Understanding Why Community Associations Use Management Companies
Understanding Why Community Associations Use Management Companies Contact Information


By: Michael Rome, J.D.

This article is not a substitute for consulting with legal counsel in your State regarding the specific fact situation.

The Board of Directors is a group of uncompensated volunteers who should be the policy making body for the Association. Board members often do not have the time or resources to fully manage the Association. This is why so many community associations contract with management companies to assist in the day-to-day operations.

A community association management firm performs many services, including some of the following:

  1. Keeping the financial & corporate records;
  2. Sending out invoices for dues;
  3. Answering questions from the homeowners;
  4. Mailing covenant violation letters;
  5. Remitting payment for the annual property taxes;
  6. Remitting payment for the annual corporate renewal fee;
  7. Assisting with the annual member meeting; and
  8. Supervising (in conjunction with the Board and Committees) vendors such as the lawn & pool companies.

Another benefit of a management company is the consistency of procedures, and maintenance of records, from Board to Board. Having a management firm can also help prevent burn-out on the part of the Board, and free up time for the Directors so they can focus on other matters, such as policy decisions and ruling on appeals from covenant violations.

Being a Board member is a very challenging job, but even more so when the Board has to manage the daily affairs of the Association. Delegating many of the the day-to-day operations of the Association can greatly assist the Board, and therefore the Association as a whole.

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