Is there any difference between managing a Home Owners Association and Community Association? In fact it is two sides of the same coin as any Southern California property management company will tell you. These companies have provided professional managerial services to several HOAs who have understood the benefits that can be derived from the services. The most important difference between HOAs that are managed by its own members and those managed by a professional company is in the quality of management that makes a lot of difference to the quality of living of the residents and home owners. Life becomes easy for the Board of Directors of the association who can devote quality time in developmental works as the day to day activities are taken care of by the company that provides property management services. The Board becomes more active and agile with the support and inputs from the hired management services.
Who are the beneficiaries of Southern California property management services? All property owners belonging to the community that is managed by the professional company including the Board of Directors are the beneficiaries of the services. The Board of Directors is relieved from all kinds of micro management of the association which are now looked after by the company. The Board members can now take up the important policy making role and work towards the development of the community with focused attention. The company helps to bridge the gap between the members and the board by maintaining proper liaison with all stake holders.
Protecting HOA Funds
The functioning of the HOA depends a lot on its financial strength. Engaging a professional company would enable the Board members to have access to professional advice and adopt adequate measures that ensure proper protection and utilization of funds. Since it is big money, there is need to handle it carefully so that thefts and misappropriation of funds can be prevented. Although such incidents are not frequent but it would be foolish to rule out the possibilities unless you engage a Southern California property management company to take care of it. The company has trained professionals who can introduce the best practices in managing accounts that makes the system almost transparent and fool proof against any malpractice.
Checks and Balances
- There are some checks and balances that are introduced in the systems to make it more sound and safe:
- There should be dual signatories on checks of a certain designated value. The limit can be set by the Board of directors who can take the most rational decision depending on the average value of daily transactions.
- Bank statements are to be reconciled regularly and presented for review by the board members. Any discrepancy that might occur in the statements has to be brought to the notice of the Board of Directors immediately.
- The check signing authorities should not be empowered to sign on invoices for payment.
Funds are the lifeblood of any HOA and securing it in the right way is essential for effective functioning.