When a new neighborhood or apartment complex issuing built, the building company is usually pre-occupied with the homes that are being built and trying fill the homes that have already been built. The building company often do not have time to manage the community, so that responsibility falls on the first residents. These residents band together to form a homeowners association (HOA) so that they can manage and oversee communal areas and issues relating to the care of the neighborhood.
However it is often difficult to find enough new residents who have the time to serve on an HOA board and are interested in doing so. Even when there are enough interested residents, it is very rare that these individuals will have the competencies that are needed to run the community effectively. For this reason, the building company or the HOA will hire a homeowners association management company. These companies help free up time for the HOA board members by providing legal, accounting, and other skills that volunteer HOA members are not likely to have while at the same time managing HOA services like care of communal areas. The builder benefits from having one of these groups in place because it ensures that the community is well maintained as it is being shown to potential buyers. Additionally, the neighborhood becomes more marketable when the builder can tell buyers that a homeowners association management company already manages it.
While neighborhoods of any age can hire a homeowners association management company, it is most beneficial to do so right when the HOA is first formed. The reason for this is because an HOA management company can speed up the HOA formation process and make sure that everything is done correctly at the beginning so that there are no problems down the road.
When an HOA is formed, it must complete certain paperwork in order to gain a legal standing. The organization must then acquire a tax ID number and will need to establish two bank accounts: one for operating funds and one for reserve funds. A homeowners association management company that has experience completing this process will be able to help the HOA board become legally recognized as quickly as possible so that it can begin collecting dues.
HOA boards are successful if they are organized properly, so another thing that an HOA management company can do after the board is established is help create subcommittees. They might create subcommittees to focus on specific HOA services, and then provide training for members of the subcommittee so that they can complete their assigned responsibilities. Finally, the homeowners association management company will place an employee on-site to lead meetings and take care of day-to-day operations around the community. This professional will have experience working with other communities and will also be trained in proper bookkeeping techniques so that he or she can provide guidance to the less experienced HOA board members.
By hiring a homeowners association management company when an HOA is founded, builders and community members ensure that the community will be run properly and efficiently.