The basic duties of an HOA manager are similar to those of any property manager; to protect and maintain the value of an investment. Specific tasks of an HOA manager help the association with day to day responsibilities as well as long term planning.
Budget Planning / Day-to-day Accounting and Collections
Creating the annual budget is one of the duties of an HOA manager. The budget is worked out with the Board of Directors and the manager must take what was spent the previous year and turn it into something every can comprehend, approve of and vote on.
In addition to these responsibilities, and HOA manager also will manage the dues and collections, as well as the overall accounting of the Association.
Vendor management is another part of HOA management. We need to oversee all project management and take care of third party contractors. This oversight is necessary on small work orders and repairs as well as large projects such as roof repairs and siding installation.
Dues and Resale Certificates
An HOA manager also takes care of the collection of dues. We stay on top of delinquent accounts and try to minimize the late payments because those delinquencies impact the budget of the HOA. Part of the Minnesota purchase agreement is the HOA resale certificate. These have to be completed prior to each townhome selling or changing from seller to buyer. The buyer must be able to inspect the resale certificates so they know they are purchasing a townhome that has a solid financial footing. Buyers want to know the association can manage things like lawn care and snow removal, as well as basic repairs.
Financial PlanningLong range financial planning is another responsibility of an HOA manager. We can hire a third party engineer who is a reserve study specialist and get a report about how many years the roof has left, or how long it will be until the parking lot needs to be replaced. The HOA manager then takes those numbers and creates a 30-year planning spreadsheet. The inflation potential is accounted for and we try to make sure the money will be in the right account when it’s time to replace something expensive.
This is just a brief overview of what a Minnesota HOA manager can do for your townhome or condominium community. If you have any questions or you would like to hear more about our services, please contact us at 33rd Company Minnesota.