What Tasks Do Community Association Management Companies Handle?

Administration, finances, advice, and maintenance oversight explained

Decisions are made by the board. A community association management company works on the association's behalf and carries those decisions out. No decision-making power is held by the management company beyond what is granted in the management contract or by the board.

The work generally falls into four categories: administrative support, financial management, advisory services, and maintenance oversight. Each is described below so that Florida boards can see what should be expected.

Administrative Support

Boards are made up of volunteers. Time-consuming tasks are handled by the community manager so that directors can focus on decisions. With support from the management company's office staff, the following are typically handled:

• Preparing and posting meeting notices and agendas
• Attending board and membership meetings and preparing draft minutes
• Maintaining the association's official records and responding to records requests
• Managing owner correspondence, calls, and community notices
• Coordinating annual meetings and elections
• Processing architectural requests for the board or committee
• Sending violation notices as directed by the board
• Keeping the association website or owner portal up to date

Financial Management

• Billing and collecting assessments
• Paying invoices that have been approved under the board's policy
• Preparing monthly financial statements and bank reconciliations
• Drafting the annual budget for the board's review
• Following the board's collection policy for delinquent accounts
• Preparing estoppel certificates for closings
• Coordinating with the association's CPA on the year-end report and tax return

Advisory Services

Best practices are known by experienced managers, and guidance is given to help the board make sound decisions. Advice is commonly given on reserve planning, vendor comparison, insurance renewals, capital projects, rule enforcement procedures, and long-term planning.

Legal advice is not given by a management company. Legal questions are referred to the association's attorney, and the manager then helps carry out the attorney's guidance.

Over time, trust in a manager's judgment grows and operations run more smoothly. That is why a good fit between manager and board matters so much.

Maintenance Oversight

The manager is the board's presence on the property. Regular inspections are carried out so that common areas are kept in working order and rule violations are noted. Day-to-day coordination with vendors is also handled, including:

• Collecting bids and proposals for the board
• Confirming vendor licenses and insurance
• Scheduling and checking contracted work
• Arranging emergency repairs
• Tracking warranties, inspections, and permits

Many boards authorize the manager to approve small repairs up to a set dollar limit, such as a broken sprinkler head or a failed light fixture, so that every minor item does not wait for a meeting. Those expenses are reported to the board in the regular financial package.

What Is Not Handled by a Management Company

• Decisions that belong to the board, such as adopting budgets, setting rules, and choosing vendors
• Legal advice or representation
• Work inside homes or units that is the owner's responsibility
• Services outside the scope of the management contract, unless they are added

One Objective

The many tasks handled by a management company add up to a full-time job, and all of them serve one objective: protecting property values and supporting a well-run community.

A full list of what is offered can be seen on our HOA management services page. To learn how Condominium Associates can support your board, contact us or request a proposal.