Hiring a property manager is a no-brainer for landlords who don’t want to deal with the day-to-day responsibilities of real estate ownership. Some don’t have the capacity; others don’t have the interest. In either case, a property manager allows owners to take a hands-off approach while the property manager uses their expertise, skills, and time management to protect the owner’s investment.

However, Homeowners Association (HOA) property management presents a more complicated picture. HOAs exist when multiple people buy a condominium, townhouse, or another type of property in a planned unit development, such as a gated community or subdivision. Each owner must pay HOA fees for routine maintenance of the common areas and the building, and the HOA usually maintains a reserve for more expensive repairs. HOAs might also enforce the property’s covenants, conditions, and restrictions (e.g., the community’s “rules,” which might include guidelines around yard maintenance, subletting, etc.).

Handling HOA property management duties

Smaller HOAs may be able to carry out property management duties independently. Consider a four-unit condo association where one owner might volunteer to take on the HOA’s finances; another might offer to schedule lawn mowing and trash collection. The other two property owners might weigh in on decisions and possess voting rights, but by and large, the association runs with little complication.

Larger associations can be more difficult because there’s just more of everything: bills, financial records, maintenance issues, valet trash that might be a necessity, and residents who need immediate responses. An elected Board of Directors often carries out these activities. Here, an LCAM is crucial! This arrangement is most effective when the board members have unique skills that benefit the association—for instance, accounting or construction management.

However, volunteer Board members often struggle to oversee the HOA’s obligations without outside assistance. That’s when they turn to a property management software company for guidance.

While property management companies provide a range of services, most are equipped to handle the monthly collection of HOA dues, fines, and fees; management of HOA financials; creation of an annual budget; development of a long-term capital improvement/replacement plan; ongoing maintenance; finding and managing contractors; and monthly reporting to the HOA board.

 Do you need HOA property management?

As a general rule of thumb, HOAs should consider outside property management in the following situations:

· Homeowners don’t have the time or experience to serve on the HOA’s volunteer Board of Directors. Members of the Board should usually have some background in areas like finance, operations, law, vendor management, or conflict resolution.

· The HOA manages complex building systems and amenities or multiple properties and facilities.

· The HOA has significant membership, making routine billing, correspondence, rule enforcement, and complaint management particularly time-consuming.

· An HOA property management company can leverage its existing relationships to get association discounts on services (e.g., insurance) or with contractors (e.g., lawn maintenance companies) that they couldn’t otherwise access.

Based on these guidelines, there are a few other essential considerations if the HOA needs to hire a property management company.

Factors to consider when hiring HOA property management

First, check the HOA's governing documents to see if there is an explicit prohibition on hiring a property manager or third-party provider to carry out the HOA's duties. This is also an excellent time to check how the governing documents accurately describe the HOA’s responsibilities. You might discover that the HOA has been gradually taking on roles and responsibilities that are the homeowners' obligations.

Next, carefully craft a scope of work for prospective HOA property managers. Hiring a property management company doesn’t have to be an all-or-nothing engagement. For instance, the HOA might decide to be responsible for specific tasks, like dues collection and bill processing via an HOA management software, while outsourcing building and facility management.

Lastly, HOAs should interview (and conduct background/reference checks for) a range of property management companies in their search for the right fit. It’s not enough that the selected association management company is equipped to provide the services outlined in the scope of work—it should also truly understand the values and long-term goals.

Florida is feeling the impacts of the 2022 Condo Safety Act. A Structural Integrity Reserve Study (SIRS) is a newly developed form of reserve study required by Florida Statute SB 4D. It is designed to ensure that Condo Owners’ Associations reserve funds for the long-term maintenance and necessary replacement of critical structural elements in their buildings. Florida has more than 27,000 condo associations that represent owners of more than 1.52 million condominiums with approximately 3 million residents.

A licensed engineer or architect must perform SIRS. SIRS must be commissioned for all buildings 30 years of age or older with three stories or more. Any three-story or higher building within three miles of the coastline must have an SIRS completed for any building 25 years or older.

Compliance deadlines are imminent.

Statute amendments can exclusively target specific engineers and architects with a malpractice history.

8 Elements That Make Up SIRS

1. Roof

2. Structural Systems

3. Fireproofing & Fire Safety

4. Exterior Painting & Water Proofing

5. Plumbing

6. Electrical Systems

7. Windows & Exterior Doors

8. Other elements over $10,000 that have an impact on the structural integrity of the building

 Updated: September 11th, 2024