statements, coordinate audits, and assist with taxes.
Many boards don’t have sufficient accounting experience. A manager makes bookkeeping, reporting, and general financial management easier and clearer.
2. Rule Enforcement
Rules are only as strong as the enforcement behind them. A manager handles inspections, sends violation notices, and organizes hearings. They don’t hand down punishments, as that is the board’s role, but they make sure the process runs fairly. This way, enforcement remains consistent.
3. Maintenance and Vendor Coordination
A manager can coordinate vendors and contractors to take care of maintenance and repairs. They can help the board with the selection process, making sure to hire a reliable and reputable vendor for every need.
Additionally, the manager can watch for preventive maintenance, fixing small problems before they turn into large ones. The last thing a community needs is an emergency repair that could have been avoided.
4. Communication
A manager acts as the main point of contact. They talk to residents, update the board, and coordinate with vendors, too. It might sound simple, but this open line of communication helps prevent confusion. Communication keeps everyone informed, and it stops small issues from growing into disputes.
5. Administrative Support
Associations generate a ton of paperwork. Minutes, agendas, filings, and notices — a community manager can organize and store them all. They can also make sure to meet all deadlines.
6. Legal Assistance
Association managers are not lawyers, but they know when to call one. They can alert boards about compliance, remind directors of deadlines, and connect them with attorneys if legal questions come up. This way, boards don’t miss important details.
The Benefits of Hiring a Community Association Manager
While hiring an HOA manager doesn’t come free, the benefits can certainly outweigh the costs. Here are the ways a professional manager can make a difference in a self-managed association.
1. Expertise and Experience
Most board members are just volunteer homeowners. They don’t have backgrounds in accounting, law, or building maintenance. A manager does.
Managers have handled problems in other communities and can bring that experience to the next. In other words, they already know what works and what doesn’t.
2. Network of Pre-vetted Connections
Community managers usually have lists of vendors they already trust. This includes landscapers, repair services, accountants, and attorneys.
Having this network can save the community a lot of time. Boards don’t have to start from scratch or risk hiring the wrong contractor because the manager has already seen these vendors in action.
3. Time Savings
Board members often have professional and personal lives outside the association. Because of this, they often have a hard time juggling their association duties with other aspects of their lives.
An HOA manager can take on the day-to-day tasks in lieu of the board. This will allow board members to save time on administrative or repetitive work, focusing instead on long-term planning and decision-making.
HOA Management Companies vs Independent HOA Manager
Boards usually have two options when hiring professional help. They can go with an independent manager or a management company.
Independent managers are often less expensive and may provide more personal attention. The drawback is that they are just one person. If they leave, get sick, or take on too many clients, the association is left scrambling.
In contrast, a management company provides more comprehensive HOA management services. A company usually has multiple managers, assistants, and specialists on payroll. This means backup support, more expertise, and long-term stability.
Larger communities tend to prefer companies. Meanwhile, smaller ones often choose independent managers because of cost.
Is a Community Association Manager License Required in D.C.?
In Washington D.C., community association managers currently don’t need a license. There has been some legislation proposing licensing for such managers, but such bills have been met with opposition.
Boards often look for certifications instead. Professional designations from organizations like the Community Associations Institute (CAI) show that the manager has training and credibility. While not required, they offer associations peace of mind.
Is an HOA Manager a Board Member?
No, an HOA manager is not a board member. Board members are elected by owners, serving the community in a decision-making capacity. Meanwhile, a community association manager is hired help, having little to no authority over final decisions.
It is the responsibility of the HOA board to make decisions, set budgets, and pass rules. The manager enforces those decisions and carries them out. They don’t vote or govern the association.
A Worthwhile Decision
Hiring a community association manager can help boards keep control of their workload and avoid burnout. Managers bring expertise, vendor connections, and stability that volunteers can’t always provide. For this reason, self-managed associations should consider professional management.
TNWLC offers professional management services to community associations in Washington, DC. Call us today at (202) 483-8282 or contact us online to get started!
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