Condo and HOA Management Duties

Management Duties:

Expectations of a Management Company

When selecting a management company to serve your association, or to evaluate the current management company, here is a list of reasonable professional service expectations:

Financial Services

Monthly Financial Services

Assist the Board of Directors in preparation of a fiscal year operating budget

Collect assessments and other fees

Collect special assessments*

Deposit all income in association accounts

Maintain separate bank accounts in association name

Provide payment coupon books to members for payment of assessments*

Provide follow-up contact to delinquent payees

Assist legal counsel with delinquent collections; provide necessary documentation

Pay authorized association bills

Provide copies of paid association invoices upon request

Transfer funds to or from reserve account with board approval

Monthly Financial Statements

Prepare current balance sheet

Prepare monthly income and expense statement

Prepare cumulative income and expense statement

Prepare comparative actual to budget statement

Provide check register (disbursement journal)

Reserve Items

Follow board-adopted long range reserve plan

Solicit proposals for reserve plan

Review reserve investment policy

Insurance Items

Review insurance coverages

Review bond coverage

Solicit bids for insurance coverage

Accounting Services

Arrange for preparation of tax returns (by CPA)

Coordinate CPA review/audit

Provide payroll accounting

Monitor investments

Administrative Services

Monthly Administrative Items

Attend regular board meetings

Prepare written management report for board meetings

Prepare board meeting agenda

Handle member telephone and written correspondence and requests

Prepare and mail deed restriction violation notices

Administer requests for property modifications and alterations

Other Administrative Items

Prepare and distribute meeting notices to members

Plan and prepare annual business meeting

Distribute annual meeting minutes

Maintain member roster

Maintain renter, lessee, and resale list

Work and meet with association attorney for routing matters

Publish and distribute association newsletter*

Provide training and education for new board members and personnel

Provide new property owners with welcome information*

Prepare status letters and resale certificates*

Maintain association financial files

Maintain board and committee files

Process and administer insurance claims*

Maintenance Services

Obtain bids and execute maintenance contracts

Monitor performance of maintenance contracts

Administer capital replacement contracts*

Review common area buildings and other property

Report policy violations to the board

Process routine and emergency work orders

Maintain 24-hour answering service for emergencies

Facilitate emergency/authorized access

Review and update association property inventory (annually)

*often an additional charge above monthly management fee

Source: Kramer-Triad Management Group-Published in Association Times: August 2008