Categories Property Management

HOAs and rental property management: A connection between the two

You are an organization and they are an organization. Can you work together to achieve your goals? You need to be able to work with homeowners associations as a property manager.

Negotiating Scope of Work

Create a list of your responsibilities and work with the HOA in order to determine its needs. Ask yourself:

  • Who is responsible for repairs and maintenance?
  • Who is responsible for the accounting?
  • What is required by the HOA?

A property manager can simply be responsible for the maintenance of common areas, such as heating and lighting clubhouses, maintaining community pools, elevators and landscaping common parks, according to an Nolo article. Other properties may require management services such as accounting or rule enforcement. The HOA can help you determine if your company will be a good match and if it is willing to do the work required by the HOA.

Who makes the rules?

Many HOAs, as well as property managers, have to deal with this question. As the manager, it is your job to enforce the rules set by the HOA. If there is a dispute over the rules, the HOA must be contacted. Institute of Real Estate Management states that a property manager is not able to resolve disputes between homeowners or provide legal advice, since these are the responsibility of the HOA.

What process does the HOA require?

The HOA, as the entity in charge of a particular property, is responsible for doing due diligence on your company to ensure that you are a reliable partner. Make sure you have all your credentials and licenses, and that they are in compliance with the state’s requirements. You should check how your insurance, and the HOA’s insurance will cover lawsuits or property damage. Prepare to give references and background checks to the HOA.

Contract negotiation with an HOA

After you have determined that your company and HOA are compatible with each other, use the help of an attorney to create a contract for management. A typical contract with HOAs lasts between 1 and 3 years. Review the HOA’s obligations and fees before signing any contract. Also, understand how to terminate the contract in the event of a bad relationship.

You need a data management tool that will allow you to manage your properties and HOAs. It should also be able to retrieve data, analyze trends, and store it.

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