The real estate industry is a broad business with many players, including tenants, community associations, and property owners. However, there is frequently misunderstanding over the responsibilities of homeowner’s associations (HOA), condo corporations, and property management firms. Clarifying these roles is crucial for fostering better communication and understanding in the real estate ecosystem.
What is Property Management?
Real estate is operated, governed, and overseen as part of property management. Real estate, whether residential, commercial, or industrial, is the main area of concentration, and various services are provided, including maintenance, legal compliance, and rent collecting on behalf of the property owners. Property management services are designed to simplify the complicated responsibilities of property ownership, enabling owners to enjoy passive income without the difficulties of daily management.
What is HOA Management?
HOA Management is a term more commonly used in the United States. It refers to the exclusive to the administration of homeowner’s organizations. These groups are present in planned communities, condominiums, and cooperative apartments to maintain common spaces like parks and swimming pools and to enforce community laws. It functions as a communal living arrangement where owners of individual units comprise the membership. The HOA management oversees the community budgets, organizes meetings, and ensures homeowners follow the rules.
What is Condo Management?
While homeowners’ associations and condominium corporations are both separate legal entities, condo management is confined to condominium developments. Condo management refers to the oversight and administration of a condominium property on behalf of the elected Board of Directors. Unlike a traditional company or corporation, the condominium corporation and its hired management team operates under the guidelines set forth in the Condominium Property Act.
Key Differences in Responsibilities
Property management, HOA management, and condo management have quite different responsibilities in many ways. HOA management specializes in areas with homeowner’s associations and condo management specializes in condominium developments. In contrast, property management covers a wide range of real estate types, including residential, commercial, and industrial properties.
Management Responsibilities
HOA managers are responsible for upholding community rules and bylaws. Alternatively, property managers of rental properties frequently navigate tenancy laws and particular property regulations on behalf of the property owner. Each function also has a different style of engagement with the residents.
The main point of contact for renters in a condo community should be the unit owner unless the owner or group of owners hired a property manager to who responds to their questions and complaints. HOA managers, on the other hand, primarily communicate with neighbourhood residents, many of whom are homeowners, and concentrate on matters relating to the community’s overall well-being.
Condo managers assume responsibility for advising and assisting the condo corporation’s board of directors by overseeing, managing, and administering common property, with the potential for additional obligations as stipulated in the bylaws. Amendments to the bylaws can either broaden or reduce the corporation’s duties regarding condo maintenance and repairs.
Financial Responsibilities
HOA managers focus on supervising community budgets and financial planning. This includes creating and managing budgets, planning for community expenses, and ensuring that the neighborhood’s financial health is maintained.
Residential property managers are more focused on individual units within a community. They are in charge of collecting rent and managing spending for specific property owners.
Condo corporations are obligated to provide annual financial statements, including a budget projecting common expenses, to condo owners. The condo corporation is also responsible for maintaining a reserve fund for significant property maintenance and replacement as it ages. Condo corporations often hire condo managers to assist and advise with these responsibilities.
If a condo owner fails to pay the condo corporation, the corporation reserves the right to place a Caveat on the title, functioning as an equitable mortgage in legal terms. Consequently, the condominium corporation gains the same authority as a bank to seek payment, including the initiation of foreclosure proceedings. Essential documents of the Condominium Corporation, such as the Bylaws and Condominium Plan, are officially registered and accessible through the Land Titles Office.
How a Property Management Company Can Help
Property management companies like Larlyn provide a seamless combination of services tailored to meet the specific demands of both property owners, condo corporations and community associations. We are professionals in property, HOA and condo management. Our strategy is founded on a profound comprehension of the nuances present in each industry, enabling us to offer custom solutions that optimize value for our clients.
Partner with Larlyn Property Management
Larlyn Property Management offers specialized services in property, HOA and condo management, acting as a comprehensive solution for property owners, investors, and communities. We empower you with the understanding needed for informed decision-making, enhancing the value and functionality of both your property and community. Choose Larlyn for a partnership rooted in unwavering commitment to service excellence and customer trust.
