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HOA vs Property Management - What’s the Difference?

Juan Martinez • June 29, 2022

While property management and homeowners associations (HOAs) sound like they might do the same job, they're two completely different types of management. Yes, they both oversee housing communities, but the people who run each type have different expertise and skill sets to do their job. Use this guide to learn more about HOA responsibilities and property management duties.

What Are HOAs?

Many neighborhoods, condo complexes, and subdivisions contain multiple housing units owned by different people. These homeowners might share responsibilities for certain aspects of that community. It's similar to what neighbors would expect of others when maintaining properties. Those who purchase property in this specific community automatically become HOA members.

In most cases, each member of the community remains responsible for his or her property, even if it's used as a rental property. However, the common areas or corporately owned property are different. This space is maintained by the HOA and covered by dues that residents pay. Certain HOAs are restrictive as to what members can do with their property.

As a result, these communities form HOAs and create covenants or rules that property owners must follow. While all HOA members can vote on bills, the HOA board members have the ultimate responsibility to ensure that rules are followed and other responsibilities are met. These members are overseen by an HOA management team, so the board members aren't required to confront owners about violations.

What Do HOAs Do?

According to iPropertyManagement, HOAs in the United States manage 355,000 communities with almost two dozen new associations created daily. HOAs are responsible for certain tasks, some of which include the following:

Securing insurance for the common areas. These areas aren't the financial responsibility of individual property owners, but they can enjoy these communal areas.
Maintaining communal areas. These communal areas might include swimming pools, clubhouses, and playgrounds. Since these are common areas and not owned by one person, it's up to the HOA to ensure these areas are properly maintained.
Setting and collecting monthly or annual dues. The HOA might have a deposit box or allow for recurring fee collection regarding HOA fees. These fees are usually collected monthly, but there might also be annual fees as well.
Managing delinquent dues. If homeowners are late in their HOA payments, the HOA management has the right to go after the fees and associated penalties.
Determining the budget for allocation of HOA dues. The budget is usually set manually by the HOA board of directors. The board is also responsible for informing homeowners how the money is allocated.
Hiring contractors and staff members. If work needs to be completed on common areas, the HOA does some research and hires people to get the job done.

What Do Property Managers Do?

A property management company usually oversees property owned by a corporate entity or an individual who opts to lease or rent the property. The main purpose of the company is to protect real estate investments and passive income. A property manager responds to repair or maintenance requests, making sure the property is being well-cared for. It's important to note that some property managers do work for HOAs or represent one or several owners in the community. The HOA can also hire property managers to manage corporately owned areas.

A few examples of what property managers do include the following:

Adheres to landlord and tenant laws and regulations. For instance, some states have specific requirements as to how much tenants pay for security deposits. A property manager ensures the tenants aren't overcharged, which can cause legal issues.
Acts as an on-site expert. For property owners who rent or lease out their property, having a property manager available who can take care of tasks on-site is invaluable. This comes in handy when the property owners live in another state.
Fixes maintenance issues. As mentioned, property managers handle maintenance requests. These tasks can include broken appliances and unwanted pests in the residence.
Shows property to potential tenants. For property owners worried about having an empty unit sitting around, property managers can show the property to potential tenants. This option is convenient, again, if the owners live far away.
Collects and deposits rent. Property managers obtain rent from tenants, and they might use online sites or payment apps to collect the money. They might also be responsible for handling delinquent payments and evictions.

Property Managers and HOA Similarities

One of the main ways that property managers and HOAs are similar is that they both involve managing housing communities. Often, these two groups work together to ensure the community looks its best. While it's not the property manager's responsibility to ensure the tenants follow the rules, the property manager can assess fines for HOA rule infractions.

Property Managers and HOA Differences

One of the main differences between property managers and HOA involves when the organization was formed. An HOA typically forms after a community has been established, while a property owner's association is set up before the community is developed.

Also, a property manager can ensure that the property adheres to standards set forth by the HOA. On the other hand, the HOA can enforce rules that the property manager cannot. For instance, if the tenant fails to adhere to HOA rules, the HOA can legally apply a lien on the property or asses fines. Homeowners can use a property manager to make sure the tenants follow the rules.

Property managers aren't responsible for common space found within the community. Walking trails, parks, and swimming pools are the responsibility of the HOA. Simply put: the property manager is responsible for the property and nothing else. On the other hand, the HOA doesn't manage the property. They simply provide a list of rules that owners must follow so that the residence fits in with the rest of the community.

Many people use the terms homeowner's association and property managers interchangeably, but they're not the same. Property managers deal more with the actual property, while HOAs ensure the community is a safe and well-kept living experience for members. To learn more about how property managers operate, reach out to Americana Property Management.

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What Does a Property Management Company Actually Do? Behind the Scenes Look

November 26, 2024

A lot of people think property managers just sit back, relax, wait for the phone to ring, collect rent, and that's it. My name is Jorge Rodriguez, president of Americana Property Management in Las Vegas, and I want to show you what really goes on behind the scenes in property management. Should You Hire a Property Manager? Whether you own one property or twenty, there comes a point when managing everything yourself becomes overwhelming. At Americana Property Management, we typically help owners who: Own multiple rental properties and can't keep up with all the demands Live far from their Las Vegas investments Want their rental income to be truly passive Don't want to deal with hiring maintenance staff and contractors Can afford to invest 8-12% of their rental income into professional management The cost of property management isn't just an expense - it's an investment in protecting your property and maximizing its value. Let me show you exactly what I mean. How We Protect Your Investment A lot of owners don't realize how much liability they take on when they self-manage. At Americana, we: Stay current with all landlord-tenant laws Use legally-sound lease agreements that protect your interests Handle evictions professionally when needed Document everything to protect you from false claims Maintain detailed records of all income and expenses Take care of tax documentation Most importantly, we act as a buffer between you and your tenants. When there's a challenging situation - like late rent or lease violations - we handle it professionally so you don't have to be the "bad guy." How We Find Qualified Tenants The number one thing is making sure we find a qualified applicant for your home. At Americana Property Management, we market homes on over 50 websites, including: Zillow Trulia Realtor.com Apartments.com We also list properties on the MLS and work with other realtors to show our homes. We've found that applications from realtors tend to be better because the realtor pre-qualifies them before showing homes. Our Tenant Screening Process When we receive applications, we put them through a very strict verification process: Background checks Credit checks Rental history verification Employment verification Reference calls We want to make sure the person we're putting inside your home is going to pay rent on time and take care of the property. This verification process is vital to successfully managing your property. Once we complete the verification process, we always reach out to the owner with our findings and get their final approval before moving forward. The Move-In Process Setting Up the Lease We draft up a landlord-friendly lease agreement that protects everyone involved - the owner, the property management company, and the tenant. This gives us a legal binding contract that we all must abide by, preventing any misunderstandings in the future. Move-In Orientation Other property management companies might call this a move-in inspection, but we take it a little further. We: Document the condition of the home with pictures Demonstrate how the home functions, including: Where to shut off water if there's a leak How to reset breakers How to reset a GFCI How to relight a water heater How to change filters How to change batteries in smoke detectors and thermostats Ninety-five percent of work orders are very small and something the tenant can take care of. By showing them how during the move-in orientation, we save our owners money on unnecessary maintenance calls. How We Handle Day-to-Day Property Management Rent Collection We make sure rent is collected by the first of the month. Tenants have until the third to pay with no late fee - that's their grace period. On the fourth, they're charged a 5% late fee. If a tenant still doesn't pay rent, we start serving legal notices and ensure we follow through on our collection efforts. Maintenance and Repairs Tenants can submit work orders through our online portal - the same place they make rent payments. When we receive a work order: We inform the owner We dispatch our vendor to diagnose and repair the issue If the cost exceeds our approval limit, we contact the owner so we can make the right decision together Our vendors provide us discounts because of the volume of work we give them. These savings get passed on to our owners - you're getting highly qualified vendors for less than what you'd pay finding someone through Google. Working with Home Warranty Companies If you have a home warranty, we handle everything: Filing the claim Coordinating with the tenant Making sure the vendor goes out Following up to ensure everything is working properly HOA Violations If your property receives an HOA violation: For tenant-caused issues: We contact the tenant and ensure they fix the violation For owner responsibilities: We communicate with you, get bids if needed, and help choose the right vendor to resolve the issue How We Save You Money with Our Vendor Network One of the biggest advantages of working with a professional property manager is our vendor relationships. At Americana Property Management: We have trusted vendors for every type of repair and maintenance Our vendors give us significant discounts because of our volume We only work with licensed, insured professionals We know which vendors do quality work at fair prices We handle all vendor coordination and payment Think about it: When you search for a plumber on Google, you're paying retail prices and taking a chance on quality. Our vendors know they'll get consistent work from us, so they give us better rates - and those savings get passed directly to you. How We Keep You Informed We believe in complete transparency with our owners. Through our online portal, you can: See real-time updates on rent collection Review maintenance requests and approvals Access monthly financial statements Track property performance View all property-related documents Every month, you'll know exactly: How much rent was collected What maintenance was performed Any upcoming expenses or needs Your property's bottom line We take care of your property like it's our own, and we make sure you always know what's happening with your investment. The Lease Renewal Process We start the renewal process 90 days before the lease expires. During this time we: Compare similar properties to see if a rent increase (usually 3-5%) is justified Inspect the property to ensure it's being properly maintained Review the tenant's payment history We take all these factors into consideration before offering a renewal, and we always get your blessing before moving forward. Most of our initial leases are for one year. This gives us flexibility - if a tenant isn't paying on time or taking care of the home, we can give them a 30-day notice to vacate instead of renewing. However, when we do find good tenants, they tend to stay in our properties between 3 to 5 years. We really try to find long-term tenants so you can make consistent income from your investment. Looking for Property Management? Our main focus is making sure your interests are taken care of. You collect a nice check every month, and we handle all the headaches. If you have any questions about how we can help manage your property, you can reach us at 702-719-2100 or email us at pm@americanapm.com.