The core difference between an HOA manager vs Property manager lies in their primary focus. The job of a property manager (working for a landlord) primarily involves managing rental units, including leasing, screening tenants, and maintaining the physical condition of the properties.
On the other hand, the job of an HOA Manager is to serve as a representative for the Home Owners Association, which primarily focuses on enforcing rules/CC&Rs set by the Board of Directors, maintaining Common Areas, and overseeing the financial aspects of the Community.
This article will further analyze the difference between a property manager and an HOA, their roles, benefits, and more.
Distinction Between HOA Managers and Property Managers (Skills and Qualifications, Stakeholders Served)
An HOA (Homeowners Association) manager and a property manager may look similar at first; each manages real estate, handles financial responsibilities, and coordinates maintenance.
However, the work that both professionals do can be very different in terms of daily activities, requirements for qualification, and who they provide services to. Recognizing this distinction will assist you with finding the most appropriate professional for your individual needs.
Stakeholders Served
The primary difference is who they report to. The property manager reports to a single landlord or investor(s) with ownership interest in one or more rental units. They are responsible for protecting their client’s financial interests; finding replacement renters when there is a vacancy; screening potential renters prior to signing a lease agreement; collecting rents from existing tenants; and maintaining the physical structure of the rental unit(s).
On the other hand, the HOA Manager reports directly to the Board of Directors of the Community Association, which collectively represents all homeowners in the community. Therefore, instead of representing a single owner’s interests, the HOA Manager represents the collective best interests of all homeowners.
In addition to enforcing the CC&Rs and managing shared-use areas, such as pools and/or clubhouses, the HOA Manager will be responsible for ensuring that each homeowner complies with the same set of rules and regulations. Bay Property Management Group Philadelphia HOA ensures your neighborhood remains compliant and well-maintained.
Therefore, if you have a rental duplex, then you require a property manager. However, if you are part of a condominium or subdivision HOA Board, you would require an HOA Manager. The stakeholder is totally different.
Skills and Qualifications
Due to the fact that both roles have different stakeholders, the skill sets required for each position will also be different.
A Property Manager must have excellent skills in tenant relations, leasing, maintenance coordination, and local landlord-tenant law. He/she will need to have an understanding of screening applicants, dealing with evictions, marketing vacant units, and calculating cash flow.
Many property managers are real estate licensed, although this is not a requirement in many states. In addition to the licensing requirements, there are several certifications available to Property Managers, such as the Certified Property Manager (CPM) and Residential Management Professional (RMP).
A Homeowners Association (HOA) Manager must have knowledge of Community Governance, Board Relations, Covenant Enforcement, and Reserve Studies. This includes running board meetings, collecting HOA Dues, managing vendor contracts for services such as landscaping and security services, and diplomatically handling violation notices.
Like property managers, many HOA Managers have earned credentials such as Certified Manager of Community Associations (CMCA) and Association Management Specialist (AMS). Unlike property managers, HOA Managers do not deal with tenants but instead deal with homeowner members of the association.
In general, a property manager is concerned about making a profit and occupancy. A HOA Manager is concerned about compliance and maintaining harmony within the community. The main distinction between an HOA Manager vs Property Manager is based on what area they are focused on.
Importance of Understanding these Roles for Smoother Community and Property Management
You may believe that one manager is as good as another. Unfortunately, selecting the incorrect type of manager can create unnecessary confusion, delay, and expensive errors. Here are some benefits of understanding what both bring to the table:
Avoid Costly Misaligned Expectations
If you use a property manager to oversee your Homeowners Association (HOA), that person will likely concentrate on items such as renting/leasing, tenant turnover, etc. However, in your association, you do not rent homes; it is composed of owners. You require an individual with knowledge of Covenants, Board Meetings, and Reserve Funds.
The property manager could potentially overlook enforcing the Rules & Regulations or failing to collect assessments correctly. This lack of understanding and subsequent mismanagement could cause homeowners to become angry, decrease home value, and create potential problems with the law.
Ensure Proper Legal Compliance
The landlord/tenant laws and HOA governing documents are two separate legal systems. A property manager will be familiar with Eviction Procedures and Security Deposit Laws. An HOA Manager will know how to enforce Architectural Guidelines and hold violation hearings without crossing into areas where he/she does not belong.
Merging these two can put you at risk for lawsuits. For instance, if an HOA Manager tries to evict a homeowner, this is totally outside his/her authority. Likewise, if a property manager fines a tenant for lawn maintenance, there may be a conflict with local ordinances. Understanding what each position entails allows for compliance.
Improve Communication and Accountability
If you understand exactly what is expected of every single manager, then they will be held responsible for their work. Expecting a Property Manager to collect rent on time, keep vacancies down, and keep the property up; an HOA manager to enforce covenants fairly, run Board meetings in an orderly fashion, and fund reserves appropriately.
Clearly defined expectations help avoid frustrations. You are unlikely to fault an HOA manager for a vacant rental unit or a property manager for a poorly enforced parking violation.
Protect Property Values and Community Harmony
A managed rental property maintains its value and produces consistent cash flow. A managed HOA maintains property values because it enforces that all owners adhere to the same standards.
By hiring the correct professional, you are protecting your investment. A Property Manager screens potential renters who respect the property. An HOA Manager ensures that all Homeowners are maintaining their lawns and exterior walls.
Conclusion
Hiring the right manager is about understanding the differences. A property manager works for a landlord, working with tenants, managing rentals, and collecting lease income. An HOA manager works for a community board of directors (the governing body) and focuses on enforcing the Covenants & Restrictions (CC&R’s), maintaining common areas, and ensuring homeowner compliance. Choose which type of Manager you work with.
