HOA Managers vs. Property Managers: What’s the Difference?

Homeowners association managers and property managers seem similar on the surface, and the uninitiated may not be able to differentiate their roles. However, the two have very distinct functions and responsibilities.

This guide delves into the most significant differences between HOA and property managers.

HOA Managers vs Property Managers

Homeowners association managers, as the name implies, handle the everyday activities of an HOA, which is a private community that oversees specific developments and neighborhoods.

In contrast, property managers are individuals tasked to supervise the daily operations of residential or commercial real estate.

Both are tasked with managing properties but in very different contexts. Read on for their specific tasks and responsibilities.

Responsibilities of HOA Managers

All HOAs have codified sets of rules and regulations to be enforced within their communities. They also elect officers, including a president, vice president, secretary, and treasurer, to maintain order.

However, HOA officers aren’t compensated for their duties. Some of them may get an honorarium, depending on their HOA bylaws. Still, it’s not a full-time job, and the tasks may become overwhelming.

HOA officers can hire an HOA manager to ensure the system runs smoothly. HOA managers are responsible for the following:

Enforce Rules and Regulations

Homeowners associations have strict bylaws that enumerate the rules and regulations for those living within the community. The HOA manager will make sure all of these are followed and impose sanctions for those who don’t.

One common example is that homeowners must ensure their yard is well-manicured and meets all outlined regulations. If not, the HOA manager will send a letter asking the homeowner to make the needed changes or pay a fine.

Manage Finances

HOAs collect homeowners' fees to effectively maintain and improve the neighborhood. The HOA manager will track these payments, properly account for all expenses, and record all transactions involving HOA funds.

HOA managers also prepare the annual budget and regularly report to the board regarding the financial health of the association.

Take Care of Maintenance and Repair Requests

One of the advantages of having an HOA in a community is that homeowners have a direct line for maintenance and repairs. The HOA manager must have an organized list of suppliers and services to immediately deploy when a homeowner calls for maintenance or repair work.

Handle Complaints and Disputes

HOA managers also receive complaints and disputes within the community. While they don’t have the power to make the decisions to resolve these issues, they can set a dialogue or schedule a hearing with the HOA board.

Schedule Meetings

HOA board members need to meet regularly, and it is the manager’s responsibility to set a schedule and agenda and disseminate these details.

Some HOA meetings include the whole community or at least a significant percentage of them. This is when resolutions or amendments to HOA bylaws are discussed and voted on, and they can only be considered legitimate if a quorum is achieved. For these types of gatherings, the HOA manager must ensure everybody is informed well in advance that their attendance is paramount.

Responsibilities of a Property Manager

Real estate investors and owners with tenants often task third parties to take care of everyday operations for their residential, commercial, or even industrial properties. For this, they hire an experienced property manager.

What are their specific tasks?

Collect and Deposit Rent

Investors purchase properties and rent them out to earn money. Understandably, collecting and depositing rent from tenants is a property manager’s most important responsibility.

For buildings with multiple tenants, the property manager must have an organized list of the amount due and the payment schedule of each one. They must present monthly rent payment reports to the property owner and discuss rent issues or disputes.

Handle Maintenance Requests

Property managers also receive requests for maintenance and repair. They must have service personnel or a company on call to ensure these services are rendered immediately to the tenants who need them.

Follow Landlord-Tenant Laws and Regulations

Property owners may find it difficult to keep track of the ever-changing provisions of local landlord-tenant laws and regulations. The property manager will ensure continued compliance even as these rules change and that all tenants are accommodated based on their existing rights.

Show Vacant Properties

Aside from managing the needs of existing tenants, property managers are also tasked with showing potential renters vacant properties they may be interested in. The manager showcases these spaces on the owner’s behalf and plays a significant role in completing a sale or taking on a new tenant.

Conclusion

Do you need a HOA manager or a property manager? Now that the responsibilities are clear, you can easily determine which one you need to manage your community or property.