Should You Hire an HOA Property Manager in Oakland?

Should You Hire an HOA Property Manager in Oakland?

Hiring and Working with a Property Manager in Oakland, CA

Planned unit developments, townhouses, condominiums, subdivisions and gated communities in Oakland will almost always have a homeowner’s association (HOA). The HOA enforces the by-laws, covenants, conditions, and restrictions. They collect dues from their residents. The association performs routine maintenance, repairs, and upkeep of the common areas. The board of directors of the homeowner association is responsible for all these duties and more. If you are part of the board of directors, should you hire an HOA property manager? Why would a homeowner association use a management company?
 

Why Homeowner Associations in Oakland Hire Property Management Companies

It can be pretty easy to run a homeowner’s association that is small with few shared amenities, but planned unit developments that have hundreds of residents can get complicated and time consuming really fast. What starts out as a couple hours on the weekend quickly turns into nearly a full-time job. The amount of work can easily become overwhelming and often overlooked. An HOA property management company can use their expertise, management skills, and experience to oversee the day-to-day responsibilities of the association.
 

Besides saving the HOA board of directors considerable time, hiring a team of property managers can actually save money. Experienced property management companies have the skills and experience to know what course of action to take when emergencies occur. They have the network to hire repairmen that will do the job correctly the first time. Rather than waiting for a repair, a homeowner association property management company will schedule regular maintenance to extend the life of structures, systems, and equipment. In the end, their skilled management can save the association thousands of dollars and hence cover the cost of hiring an HOA property manager.
 

The Duties of an Oakland HOA Property Management Company

If you are a member of the board of directors in a mid to large-sized homeowner’s association, have you ever taken the time to write down all of the responsibilities, duties, and tasks that your board performs and oversees? While this list is by no means exhaustive, it will give you an idea of why you may be feeling overwhelmed. A homeowner association will:

• Oversee community activities.

• Care for all the landscaping and grounds maintenance.

• Contract for snow removal.

• Manage association security.

• Enforce the covenants, conditions, and restrictions.

• Schedule the maintenance and handling of repairs to all the common areas including playgrounds, gyms, indoor and outdoor pools, and community buildings.

• Oversees the hiring and managing of all contractors.

• Determines and adheres to the annual budget.

• Collects dues from residents.

• Researches and purchases liability and property insurance.

• Pays all expenses including common area utilities, taxes, insurance, mortgages, repairs, contractors, and any staff.

• Obtains court judgments for owners in default.

• Handles owner complaints, requests, suggestions and emergency calls.

• Hires and trains onsite staff.

• Maintains all the financial records and prepares end-of-the-year reports.

• Communicates with the residents.

• Handles all emergencies.

• Ensures that the association complies with all state and federal laws and requirements.

Large condominium associations are responsible for taking care of the exterior and common areas of all of the condominiums; this in itself can become a full-time job. Many homeowner associations hire a licensed property management company to take care of these duties. This frees up a lot of time for the residents who have volunteered to help look after the HOA. It can greatly reduce any tensions that may exist within the HOA.
 

If a homeowner association decides to self-manage, they are going to have to invest in management and bookkeeping software as well as training someone how to use it. Good management software systems can cost hundreds and even thousands of dollars annually. An HOA property manager will have all of that software available for their use along with trained personnel to ensure that the records are accurate and up-to-date.
 

In addition, some homeowner associations lack enough residents that have the background and experience to fill these necessary management roles. Hiring an HOA property management company can reduce liability and the potential for lawsuits while making the management more cost effective and professional.
 

How to Choose the Best Oakland Homeowner Association Property Manager

Picking a good property manager is critical to the success of the association. When choosing your HOA manager, look for these important factors:

• Communication: Look for a company that communicates using your preferred method. Would you prefer text messages, emails or phone calls? You want to find a management company that will regularly update you on the status of the association.

• Contract: Make sure you have a written contract that spells out the fees, responsibilities, and chain of command. Look for a contract that has a fair termination clause in case there are any problems down the line.

• Licensing: Most states are requiring that property management firms are licensed. This includes not only the business but also the managers as well. Someone in the office should also have a real estate broker’s license.

• Experience: Look for companies whose staff have a strong background in real estate sales and/or general contracting. They should not be new to the business and they should be able to provide references of other current or past clients that you can contact.

• Insurance: Make sure that your HOA property management company carries errors and omissions (E & O) insurance as well as a broad liability insurance policy. While this does not replace the insurance requirements for the development, it will help to reduce liability.

• Referrals: Ask around to other HOA and see who they are using. If they are satisfied with their performance and work ethic, then no doubt your association will be pleased to use them as well.

Hiring a qualified property management agency to look after your homeowner association is an excellent way to improve the services to your residents. A property management company will help you streamline maintenance and repairs, effectively collect dues, and reduce the stress on the HOA volunteers. Once their management team becomes familiar with the property, you will look back and wonder why you tried to handle all of it on your own.

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