What is Community Association Management?

The community association management industry plays a crucial role in maintaining and overseeing residential communities, specifically focusing on homeowners associations (“HOAs”) and condominium (“condo”) management. While often confused with broader property management, community association management is distinct in its specialized focus on shared residential communities. In contrast, property management as a whole encompasses a wider array of services, including the management of single-family rentals, multi-family rentals, commercial properties, and resorts. Understanding the segmentation within these services is essential for recognizing the unique needs and operations within each category.

‍

Community association management, particularly HOA and condo management, involves the administration of shared spaces, amenities, and services within residential communities. These services are distinct from those offered in single-family and multi-family rental management, where the focus is more on individual units or properties. However, in metropolitan areas, it is common for companies to provide both community association management services AND single-family and multi-family rental management. Similarly, in resort destinations, companies often provide a combination of HOA and condo management services and vacation rental management, reflecting the overlapping needs of these communities.

‍

Full service HOA and condo management companies offer a range of services tailored to the specific needs of residential communities. These services can be broadly categorized into management services and financial (accounting) services.

‍

Management services typically include overseeing the day-to-day operations of the community, such as ensuring compliance with community rules, maintaining common areas, and managing communications between the association and homeowners. These companies also handle administrative tasks like organizing board meetings, enforcing covenants, and ensuring that community events and amenities run smoothly. A significant aspect of management services in HOA and condo management is the collection and management fees. These fees fund the community's operations, including maintenance, security, landscaping, and other essential services. The management company ensures that these fees are collected in a timely manner, handles any delinquencies, and works closely with the community board to allocate funds appropriately.

‍

In addition to management services, full service HOA and condo management companies provide comprehensive financial and accounting services for their clients. These services include budgeting, financial reporting, and the management of reserve funds. Accurate financial reporting is essential for transparency and helps the community association make informed decisions about future expenditures and investments. The management company may also handle tax preparation, audit coordination, and financial planning, ensuring that the community's finances are managed efficiently and in compliance with legal requirements. This dual focus on management and financial services allows community association management companies to provide holistic support, ensuring that residential communities are well-maintained and financially sound.