Explore common questions about changing management, board roles, and association operations.
The outgoing company must deliver bank statements, signature cards, operating funds, and reserve account records by the contract termination date. The board must update bank signers immediately and audit all opening balances provided to the new company.
Governing documents and state law require complete records to be surrendered within 30 days. Send a formal demand letter via legal counsel if the deadline is missed.
Establish a strict cut-off date. The outgoing company processes invoices up to the termination date; the incoming company takes over accounts receivable/payable starting Day 1. Send homeowners explicit instructions on where to send payments.
A smooth transition takes 60 to 90 days. This allows sufficient time for contract execution, record transfer, bank updates, vendor notifications, and homeowner communication.
Provide the new management company with a master list of active vendors, contracts, and insurance certificates. Notify vendors directly in writing about the management change and updated billing addresses.
In a self-managed HOA, volunteer board members perform all operational, accounting, vendor coordination, and legal compliance tasks directly. In a professionally managed HOA, the board hires an external management company to execute these daily tasks, while the board retains ultimate decision-making authority.
Professional management is typically recommended when a community exceeds 20–30 units, when volunteer board members suffer burnout, when severe delinquency or legal compliance issues arise, or when large capital repair projects exceed board expertise.
No. A management company acts strictly as an agent of the HOA. Only the Board of Directors has the legal authority to enact rules, approve budgets, levy assessments, or vote on fines.
Most charge a flat monthly base fee (calculated per door/unit) for core services (financials, meetings, software access) plus ancillary fees for extra items like demand letters, resale disclosures, postage, or major construction management.
Track key performance indicators (KPIs) such as work order resolution speed, delinquency rates, vendor response time, compliance with financial reporting deadlines, and homeowner portal engagement rates.
Board members owe two main fiduciary duties: the Duty of Care (acting reasonably, prudently, and in good faith) and the Duty of Loyalty (acting in the best interest of the community, free from self-dealing or personal conflicts of interest).
Generally, no—provided they act in good faith under the Business Judgment Rule. HOA governing documents and Directors and Officers (D&O) liability insurance usually protect board members from personal financial liability unless there is fraud, willful misconduct, or gross negligence.
No. HOA board positions are almost universally volunteer and uncompensated to maintain non-profit status and avoid conflicts of interest.
