Many people need help understanding the difference between HOA vs property management. Some may even use these terms interchangeably, referring to HOA managers as property managers. However, these two acts are not the same.
What is HOA Management?
To properly distinguish HOA management vs property management, we must first define each. Homeowners associations are responsible for governing a neighborhood within its boundaries. They enforce rules, collect dues, and maintain common areas in the community. This is all done for one primary purpose: to protect property values.
As such, HOA management entails the handling of everything related to operating the homeowners association. The HOA is in charge of maintaining common property by hiring vendors to do the job. Some examples of these common areas include parks, community clubhouses, and pools.
They are also responsible for collecting assessments from the residents to fund the HOA’s activities. These dues are paid on top of the members’ monthly mortgage payments or rent. Moreover, HOA management entails enforcing the rules found within the governing documents.
The HOA also manages financial records, staff, the election of HOA board members, insurance, and vendor relations. In self-managed HOAs, the board members, the staff they hire, and the HOA committees are responsible for all these tasks. However, many associations also hire HOA management companies to reduce the board’s workload.
What is Property Management?
In contrast, property management is not concerned with managing the homeowners association. Instead, it typically deals with the handling of rental properties. This is true whether the property owner is an individual or corporate entity.
Property owners often require professional help from a property manager to help them manage the rental. The property manager’s responsibilities include collecting rent, managing maintenance, responding to urgent tenant needs, and overseeing the property’s operations.
In addition, property management companies help landlords and property owners market their property. They look for potential tenants, assist with screening, and negotiate prices. Moreover, they manage lease agreements, tenant relations, and property inspections. They even help with legal compliance and financial reporting.
Apart from these, property management is not limited to residential property. It can also include the management of commercial or industrial properties. A property manager can help manage retail spaces, office buildings, manufacturing facilities, warehouses, and distribution centers.
What are the Differences Between HOA vs Property Management?
There are many similarities between HOA vs property management. Both entail the management and maintenance of properties. Moreover, both include collecting money from residents and managing financial records.
The lines may blur even further when the community involves a condominium or a building full of residents. However, fundamental differences can help you differentiate HOA vs property management. Here are some of their main distinctions.
1. Relationship to the HOA
HOA management companies directly work with homeowners associations and help fulfill their responsibilities. Meanwhile, property management companies only handle rental properties and tenants. They don’t have power regarding the HOA’s rules and regulations.
The only way they interact with HOAs is often by ensuring their properties and tenants are compliant with HOA rules. They may also work with HOAs when helping their clients coordinate maintenance and repairs.
Property management companies can also manage HOA-owned properties if the HOA is the client. They may have some power over the rules and regulations in these cases. However, decision-making authority still lies with the HOA board.
2. Collecting Fees and Rent
Both property managers and HOA managers collect money from residents. However, what they collect is fundamentally different. HOAs collect dues and assessments from the members. These help the HOA maintain common areas and manage the community.
Meanwhile, property managers collect rent from tenants payable to the landlord. Depending on the contract, the rent amount may or may not include HOA dues. If it does, the property manager is responsible for remitting the amount to the homeowners association.
However, tenants are only sometimes responsible for paying HOA dues. The landlord or property owner is still answerable to the HOA for nonpayment of fees. This is because they are the ones who are considered members of the association.
3. Overseeing Operations
HOAs oversee the community’s common areas and ensure they’re well-maintained. However, they also manage the community, dealing with board elections, member complaints, rule enforcement, and member disputes.
Meanwhile, property managers oversee only the marketing and maintenance of their clients’ rental properties. They do not care about common areas unless they are part of the clients’ owned property. Moreover, they do not meddle in the HOA community and only address tenant complaints.
4. Resident or Tenant Property
Property managers handle the landlord’s residential, industrial, or commercial property. They take care of home repairs, improvements, and maintenance in a residential setting. However, HOAs and HOA managers do not handle residential property at all. Despite being within the community’s boundaries, resident property is out of the HOA’s jurisdiction.
The only way HOAs touch resident properties is by setting rules and architectural guidelines for them. For instance, they may require homes to be a certain color or prohibit the use of fences. However, they won’t inspect individual homes, hire maintenance, or provide utilities unless specified in the governing documents.
Can a Property Management Company Manage an HOA?
Yes, property management companies can manage an HOA if they expand their services. However, property management companies that do this may risk losing clients in the long run. This is because they may not be able to specialize and hone their craft in either one. After all, the skills required for HOA vs property management are different.
If a property management company also offers HOA management services, they may lack experience or skills when it comes to dealing with difficult tasks or circumstances. For instance, they may not know how to handle litigation if a homeowner sues the HOA. They may also find it hard when an election fails or a board member goes rogue.
Understanding the Difference
It’s important to know the difference between HOA vs property management. Only then will you be able to know who to hire to address your specific needs. An HOA management company may not be able to deal with tenants while a property management company won’t know how to enforce rules or hold elections.
Are you looking specifically for a property management company? Look no further than SurfRider Property Management. We offer excellent property management services in Florida. Call us today at 727-403-7088 or contact us online for more information!