Due to the fact that managing an HOA can be time consuming and complex, the vast majority of HOA’s hire outside (or 3rd party) management companies to handle the governing duties of the association. These management companies become the registered agent of the Association through the filing of a Management Certificate in County Records, thus becoming Agents of the Association under direction of, and to apply and administer, BOD decisions.
Management services are typically divided into three categories:
- Financial only – Typically cover administration of bank accounts, bookkeeping, assessment collection, and the HOA’s budget.
- Full management – Typically includes the financial services plus helps with the Board meetings (keeping minutes, agenda etc), Board elections and maintenance duties (obtaining contractor bids, etc.) and oversight of maintenance contracts.
- On-site management – Typically includes all of the full management services plus directs assistance to homeowners with an assigned manager to the HOA. On-site managers are employees of the Management Company and have no authority to act outside of the BOD approved expenditures (budgets), or allowed to make changes to BOD policies or procedures without specific actions taken by the BOD. The on-site manager can speak for the Board but only with specific direction.