If you’re a real estate developer looking to maximize profits, you should be aware of HOA management companies. Read here to find out more!
Are you a real estate developer looking to keep property values up in the long-term? Do you hate dealing with the day to day operations of your buildings?
If so, then you need to leverage an HOA management company for your property. In this article, we’ll explain what an HOA management company is and what you need to know about them.
HOA Management Companies Are Not HOAs
One thing that real estate developers are residents alike sometimes get confused is that HOA management companies and HOAs are not the same things!
An HOA, or homeowners association, is a board made up of property owners. The jurisdiction of the homeowners association ends where the board’s property ownership ends. This board is the governing body that creates articles, bylaws, and policies. Any homeowner in the jurisdiction of the HOA has a say in the policies outlined.
An HOA management company, on the other hand, has no authority other than which it is vested in it by the HOA itself. The management company enforces policies and takes care of the day-to-day operations. These operations are paid for with money collected from HOA fees. This may include such things as maintenance of publicly-used amenities.
An HOA management company can only be hired after an HOA itself has been established.
Management Solutions Are Personalized to Each Property
Any HOA management company worth its salt will not take a one-size-fits-all approach with the properties that it manages. Instead, a homeowner association management company will tailor its approach and responsibilities. Each property is different, so each management style may need to be different.
Most HOA management solutions are also scalable. That means that as the HOA grows, its operations can scale with the HOA growth. An HOA grows if property owners in the surrounding areas wish to join the HOA. They would want to do so in order to receive the benefits that a homeowners association can provide to a general group of properties.
Environmental Conscientiousness is Crucial
Environmental conscientiousness is always in the public limelight. Few industries show commitment to the trend as well as HOA management. Most solutions in this space will place heavy emphasis on environmentally-friendly operations. They may require homeowners to recycle and leverage green maintenance policies for amenities.
Your Property May Need Dedicated Resources
Is the real estate property that you are developing extensive? Do you expect a very large number of people to live in it? If so, then your property may need dedicated resources from the HOA management company that it chooses.
These dedicated resources may include office staff to handle daily operations. Also consider maintenance staff to handle incoming maintenance requests. This staff will work full-time on the property and devote all their working hours to your specific property.
Which HOA Management Company Is Right for You?
Now that you know everything you need about HOA management companies, all that remains is for you to pick the right firm for you! Remember to go with a company that has extensive experience managing your specific type of property.
