Property management is the process of managing real estate available for lease and involves overseeing routine operations such as collecting rental payment and looking for potential occupants for a space. The property manager often manages another entity or party’s property.

It’ll take more than one article to discuss everything property management entails, but today, we’ll be discussing the major types of services property managers provide.

1. Property assessment

Property managers examine properties inside and out and prepare necessary documentation about their findings. This allows them to determine what repairs or improvements the property may need to enhance the monthly rent while ensuring good ROI. They also do extensive research to figure out a fair yet desirable rental rate for the property.

2. Marketing

Managers are responsible for creating marketing and advertising campaigns designed to inform people about available properties and encourage them to rent them. They also cooperate with realtors, communicate with potential tenants, ensure properties are as alluring as possible, and more.

3. Tenant selection

To determine if a potential tenant is the ideal candidate to lease a property to, the manager investigates their background to confirm their identity, credit history, income, and other pertinent details.

4. Dealing with tenants

Managers help tenants move into and out of properties, collect rental fees, and evict those guilty of infractions. These processes require a lot of paperwork, communication with the tenants, and in the case of evictions, coordination with law enforcement and the court.

5. Inspections

Properties require regular inspections to ensure they’re in good condition and free of possible hazards. Managers also look out for lease and code violations.

6. Maintenance

In case properties need repairs or remodeling, managers provide and supervise various maintenance crews. They establish policies designed to prevent repairs and determine when repairs are required. They build a network of trusted contractors and assign tasks to the right people. They’re also responsible for clearing outdoor areas of trash, debris, leaves, or snow.

7. Assistance with legal issues

In case of litigations or legal disputes, managers provide owners advice and refer them to qualified attorneys.

8. Assistance with financial matters

Managers provide accounting services, document expenditures, make annual financial reports, and more.

Of course, property managers provide such a wide range of services that the above list is by no means a complete list of their responsibilities and duties. If you’re eager to know more information about property management, please feel free to contact So Cal Property Enterprises, Inc. through its corporate website, or give us a call at 951-270-3700. We’d be glad to hear from you!

So you’re thinking of moving into a smaller house, or you’re looking into buying your first-ever home, and it happens to be in a developed community. Naturally, one of the major “stumbling blocks” to making the move is the HOA fee that you’ll be paying monthly, quarterly, semi-annually, or annually, depending on the HOA’s fees collection schedule. You have to make sure that you can afford the HOA dues on top of your monthly expenses. This is but one of the many other concerns regarding homeowners associations that home buyers look into to help them with the decision-making process.

And if you’re a home buyer with similar concerns, these answers to some of the most frequently asked questions about HOAs might be able to help you:

1. Can I check the HOA’s CC&Rs before buying a property?

Yes, you may and should check the HOA’s CC&Rs before buying or even renting a property. CC&Rs are the homeowners association’s covenant, conditions, and restrictions that every homeowner must adhere to, and these include everything that “dictates” each homeowner’s stay in their property, from dues to be collected to standards for maintaining the front lawn and the exterior of the house, and such.

For transparency purposes, the HOA’s CC&Rs must be fully disclosed to the buyer/renter BEFORE closing the deal. If these aren’t made available to you before closing the sale/deal, this is a red flag you shouldn’t ignore.

2. What factors should I check regarding HOA fees?

There are three general things that you should check regarding HOA fees, and again, it’s better to perform this routine check before buying/renting the property to avoid future issues. The three things you should check are: fees too low, fees too high, and homeowners’ rate of compliance.

Briefly, an HOA fee that’s too low might mean that the HOA isn’t collecting for emergency repairs and maintenance, or other improvements, which means that when these needs arise, you may be asked to pay an additional fee. On the other hand, if the fee is too high, you might not be able to afford it for the long term, which could mean an accumulation of unpaid dues that could result in a dispute, or worse, foreclosure.

And finally, the homeowners’ rate of compliance on payment of HOA dues can immediately tell you whether or not the HOA’s finances are in dire straits. If 15% or more of the homeowners aren’t paying, it could mean that the HOA’s financial standing is in the red.

3. Should I still pay HOA dues even if I have no plans of using the pool and other common areas?

Yes; fees are implemented on every homeowner regardless of whether or not common areas and facilities will be used. As a homeowner, you are expected to pay for the maintenance and upkeep of these common areas.

If you’ve confused homeowners associations (HOA) with property managers or vice-versa, you are not alone. A lot of people think that HOAs and property managers are the same, or at least, their functions are which is why having an HOA and a property manager at the same time is sometimes frowned upon, thinking it’s a waste of time and resources. But there are key differences between the two, and really, what a property manager does is to enable the HOA to properly function and fully serve its community.

To help you better understand the differences between an HOA and a property manager, take a look at each one’s specific functions:

1. The HOA governs the community

In general, an HOA hires the services of a property manager or a property management company. Their function is to assist the HOA in its day-to-day obligations as well as in emergencies. The scope of the work or responsibility that the property manager will handle depends on what both parties have agreed upon. In other words, being the employer, the HOA has full power over the community and its rules of governance as well as the rules and regulations that every member of the HOA must adhere to are all under the jurisdiction of the HOA.

2. The property manager works behind the scenes

A homeowners association is responsible for several things, most notably, maintaining the common areas, ensuring that all members are following rules, collecting dues and taking care of the HOA’s finances, insurance coverage, emergency response, hiring contractors, and vetting tenants where applicable.

The HOA, as a governing entity, does not physically handle all these things especially since its Board of Directors comprises volunteer homeowners who also have demanding day jobs. So who functions behind these functions? The property manager.

3. The property manager may be the HOA’s “first responder” in certain situations

There are certain situations that could be easily handled by the property manager, but again, this depends on what has been agreed upon by both parties. It could be a homeowner’s concern about a job that the contractor the HOA provided, a tenant that has been remiss in payments, etc. In these kinds of situations, the property manager may function as the “face of the HOA,” in that they are first in line for contacting the HOA for concerns. In other words, the “first responder” in certain situations.

For bigger or more serious concerns, the HOA will be notified, and a meeting between the Board of the Directors and the concerned parties may ensue.

In a nutshell, the HOA has the final say in all matters concerning the community it governs.

Whether you’re considering becoming a member of your HOA’s board of directors or you’re simply wondering about eligibility for a seat on the board, it would help to know the qualifications of an HOA Board member. Specific qualifications may vary from one homeowners association to the next, but in general, these are some of the most common basic qualifications:

1. Educational background

Some homeowners associations require board members to have at least a high school diploma or equivalent and there are others that require at an associate’s or bachelor’s degree. It all depends on the HOA’s bylaws and the state’s requirements (if applicable).

Board members and officers are also required to take continuing education courses related or relevant to HOAs. These courses are generally free. There might be online courses available as well, so HOA board members can comply with the requirement despite their busy schedule.

2. Knowledge in accounting and finance

HOAs collect fees from homeowners, create a budget, and basically ensure that the collected fees are being used according to HOA regulations. As such, it’s important that each member of the board has at least a basic knowledge of accounting and finance to ensure that the HOA’s financial obligations are well-taken care of and that the money is not being squandered.

3. Good communication skills

As a member or officer of the board, it is your responsibility to ensure that your homeowners are aware of everything that goes on within the HOA and the community and that they know they can always turn to you for issues regarding the community. To make you effective in both, you need excellent communication skills. Your communication skills will also serve the HOA well as you effectively negotiate with contractors and suppliers, vet tenants, address complaints or even mediate between neighbors in disagreement over an issue.

Apart from these three, basic knowledge of computers and office applications is also required. You need computer skills to help you with documents and written communications, bookkeeping and accounting, and virtual communication applications. You also need to know how to manage the HOA’s website.

If you wish to learn more about homeowners’ associations or for professional HOA management services, we invite you to give us a call at 951-270-3700 for questions or inquiries. If you would like to request for an HOA management proposal, please click here. We look forward to helping your HOA achieve its goals.

If you’ve recently moved into an HOA-managed community and you’ve never had the experience of living in such a community before this, you probably have a lot of questions regarding the HOA and its board of directors. To help you stay informed, here are a few things you need to know about your HOA board:

1. Members of the board of directors are elected by the homeowners

When a seat becomes vacant, any member of the HOA may express their desire to fill the vacancy, and if they qualify, the homeowners will decide who gets the seat by popular vote. There may also be times when a board member taps a homeowner for the vacancy. But an election is still required, even if the Board recruited them.

2. Members of the board can be removed

If a board member can be removed if he or she is suspected of neglecting their fiduciary duties or have been abusing power (or found ‘guilty’ of anomalous/deceitful activities), but it will be a tedious process. First off, you need to know your HOA’s bylaws regarding the removal of board officers. Secondly, you will need enough evidence to support your request for automatic removal.

Usually, the actions taken by the board and homeowners regarding problematic officers is to let them finish their term and elect someone else for the vacancy. Sometimes, the board might elect to remove the officer from their position (president, treasurer, etc.) but not of the board. This significantly reduces their authority over HOA matters.

3. Board of Directors salary

Homeowners associations are not-for-profit organizations, and as such, working for it as a member or officer of the board of directors is voluntary. This means the board of directors shouldn’t receive a salary. There are, however, some HOAs that give their board of directors an allowance or compensation for their “volunteer work,” which completely negates the “volunteer” part of the job. Check your HOA’s bylaws about salaries or compensation (or other ‘financial assistance’) credited to the board of directors regularly.

If you wish to learn more about homeowners’ associations or for professional HOA management services, we invite you to give us a call at 951-270-3700 for questions or inquiries. If your HOA is in or around Southern California and you would like to request for an HOA management proposal, please click here. We look forward to hearing from you.