Homeowners associations (HOA) have various responsibilities, such as enforcing community guidelines, for which the association charges a fee. HOAs are crucial to the well-being of a community, as they provide services like landscaping and public event spaces. However, their responsibilities are limited. For example, HOAs don't typically handle property management because their members are volunteers.

While HOA companies may sometimes take on this responsibility, it's typically outsourced. HOA property management companies like Integrated Mountain Group can take on responsibilities such as collecting rent and fees, accounting, maintenance, and more. While costs will vary by property, there are some things you should consider. 

Drawbacks of HOAs Managing Their Property

HOAs can choose to take on property management, which can be a viable route. Doing everything in-house can save HOAs, and therefore residents, money. However, HOAs that manage larger properties can quickly be overwhelmed. The day-to-day management of a property is no easy feat, demanding constant attention from volunteers, who may have limited time to give.

Legal and financial liabilities are other issues to consider, especially in Colorado where there are many HOA-specific laws. An HOA could land in hot water if taxes are prepared incorrectly, and it can be vulnerable to lawsuits if legal contracts between residents and the property aren't up to snuff. 

Difference Between HOA and Property Management

The two are used interchangeably but, while they are similar in many ways, there are key differences you should be aware of before considering either of these services. Both types of companies manage the client's property. However, the main difference is standard property management typically manages commercial properties, such as office buildings and retail parks. HOA property management companies, on the other hand, deal with residential properties like housing communities, condos, and apartment buildings. 

Services Provided by HOA Management Company

Depending on your needs, you can negotiate the services provided by the HOA management company. For smaller properties, selecting only the most necessary services, like bookkeeping, can keep costs down. While not all HOA management outfits offer the same services, these are the services you can generally expect, such as:

• Landscaping 
• Resident/tenant communication
• Late fee collection
• Accounting 
• Enforcing rules
• Managing relationships with vendors

How HOA Property Management Fees are Structured

There's no industry-standard fee that HOA property management companies charge because the cost depends on several factors, with the number of units within the property typically being the most important factor. An HOA property management company may charge a percentage of the rent of each unit, though it's more common in cases where there are fewer units.

In most cases, an HOA property management company will charge anywhere from $20 to $50 per unit per month. The per-unit price will, of course, depend on the market the property is in, with more expensive properties in lucrative housing markets demanding higher fees. While more units will equal a higher overall fee, a larger number of units may warrant a discount from the company, as the resources required to manage the property can be easily scaled without incurring additional costs. 

Aside from monthly fees, HOA property management companies may likely have other charges, such as:

• Onboarding fee — When you sign on with an HOA property management company, you might be charged an onboarding or initiation fee to cover the costs of migrating all essential business information, such as documents and accounting books, to the company. The fee will depend on the number of units or residents within your community, which can balloon the initial cost of hiring an HOA property management company. 
• Additional fees for work not stipulated in the contract — The monthly fees charged by the HOA management company will cover whatever is stated in the contract. Anything not defined in the contract as covered by the monthly fee will cost extra. 
• Exit Fee — If the HOA decides to terminate the partnership for whatever reason, there is typically a fee associated with covering the costs of transferring everything back from the company. In cases where the contract was terminated early, the company could continue to make changes until the contract ends. 

The Integrated Mountain Experience

HOA and community association property management are just one of the many services Integrated Mountain offers customers in the Roaring Fork Valley, which the company has called home for over 15 years.

As an HOA property management company, Integrated Mountain Group provides HOAs with a complete package of services, from customized association management and maintenance to legal compliance and accounting services. You can expect all of these services from Integrated Mountain Group:

• In-house maintenance staff
• Around-the-clock maintenance service 
• Annual budget monitoring
• Tax preparation and audits 
• Appropriate insurance and processing claims
• Document and record-keeping 
• HOA board meeting assistance
• Cloud-based software solutions 
• Web portal for residents
• Online payments for residents

If you're considering HOA or commercial property management in Glenwood Springs and the surrounding areas, contact Integrated Mountain Group at (970) 945-7653.