Is there a difference between HOA and property management? Many homeowners and communities use the two terms interchangeably. However, many qualities and features differentiate HOA management from property management. Understanding these differences is crucial.
HOA vs Property Management: Definitions
HOA and property management focus on maintaining properties, but their roles and responsibilities differ significantly. Before getting into the specifics, it is important to first define each term.
What is HOA Management?
As the term suggests, HOA management focuses on managing and maintaining homeowners’ associations. It supports HOA boards in running their communities and deals with financial management, rule enforcement, and common area maintenance, among other things.
What is Property Management?
Property management oversees rental properties on behalf of landlords. It handles tenant issues, rent collection, and property maintenance.
Unlike HOA management, property management typically does not manage entire communities. However, there are cases wherein a property management company oversees a whole condo building or apartment complex.
What is the Difference Between HOA and Property Management?
Although HOA and property management share some similarities, they are vastly different when you get to the root of their services. Homeowners, board members, and landlords should learn the distinction between them, as it will help hire potential managers.
It is often difficult to differentiate HOA vs property management. However, the table below should give you a more in-depth comparison of their roles, responsibilities, and benefits.
Category | HOA Management | Property Management |
Who They Serve | Works with community associations, including homeowners associations, condo associations, townhome associations, and cooperatives. | Works with individual landlords or rental property owners, including a variety of property types (residential, commercial, industrial, and specialty-purpose). |
Primary Role | Assists HOA boards with their duties, including rule enforcement, dues collection, financial oversight, maintenance, vendor coordination, conflict resolution, and legal compliance. | Handles rental operations and tenant-related issues such as screening, application, maintenance requests, and the like. |
Focus Area | Community-wide management and property maintenance. | Individual property management. |
Legal Compliance and Regulations | Adheres to federal, state, and local laws, including the Texas Condominium Act, the Texas Uniform Condominium Act, the Texas Property Code – Restrictive Covenants, and the Texas Nonprofit Corporation Act. Also adheres to the HOA’s governing documents such as CC&Rs and bylaws. | Follows federal, state, and local laws, including landlord-tenant laws, as well as lease agreements. |
Key Benefits | Enhances community living, preserves property values, and fosters homeowner harmony. Helps board members perform their duties. | Reduces landlord stress and ensures steady income flow. |
Maintenance and Upkeep | Common areas and elements. Individual homeowners are responsible for their own maintenance and upkeep. | Ensure individual properties or units are well-maintained or repaired. |
Fees | Collects HOA dues or fees from homeowners. Handles delinquent payments. | Collects rent payments from tenants. Handles late payments. |
Financial Management | Focuses on budget planning, keeping accounting records, preparing financial statements, and planning reserves. | Focuses on collecting, budgeting expenses, and monitoring landlord’s finances. |
Board Support | Assists HOA boards with governance and provides guidance on decisions. | No board support. |
Rule Changes | Assists in making amendments to the governing documents and drafting board resolutions. | Assists in amending lease agreements to change the terms and conditions. |
Foreclosure/Eviction | Can assist with liens and foreclosures. | Can assist with evictions. |
The Need for HOA vs Property Management
Both HOA management and property management are essential. However, the reasons why a community or landlord might need the service can differ, too.
Why Communities Need HOA Management
Communities need HOA management if they struggle with one or more of the following:
- Large Populations. Communities with hundreds of residents can quickly find themselves buried in a mountain of work. An HOA management company can assist these communities in managing their workload, including fielding resident concerns, addressing maintenance issues, collecting fees, and enforcing the rules.
- Extensive Amenities. Associations with extensive amenities or amenities that require extra care typically need HOA management services. An HOA management company can hire the necessary vendors to perform maintenance and repairs, oversee rentals or reservations of amenities, and ensure scheduled improvements go according to plan.
- Complex Governing Documents. Communities with outdated or complex governing documents may find it difficult to enforce them properly. An HOA management company can help such communities understand their governing documents, interpret legal jargon, and even amend them properly.
- Board Difficulty. Board members are simply homeowners who have volunteered for the job. As such, they don’t always have the required experience or expertise to handle their various duties. Furthermore, they might not have sufficient time to dedicate to their service.
Why Landlords Need Property Management
Landlords need property management if they struggle with one or more of the following:
- Multiple Rental Properties. Landlords who own more than one rental property often stretch themselves too thin. After all, they may be outnumbered by their tenants. A property management company has the staff, resources, and tools to handle many rental properties at a time, alleviating the burden of landlords.
- Proximity Issues. Landlords who live far away from their rental properties or vacation homes typically require professional property management. This is because they can’t oversee their properties physically and interact with their tenants personally. It’s challenging to manage a property from a reasonable distance away.
- Lack of Interest. Landlords who simply don’t want hands-on management are better off hiring a property management company.
Why are HOA and Property Management Used Interchangeably?
People often confuse these two terms because both involve property oversight. However, their clients and responsibilities differ significantly. HOA management deals with entire communities, while property management focuses on individual rentals. Both aim to maintain property quality and resolve issues.
The confusion has led to the term HOA property management, which is essentially the same as HOA management. Using the proper terminology when searching for companies to help your community is important. Doing so can save your HOA board a lot of time and effort.
HOA vs Property Management: Explained
As you can see, HOA management and property management may share some similarities, but they are not the same. HOA management primarily focuses on maintaining HOA communities, while property management focuses on managing rental properties. Distinguishing between the two will help you understand the responsibilities of HOA managers and property managers.
Graham Management offers exceptional HOA management services to communities in Houston. Call us today at (713) 334-8000, request a proposal, or contact us online to learn more.
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