Condo Association Management Blog

The Roles and Duties of Property Management to HOAs

  

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A property management agreement should clearly define the extent of the management firm's area of responsibility and make clear the fact that the firm is the agent of the HOA. As an agent, the firm has the authority to enter into contracts on behalf of the HOA. It has the authority to take other actions on behalf of the HOA. The firm must disclose its agency relationship to third parties in order to avoid liability for the firm.

Property management firms may have many duties, including the following:

• Locating tenants to fill vacancies or purchasers to buy units through advertising, real estate brokers, or rental agencies
• Selecting tenants or owners who fit in with existing tenants or owners and checking their financial qualifications
• Preparation, completion and renewal of leases
• Assisting with sales contracts
• Maintenance of the building and grounds
• Making property improvements
• Hiring and supervising personnel to staff and maintain the property
• Negotiating contracts with outside maintenance people
• Dealing with tenant or owner complaints
• Keeping records and developing a record-keeping system
• Paying bills and periodic auditing of accounts
• Collecting rents and condo fees
• Maintaining adequate condo association insurance on the property
• Preparing financial statements