What does an HOA management company do, and what does it cost?
By OurHOA · General information · Revised
Compare the contracted work, approval limits, reporting, and total fees before deciding whether a management proposal meets your community’s needs.
Start with the scope of work
An HOA management company performs the work assigned under its agreement and applicable law. That might include owner correspondence, meeting preparation, assessment administration, bookkeeping, vendor coordination, and inspections. Do not assume that a proposal labeled full service includes every task. Ask for a written schedule showing what is included, how often it happens, and who is responsible for work outside the contract.
Define who can authorize each action
The board and manager need a clear process for instructions, spending approvals, emergencies, and decisions reserved to the association. Avoid assuming either that the manager can decide everything or that it can never act without a new board vote. Florida section 468.4334, for example, describes the manager as an agent acting within authority supplied by a written contract or the statute. It also imposes professional standards. Other jurisdictions and association documents can differ, so review the actual authority being delegated.
Ask what the board will receive
Request sample financial reports, an issue log, an inspection report, and a meeting packet with private information removed. Agree on report dates and the route for urgent questions. For vendor work, ask who collects bids, checks completion, and approves invoices. For owner requests, ask how receipt, assignment, and follow-up are tracked. A list of services is less useful than a demonstration of how the board will know the work was done.
Compare total cost using the same assumptions
Obtain the fee schedule and ask about recurring charges, additional meetings, postage, after-hours work, special projects, setup, and transition costs. Use the same expected workload for each proposal. As a hypothetical calculation, a $600 monthly base fee is $7,200 annually; four separately charged $150 meetings add $600 before any other extras. Those numbers are an example, not a market quote. Check which charges are payable by the association and which, if authorized, may be billed to an individual owner.
Check controls and access before signing
Ask how the association can access its records and bank information, how payments are approved, and what happens when the assigned manager is absent. Verify any license required in your jurisdiction and request appropriate insurance evidence. Ask about related vendors, referral arrangements, and conflicts. Have the contract reviewed for renewal, termination, liability, records access, and transition obligations. A professional title does not establish the scope of legal, accounting, or engineering services included.
Choose the workload you can sustain
A limited bookkeeping agreement, broader management contract, and volunteer-run arrangement assign different amounts of work to the board. List the recurring tasks, who can perform them, and who covers absences before comparing prices. Community size alone does not determine the right choice. Software can organize records and requests, but someone still has to review reports, make authorized decisions, handle exceptions, and follow through on maintenance.
Sources
These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.