Hiring a management company is one of the biggest decisions an HOA board makes. It also raises an honest question: what exactly is the manager there to do? Clear expectations on both sides can make for a better partnership. This article explains the role in plain terms.
The basic idea: the board decides, the manager guides and carries out
An association is governed by its board, under its governing documents and the law. A management company does not replace the board. Instead, it brings experience, structure and steady routines, and it helps carry out the policies the board sets.
Many managers aim to do more than take orders: raising issues they notice, explaining options and offering recommendations. The board then decides, and the manager helps carry out that decision.
What a board can typically expect
What a manager handles depends on the plan the association chooses. Broadly, services fall into a few groups:
Financial work
This is the core of most plans: billing and collecting dues, paying the association’s bills, keeping the books and preparing regular financial reports. Many managers also help the board prepare an annual budget and explain how it compares with past years.
Governance support
On broader plans, a manager may help schedule meetings, prepare agendas, record minutes, and send ARC or violation notices per board policy. This can help keep the association’s paperwork organized.
Longer-term planning and vendors
More comprehensive plans may include help with reserve planning, insurance renewals and gathering vendor bids. The manager may collect options and suggest a path, and the board approves the work.
Communication
Owners benefit from a clear place to ask questions, pay dues and find documents. Many managers offer a portal and help with routine owner questions within the services in the association’s plan.
What managers generally don’t do
Knowing the limits matters just as much. A management company typically does not:
- Set policy. Rules, budgets, dues and major spending are board decisions, or owner decisions where the documents require a vote.
- Settle disputes between neighbors. Disagreements between owners stay with the owners and, where appropriate, the board.
- Act as the association’s attorney. Managers are not lawyers. For legal questions, boards often consult an attorney.
- Act as the association’s accountant or auditor. Managers keep the books, but tax filings and audits are usually done by an independent CPA.
- Do the physical work. Repairs, landscaping and snow removal are typically done by independent contractors the association hires.
- Do everything on every plan. A financial-only plan covers less than a full-service plan, and that is by design.
What the manager needs from the board
A partnership works in both directions. Many managers find the work goes more smoothly when the board:
- Makes decisions in a timely way, especially on budgets and spending
- Speaks with one voice, usually through the president or a designated contact
- Shares relevant information, such as concerns owners raise with board members directly
- Puts decisions in writing or in the minutes
Signs of a healthy partnership
When things are working, boards often describe reports they can understand, fewer surprises and less volunteer time spent on paperwork. Owners know where to go with questions, and decisions are made, recorded and carried out.
If the board often feels like it is chasing the manager, or the manager is waiting for instructions on every small task, it is worth a candid conversation about expectations and whether the current plan fits the association’s needs.
Choosing the right plan
Some associations, especially smaller ones, choose a financial plan and keep governance tasks with the board. Others prefer to hand off more of the routine work. There is no single right answer. Think about how much time your volunteers have, how complex your community is and where you want an experienced guide the most.
Setting expectations on day one
The start of a new management relationship can be a good time to talk openly about how the partnership will work. A short kickoff conversation can cover who the board’s main contact is, how often reports will arrive, how the board prefers to be reached and how decisions will be documented.
Some boards also find it helpful to write down a simple list of the association’s priorities for the year, such as finishing a budget, catching up on records or planning a larger project. That can give the manager a clearer picture of the board’s priorities.
Frequently asked questions
Can our manager enforce our covenants?
Enforcement decisions belong to the board under its governing documents. On some plans, a manager may prepare and send letters the board approves and keep records of them.
Will the manager attend our meetings?
It depends on the plan and the company. Some managers support meetings with agendas and minutes.
Who should owners contact with questions?
Usually the manager, through the portal or by phone, for routine matters within the plan. Policy questions go to the board.
Can we change plans later?
Often, yes. Many associations start with a smaller plan and add services as their needs grow.
Looking for a guiding partner?
Ironhorse Management has worked with Montana boards since 1979. See how our HOA management plans work, or request a proposal for your association.
Please note: This article is for general informational purposes only and is not legal, financial or tax advice. Every association and situation is different. It’s wise to consult an attorney and/or CPA for legal or financial matters, and to review your governing documents and other appropriate resources before making decisions, rather than relying only on this article.
