Active adult HOA management is essential to ensure a senior community runs smoothly. Professional management is beneficial to the HOA itself and to all of the residents who are a part of it.

What is Active Adult HOA Management?

An active adult homeowners association is a development that primarily caters to residents aged 55 and over. These communities offer a trouble-free way of living for older people. 

On the other hand, active adult HOA management refers to the oversight of HOAs within senior living communities. Although senior residents enjoy independence, social connections, and activities, they are not always interested in management. As such, many active adult communities are managed professionally by an HOA management company.

An HOA management company helps address active adult developments’ and residents’ unique needs. This company ensures the community is properly maintained and remains a desirable place to call home. While preserving property values is a priority, other objectives include enforcing age restrictions and planning activities tailored to the community’s demographics.

Struggles of Managing an Active Adult Community

Like every homeowners association, an active adult HOA is also led by an HOA board. This HOA board is responsible for overseeing operations and maintenance. In many ways, they function as the leaders of the community, elected by their constituents.

Running an active adult community is no easy task, though. These communities face challenges that tend to differ from other neighborhoods.

For one thing, active adult communities have age restrictions. Usually, the requirement for 55+ percent must be met. Upholding this requirement can come as a challenge, but it’s vital in preserving the community’s identity.

Many active adult communities also boast a busy calendar of activities. Board members must plan the calendar of events right down to the nitty-gritty details and ensure a smooth execution. Beyond that, active adult communities must maintain common areas to ensure health and safety, manage funds, communicate with residents, and resolve disputes that arise.

These things, combined with the members’ personal and professional obligations, can quickly become burdensome. Senior board members who lack the time, energy, and resources to dedicate to active adult HOA management are better off hiring professionals.

Benefits of Active Senior Community Management

When done correctly, active adult HOA management poses several benefits for senior homeowners.

1. Upholding Age Restriction

Although rules can vary from one association to another, one of the defining ones for active adult communities is an age restriction. This restriction can range anywhere from 45+ to 62+, though 55+ is arguably the most common. Some associations may not have age restrictions but cater primarily to the lifestyle of active adults.

The Fair Housing Act makes it illegal to practice housing discrimination based on age. However, 55+ are the legal exception. More often than not, the rules of an active adult community will state that at least 80 percent of households have one or more 55+ residents. The policies and procedures of the HOA must also display the intent to operate as a community with age restrictions.

Professional HOA management ensures compliance with federal housing laws while enforcing these restrictions. This preserves the community’s culture and ensures that it continues to meet residents’ expectations.

2. Planning Activities and Social Events

Social interaction is a cornerstone of active adult living. Professional HOA management companies can organize events like fitness classes, book clubs, and holiday parties. These activities help foster connections among senior residents, keeping them engaged and active.

Planning events and activities, though, is much easier said than done. A lot goes into it, such as contacting suppliers and vendors, booking venues, sending out invites, promoting the events, and ensuring everything runs smoothly on the event day. For a 55+ HOA board, this can all quickly become overwhelming.

Professional companies are already well-versed in the art of event management. Having planned countless similar events, everything comes as second nature to them. These companies often have strong connections with vendors, suppliers, and the like. This leverages them in a better position to ask for discounts.

A full calendar also encourages residents to stay mentally and physically healthy. They participate in group activities tailored to their interests and needs.

3. Ensuring Smooth Financial Management

Proper financial management is essential to keep the community running. However, it’s also one of the things that most HOAs find difficult. It takes a certain level of skill and knowledge to pull off successfully.

Professional HOA managers handle everything from budget planning and fee collection to tax preparation and financial reporting. This ensures the association stays financially healthy.

For senior members, proper financial management spells transparency and accountability. They can remain aware of where their dues are going. This gives them peace of mind about their investment in the community.

4. Overseeing Rule Enforcement

Consistency is key when it comes to rule enforcement. A professional HOA management company can help enforce the rules and manage violations while ensuring the association keeps liability at bay. A manager can ensure everyone follows the guidelines, including architectural changes, pets, or parking.

Beyond identifying violations and sending out notices, managers can also help carry out penalties. Typically, this involves levying a monetary fine and/or temporarily suspending member privileges. Professional HOA managers can oversee all this while ensuring the association complies with federal and state laws.

5. Managing Amenities and Common Areas

Active adult communities often feature pools, tennis courts, and clubhouses. Proper HOA management ensures regular maintenance and, if necessary, repairs to these facilities. In doing so, residents are safe to use these amenities.

Senior board members can’t always conduct regular inspections, though. Fortunately, an HOA management company can take over, performing inspections, prompt repairs, and preventive maintenance.

6. Mediating Disputes

Conflicts between neighbors or with the board are normal in any community. However, it’s important not to let these disputes fester or escalate, as they can disrupt the community’s harmony. Managers can act as neutral mediators, helping to resolve disputes professionally and efficiently. This promotes a friendly and respectful environment for everyone in the association.

7. Managing Insurance

Active adult communities require comprehensive insurance coverage for common areas, amenities, and liability. Professional HOA managers can review and manage policies on behalf of the board. They can ensure adequate coverage while keeping costs reasonable.

Their duties don’t stop there, though. When it comes to insurance, professional managers can also assist in filing claims should the need arise. This protects the HOA’s finances and helps the community recover quickly from unexpected events or accidents.

8. Maintaining Communication

Clear communication is critical in any HOA setting. Board members must stay in contact with each other as well as the residents of the community. Without proper communication, it is easy for trust to wither. Soon enough, residents will start asking questions and accusing the board of keeping secrets.

With professional HOA management, communication can be a breeze. Managers often use various methods to keep residents informed, such as newsletters, bulletin boards, and online portals. They also handle the administrative work associated with communication, including sending notices and emails. This helps ensure that residents stay updated about what’s happening in their community.

9. Complying With Laws

Homeowners associations must adhere to federal, state, and local laws — and active adult communities are no exception. Keeping up with ever-changing legislation, though, can come as a challenge to senior board members. It is not always easy to navigate through online updates or understand these laws’ legal jargon.

Managers can help ensure that the association complies with current and changing laws. This reduces the risk of liability or legal issues. More often than not, HOA management companies have lawyers on retainer. These lawyers typically have a lot of experience dealing with HOAs and the various laws that affect them.

10. Assisting the Board

Typically, HOA boards in active adult communities consist of volunteer residents. Due to the nature of these communities, these volunteer residents are usually aged 55 and above. Moreover, these residents prioritize their active adult lifestyles, careers, and families, leaving no room for additional duties.

Professional HOA management provides these board members with administrative support, expert advice, and guidance on the best practices in the industry. Management companies can also take over such communities’ day-to-day operations and management. This leaves the HOA board members with the decision-making power and plans for the future.

A Better Option

Active adult HOA management plays a vital role in ensuring the success of senior living communities. Many board members, though, struggle with self-management and would rather dedicate themselves to other ventures. With an HOA management company, boards can delegate the more tedious tasks to professionals.

Personalized Property Management offers active adult community management services around Southern California. Call us at 760-325-9500 or fill out this form if you have any questions!

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Board members should understand the permitted HOA rental restrictions in California. There are penalties for violating the rental laws set forth by the California Legislature regarding homeowners associations.

Are There HOA Rental Restrictions in California?

In California, some laws limit the extent to which a homeowners association can prohibit or restrict rentals within the community. The goal of these laws is to protect the rights of homeowners while simultaneously keeping HOAs in check.

It is not uncommon for HOAs to have rental restrictions. Homeowners often rent out their units or properties to earn extra income, mainly if they’re located in high-tourist areas. However, many renters within a community can have negative effects.

For one thing, long-term residents feel concerned about the increased security issues of transient renters. Associations also have more difficulty enforcing the rules. Beyond that, HOAs also face higher maintenance costs and administrative expenses because rentals need more supervision.

Can HOA Restrict Rentals in California?

Whether or not an HOA can restrict rentals in California depends on state laws. The California Legislature has enacted legislation limiting the power of HOAs when it comes to rental rules.

Here are the homeowners association rental restrictions California communities must know.

No Broad Rental Prohibitions

According to Civil Code Section 4741, an HOA’s governing documents or amendment can’t prohibit, effectively prohibit, or unreasonably restrict the rental or leasing of a unit or property. This includes accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs).

Individual Room Rentals in Owner-Occupied Units

An HOA can’t prohibit owners from renting out a part of their unit or property, such as an individual room, if the owner occupies the unit or property during the rental period. The other condition is that the rental period is more than 30 days. This is according to Civil Code Section 4739.

Rental Caps Not Below Than 25%

According to Civil Code Section 4741, an HOA can place a cap or limitation on the number of rentals that can exist at any one time within the community to 25% or more. This means that rental caps can’t be lower than 25%. If an HOA has a rental cap below 25%, it must amend its governing documents to increase the cap to at least that percentage. The same applies to an HOA that does not have a rental cap and wishes to enforce one.

Short-Term Rental Prohibitions Allowed

California HOA short-term rental restrictions are quite common. Short-term rentals are defined as rentals for a period of 30 days or less.

Civil Code Section 4741 permits an HOA to enforce a rule prohibiting short-term or transient rentals. This is to protect the property values of an HOA, as short-term rentals tend to have a more significant impact.

New Rules Apply to Future Owners

According to Civil Code Section 4740, an HOA’s rental restrictions apply to all future owners. For instance, if an HOA previously did not have a rental cap and only recently enacted one, that rental cap only applies to future owners after the cap was created.

Complying With California HOA Rental Law

Homeowners associations must comply with the HOA rental restrictions in California. According to Civil Code Section 4741, HOAs must amend their governing documents to eliminate any provisions that contradict California’s laws. The deadline was set for July 1, 2022.

Amending governing documents, though, takes quite a lot of effort. It usually requires approval from the membership since it would involve changing the CC&Rs. In such situations, Civil Code Section 4741 gives HOA boards the power to amend and restate the CC&Rs without seeking approval from the membership. Instead, they can use the same process required to amend operating rules.

This exception only applies to this particular circumstance. Board members should still follow due process, including seeking membership approval for any other amendments to the CC&Rs. This expedited process was provided so board members could comply with the law before the due date.

Keep in mind that noncompliance does come with penalties. If an HOA willfully violates Civil Code Section 4741, it is liable for actual damages. The HOA must pay a civil penalty of $1,000.

Adopting California HOA Rental Restrictions

While it is common for HOAs to have existing rental restrictions, some communities have yet to regulate rentals. An HOA must comply with California laws if it wishes to adopt new rental restrictions. Additionally, the HOA must do so using the amendment process for the CC&Rs. This typically requires a vote of approval from the membership.

New HOA rental restrictions in California become effective when they are recorded. They also only affect future owners. Of course, some regulations may not require a vote from the membership to approve. However, it is on a case-by-case basis, so board members should seek legal advice to make sure.

Disclosure of Restriction

According to Civil Code Section 4525, if an association’s governing documents include restrictions on occupancy, residency, or use of a property based on age, owners must notify prospective buyers of these restrictions as soon as possible before transferring the title.

Coastal Associations

Coastal condominium associations looking to impose stricter limits on short-term rentals must account for California Coastal Commission regulations.

The Mandalay Shores Association implemented a rule requiring rentals to last at least 30 days. However, the Coastal Commission ordered the association to stop enforcing the rule. It argued that it constituted a “development” that altered the density and intensity of coastal area usage, requiring a coastal permit. 

While the trial court ruled that the 30-day minimum did not qualify as a “development,” the court of appeal overturned the decision. According to the decision, regulating or banning short-term rentals is a matter for the city and the Coastal Commission, not a homeowners association (Greenfield v. Mandalay Shores).

Due to this case, coastal associations should consult legal counsel when addressing short-term rental issues.

Rental Restrictions HOA California: Homeowner/Landlord Duties

While HOA rental restrictions in California help protect the rights of homeowners, that doesn’t mean they are not without responsibility. California law also stipulates some obligations that homeowners have toward their HOAs.

Owner-Occupied or Renter-Occupied

According to Civil Code Section 4041, members must give the HOA information concerning their preferred and alternative contact methods. Additionally, each member must also let the HOA know whether their property is owner-occupied or renter-occupied. This informs the HOA which properties are being rented out. Members must do this on an annual basis, too.

Tenant’s Name and Contact Details

Moreover, Civil Code Section 4740 requires owners to provide the HOA with the tenant’s name and contact information before they lease their units or properties.

Signed Lease Agreement for Lease Period Verification

Many homeowners associations don’t allow short-term rentals. The only way for an HOA to confirm whether or not a rental complies with this rule is to examine the lease agreement, which contains the lease period. As such, an HOA can ask for a copy of the signed lease agreement to confirm compliance with a short-term rental restriction.

Landlords and homeowners can redact personal and financial information before submitting the signed lease agreement to the HOA. This protects the tenant’s financial and personal details from third parties.

Lease Addendums

Homeowners associations can adopt lease addendums or supplement lease agreements that allocate rent to the HOA if the landlord or homeowner defaults on their dues. If an owner becomes delinquent, their rental income (or a portion of it) will go to the association to satisfy the debt.

When leasing a unit, both the owner and tenant must sign the association’s lease addendum. The addendum requires the lease to cover the entire unit. Assignments or subleases are strictly prohibited. Additionally, the lease term must be at least 30 days.

Tenants must comply with the association’s governing documents and disciplinary rules. The owner must assign unit rental income to the association if they fall behind on payments. Finally, tenants must pay the owner’s dues if the owner becomes delinquent.

Penalties for Noncompliance With HOA Rental Restrictions in California

Homeowners associations must comply with California’s laws on rental restrictions. On the other hand, homeowners also face potential consequences if they violate their HOA’s rental rules, assuming they are lawful.

An HOA can enforce its rental restrictions in several ways. More often than not, those violating these rules must pay a monetary fine. They may also lose their rental privileges or other such rights. However, it is vital to refer to the HOA’s governing documents to understand what authorities the association has when it comes to enforcement.

When it Comes Down to It

The HOA rental restrictions in California are clear and reasonable. Board members must ensure that their governing documents comply with the rental laws. Meanwhile, homeowners must understand that rental restrictions support HOAs in the long run. They exist to maintain curb appeal, community standards, and property values.

Personalized Property Management offers expert HOA management services around Southern California. Call us at 760-325-9500 or fill out this form for more information!

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Pets are an important part of many people’s lives. Dogs and cats often go beyond being pets to becoming part of the family. Homeowners should know that not all HOAs are pet-friendly. What is the rule on pet restriction in HOA communities? Can an HOA ban pets? 

Pet Restriction in HOA: is it Allowed?

Homeowners around the country might have heard that HOAs can generally restrict homeowners from owning a pet. However, these rules are subject to state laws. In California, HOA governing documents cannot ban pets entirely. HOAs must allow homeowners at least one pet within the community, subject to association rules.

In other words, homeowners associations cannot prevent residents from having at least one pet. The term “pet” in California law refers to any domesticated cat, dog, bird, or aquatic animal held in an aquarium. Pets also include other animals that have been agreed upon by the homeowner and HOA.

Can my HOA Make Me Get Rid of My Dog?

If the HOA’s regulations comply with state law and the governing documents allow it, the board may have the authority to ask homeowners to remove their pets. It usually happens when a homeowner moves into an HOA without knowing its pet restrictions beforehand. 

In addition, biting incidents may compel the board to remove a dangerous pet. The CC&Rs may address biting incidents and outline specific provisions covering their consequences. It also happens when homeowners refuse to comply with the rules, and the board files a civil lawsuit in court to ask for injunctive relief. 

Sometimes, homeowners refuse to comply with the court order to remove their pets. As a result, the judge may ask a sheriff to remove the pet by force. The homeowner will then be held in contempt, leading to monetary penalties or even jail time.

What HOA Pet Policies are Allowed?

While homeowners associations in California cannot ban pets completely, they can enforce reasonable restrictions.

1. Number of Pets

Can HOA enforce a pet limit? Yes, homeowners associations may limit the number of pets an owner can keep. Doing so allows the community to limit noise and ensures the health and safety of the people around the area.

However, HOAs should be wary about retroactively implementing the HOA pet limit. According to California law, new rules on pet limits shall not apply to prevent a homeowner from continuing to keep a pet that previously conformed to the governing documents.

For example, let’s say a homeowner has three pets at home. After a board meeting, the HOA implements a new rule limiting the number of pets to two animals. The HOA may not be allowed to force the homeowner to remove one of the pets for compliance because they were previously allowed to keep more than two.

2. HOA Pet Weight Limit and Size

The HOA may impose reasonable limits on a pet’s size and weight. Larger pets may incite fear in the neighborhood and cause disarray. Plus, they’re more likely to cause property damage. Consider enforcing a maximum weight limit of 30 pounds or so. 

3. Breed Restrictions

Homeowners associations can enforce breed restrictions to create order. Some dog and cat breeds are noisier and rowdier than others, so keeping them away makes sense. Meanwhile, some dog breeds, like rottweilers and pit bulls, are dangerous to humans.

4. Waste Disposal

Non-owners often complain about waste left all around the common areas. It’s understandable because animal waste contamination has dangerous consequences on people’s health. They can be hazardous to humans and lead to disease. 

For this reason, many homeowners associations impose rules requiring residents to clean up after their pets. This means they have to clean up cat and dog waste when pets pee or poop in the common areas. Keep in mind that common areas not only include clubhouses and gyms but also parks, roads, and sidewalks.

5. Leash Restrictions

HOAs may require the residents to keep pets on a leash when going out. Unleashed pets can be dangerous to both the neighbors and the pets themselves. The pets can run into oncoming traffic or run away outside the neighborhood.

Some homeowners might claim that their pets are not at all aggressive. However, even the most tamed pets can be unruly or dangerous when triggered. Plus, it’s essential to enforce the policy fairly to all homeowners. Allowing select pets to go out unleashed could create disputes within the HOA. 

If the homeowners insist, the HOA may designate a dog park where pets can roam freely. It’s a good compromise and an attractive amenity for pet-friendly communities aiming to appeal to potential buyers. 

6. Noise Rules

Loud noises are one of the main reasons why communities impose pet restrictions in HOA neighborhoods. To mitigate noise complaints, HOAs can ask residents to submit reports about excessive barking. HOAs can also create rules requiring homeowners to take their pets inside the home at night to insulate the sound. 

7. Pet Registration

Homeowners associations may require the residents to register their pets as part of community rules. Doing this allows them to keep track of how many pets there are in the neighborhood. It also gives the HOA more information about the pets, including their size, age, breed, habits, and vaccination history. Plus, pet registrations make rule enforcement much easier.

HOAs may ask new homeowners to register their pets straight away. Meanwhile, residents currently residing in the community may submit registration forms before buying or adopting a new pet.

8. Liability Policy

One way to protect the HOA from liability is to create a pet liability policy. The goal is to clearly outline who is liable for the injuries, damages, or disturbances the pets may cause. It will protect the HOA from lawsuits and costly legal fees. 

When are HOA Pet Restrictions Not Allowed?

As reasonable as some pet restrictions are, there are exceptions to imposing pet restrictions.

Service Animals

The Fair Housing Act protects people with disabilities and requires HOAs to provide reasonable accommodations for service animals. According to the U.S. Department of Housing and Urban Development (HUD), service animals are not considered pets. They are assistance animals that perform tasks, do work, assist, and offer therapeutic emotional support to persons with disabilities.

This means that even if an animal exceeds the weight and size limit of the HOA, the board cannot prevent the homeowner from having it. The board must also allow service animals in all parts of the neighborhood — including common areas where they are normally restricted. 

In addition, the HOA cannot refuse certain breeds because of HOA rules. The association board must make an exception to accommodate the service animal. However, the board can ask for official documentation. The document should verify that the animal is a service animal, not just a pet. 

Moreover, HOAs may still hold the homeowner accountable for the animal’s bad behavior. They must take responsibility for and control their service animal’s behavior. Homeowners must also follow other applicable rules like leash restrictions and waste disposal. 

When can an HOA refuse a service animal? The only exception is when the animal threatens the other residents’ health and safety — with no alternative accommodation to remedy the problem. Nonetheless, it’s crucial to consult a legal professional and decide things on a case-by-case basis. 

Grandfather Clause

Homeowners associations may enforce new pet policies for succeeding pets and homeowners. However, the new policies may not apply to existing pets. This means that even if the HOA imposes a 30-pound weight limit, it cannot remove existing pets of a higher weight class.

Of course, there are exceptions to grandfather clauses. Exceptions may no longer apply if the homeowner’s animal passes away or is given to someone else. They may also be void if the property changes ownership. It’s also essential to determine which animals are eligible for grandfather clauses and which are not.

How to Enforce Pet Restriction in HOA

Homeowners associations must enforce HOA pet restrictions consistently. The board cannot play favorites and enforce the rules selectively on some animals but not others. If a homeowner violates one of the rules, the HOA can do the following to ensure compliance: 

1. Send a Notice

The board must send a notice of violation to the homeowner. Doing this gives the homeowner time to cure the violation. Most homeowners break the rules unintentionally, so a simple notification is enough to deter future violations. Notices also work for first-time offenses. 

2. Monetary Penalties

Homeowners associations may levy fines on violating homeowners who do not cure the violation on time. The fine must be proportionate to the violation in question. Moreover, some fines can be levied for each day the violation is not cured. Consult the governing documents and work with an HOA manager to create a reasonable fine schedule.

3. Suspension of Rights & Privileges

HOAs may suspend a homeowner’s rights and privileges if they refuse to comply. The board can remove their right to use amenities such as pools, gyms, and clubhouses until they cure the violation.

4. Legal Action

As a last resort, HOAs may take legal action against violating homeowners. Remember that this is a drastic enforcement measure that should not be taken lightly. Lawsuits are often long, cumbersome, and costly, so HOA boards should tread carefully. Save them for major violations that threaten people’s health and a

Know Your Pet Restrictions

HOAs impose pet restrictions to foster a safe and peaceful living environment. In turn, the HOA’s residents can enjoy better curb appeal and higher property values. Home buyers who are considering living in an HOA should understand the pet restriction in HOA communities before moving in.

Personalized Property Management offers extensive HOA management services to associations across Southern California. Call 760-325-9500 or contact us to learn more!

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It takes a lot to operate a homeowners association. The board must enforce the rules, update policies, conduct meetings, collect fees, and work with various contractors. If the responsibilities are too much for the board members, they often consult an HOA management company for help.

What is an HOA Management Company?

An HOA management company is a professional business that can take over a planned community’s operations. HOA management staff work full-time, allowing them to fully focus on community matters. This helps relieve the board members of their burden as most directors work on a volunteer basis.

Apart from dedicated manpower, management companies are helpful because they have years of experience running planned communities. They are familiar with everything related to HOAs including financial management, legal requirements, and even taxation. Moreover, they have well-established relationships with relevant vendors. HOA management companies can connect communities with reliable contractors to help with maintenance, repairs, and even construction.

When Should You Consult an HOA Management Company?

HOA management consultation is a big step for many planned communities. After all, management companies usually charge high prices for their services. When is the time to bring in an HOA management company? Here are some signs a community needs it.

1. Lack of Board Experience and Expertise

HOA consulting might be a good idea if the board members need help figuring out where to begin when it comes to managing communities. Hiring an HOA management company might be a better alternative to self-management in these cases.

Otherwise, the board might have trouble with upkeep, financial management, and legal compliance with California HOA laws. The latter two can be costly and even lead to liability.

2. Difficulty Enforcing Rules

An HOA’s governing documents dictate what community residents can and cannot do with their property. They also outline the homeowners’ maintenance and assessment obligations. However, just because the rules are written does not mean the homeowners will follow them.

In fact, many communities struggle with enforcing the rules. The board might not have enough time to inspect the entire community for architectural violations. Alternatively, the board may struggle to create fee schedules and policies that ensure consistent and fair enforcement.

If this is the case, it’s best to hire a management company to help. HOA management companies are well-versed in rule enforcement and even know about local laws. They can not only issue violation notices but also advise the board when there are tricky circumstances to navigate.

3. Fee Collection Problems

HOA management companies are experts at collecting fees, tracking down unpaid charges, and doubling down on delinquent accounts. If the HOA board is struggling to keep up with collections, professional help may be warranted. It’s especially important if the collection issues lead to budget shortfalls, fee increases, and constant special assessments.

4. Poor Quality Vendors

Homeowners associations must hire reliable vendors to keep the community in good shape. Otherwise, the members might complain that the HOA board is not doing its job. It could lead to claims of a breach of fiduciary duty and even legal disputes.

One way to get around this is by hiring an HOA management company. Management companies often have a large pool of vendors to contact within the area. They know who is reliable and who is not. Furthermore, since their relationships are well-established, the management company won’t have problems working with the vendor.

5. Board Burnout

Regardless of how skilled the board members are, managing a planned community with just a few people can be taxing. Board member burnout is quite common and can lead to mass resignations.

To avoid this, HOAs should consult an HOA management company to help them with minor tasks. Doing so allows the board to devote more time to major community projects and pressing issues. 

6. Member Dissatisfaction

Self-management is not always in the community’s best interest. While it can save money, it can lead to dissatisfaction if the board does not know what it is doing. For example, the board may hire good vendors but have poor processes for work orders and maintenance requests. 

In addition, members can sometimes be dissatisfied if they suspect the board is not making the best decisions for the neighborhood. Hiring in a management company brings fresh eyes to the community’s concerns and facilitates better accountability. 

7. Disorganized Record Keeping

Homeowners associations must keep many records to keep the community running. Required records include financial statements, receipts of expenditures, homeowner invoices, payments, membership lists, vendor contracts, and meeting minutes. The HOA board must also keep a record of the governing documents and all their amendments. 

When record keeping becomes disorganized, it can lead to tons of issues. The board may need to remember the promises it has made to the homeowners. They may also need help abiding by the terms of vendor contracts or keeping track of insurance policies. In the worst-case scenario, they may lose records and even lose a lot of money.

A management company can help by organizing all of the community’s paper trail and documents. It can also use specialized software and provide an online portal for easy access. 

8. Lack of Volunteers

Self-managed communities rely on volunteers to handle the bulk of their operations. Volunteer committees handle architectural reviews, budget planning, and even maintenance.

However, when a community lacks volunteers, it may be time to consider professional management. HOA management companies have several teams of community managers who can dedicate their time and resources to the community. The community can thrive even with a few volunteer members. 

How an HOA Management Company Helps Communities

Consulting with an HOA management company is usually a good call for communities that can afford it. This is because professional companies can help take over most of the HOA board’s responsibilities. These include the following:

• Agenda creation and meeting minutes recording
• Meeting scheduling, notification, and facilitation
• HOA budgeting, accounting, and financial statement preparation
• Fee collection, account tracking, and delinquency management
• Common area maintenance and vendor management
• Receiving, processing, and managing maintenance requests and work orders
• Board guidance on insurance, legal, and financial matters
• Rule enforcement
• Facilitating member communication
• Dispute resolution

How Much is Professional Management?

HOA management companies have different pricing structures that determine how much a community pays. Generally, though, they often charge a flat fee based on the number of units in the community. On average, the residents should expect to pay $10-$60 per month.

In other cases, HOA management companies charge fees based on a percentage of HOA assessments. For instance, if the fees cost $300 monthly, the management company may take ten percent ($30) from the fees. 

Finally, homeowners associations should expect to pay more if they have more amenities. Management contracts also cost more when there are more units in the HOA. 

What are the Drawbacks of Professional Management?

HOA management companies offer tremendous benefits to communities. However, they are not always fit for everyone. Professional management has its downsides, too. These include the following:

• Cost. HOA management contracts can cost a lot. Homeowners will have to pay higher HOA fees to cover the cost.
• Less Control. HOA board members may have less control over the community’s operations. The HOA management company becomes more involved in daily operations and may make choices without approval from the board.
• Homeowner Issues. HOA management companies may not be as empathetic toward the homeowners as the board members. The company’s decisions may not consider the residents’ feelings or wants as much, leading to disputes.
• Overzealous Enforcement. HOA management companies often implement rule enforcement processes to make things more efficient. However, this efficiency can sometimes lead to overzealous enforcement that drives potential residents away.

Can Self-Management Work?

Many communities choose professional management to boost quality of life and make processes more efficient. But, are there cases wherein self-management can work? Can board members truly do everything themselves?

To put it simply, yes, self-management can work for some communities. However, whether it will work for a community depends on several factors, including:

• Size. Smaller communities can get by with self-management as there are fewer units to inspect and few amenities to manage.
• Budget. Self-management may be better for communities with little room in the budget to hire an HOA management company or HOA manager.
• Desire for Control. HOA board members who want full control over community matters may choose self-management. The board can better implement its vision for the community without third-party involvement. 
• Number of Volunteers. HOAs with plenty of willing volunteers can make self-management work. The HOA can create committees that handle different aspects of community life like vendor management, landscaping, and architectural review. 
• Access to Tools. Communities may be able to get by using just HOA software. Good software will help the board manage meetings, enforce rules, collect fees, and even manage work orders. 

Find a Reliable HOA Management Company Today

Homeowners associations should recognize when it’s time to consult an HOA management company. Make sure to watch out for the tell-tale signs that the board is not enough to sustain the community’s operations. Otherwise, the HOA may face financial issues and struggle to survive.

Personalized Property Management provides top-tier HOA management services to Southern California communities. Call us at 760-325-9500 or leave us a message!

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• Different Types Of HOA Management: Which One Is Best?
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• Know Your HOA Rental Restrictions Before Renting Out Your Home

Condominiums and single-family homes or townhouses have a lot of differences, but it’s not just the vertical and horizontal orientation that is different. These communities also differ in the amount of HOA fees they charge. Condo fees are typically much higher than the average homeowners association fees. Moreover, condos use them for more than just upkeep.

What is a Condominium?

Condo fees differ because condominium complexes work differently than regular subdivisions with single-family homes, townhomes, or duplexes. What is a condominium exactly? Simply put, a condominium is a private residential building with multiple units. Each unit is sold separately to buyers for residential purposes.

Apart from dwelling spaces, condominium owners share common amenities such as gyms, co-working spaces, and swimming pools. The condominium owners pay various contractors and staff to maintain these facilities. Condominiums are a popular choice because they offer a wide range of amenities.

Conversely, unlike other planned communities, condominium owners often share other elements like plumbing, electrical, and HVAC systems.

What is an HOA Community?

Homeowners association communities, unlike condominiums, are developed horizontally. HOA communities consist of several single-family homes on a large plot of land. Like condo associations, HOAs may have shared spaces and amenities like clubhouses, pools, and tennis courts. 

In addition, HOAs often have community rules that govern property use and maintenance obligations. The homeowners must abide by a certain maintenance standard, or they will be penalized. HOAs also have strict rules about where to park their cars, what decorations they can put up, and what architectural changes they can or cannot make.

What are Condo Fees for?

Condominium complexes require a lot of upkeep. Not only do condos have recreational facilities like gyms or pools, but they also have tons of shared spaces. These include condominium hallways, balconies, patios, roof decks, elevators, staircases, and even parks. Condominiums also have shared roofs, pipes, electrical wiring, and HVAC systems. Condo fees are the charges unit owners pay for all of the condo building’s maintenance. 

Additionally, condo fees pay for all of the condo’s operations. Condos could not operate without security, cleaning, and administrative staff. They also require insurance and access to trash disposal, snow removal, and sewage or water services. Moreover, some condos provide shared utilities like internet, heating, and air conditioning. 

Finally, condo associations in California are required to conduct reserve studies to set aside funds for emergencies and major repairs. Condo association boards divide the burden among all the unit owners so everyone contributes to the reserve funds. 

Condo Fees vs HOA Fees: Breaking Down the Differences

What makes condo fees different from HOA fees? Here are the key factors that set them apart.

1. Different Ownership Structure

Condominium owners own their units individually and have joint ownership over the common elements. In contrast to condos, homeowners in an HOA individually own their units, but the one that owns the common areas is the association itself.

While HOA fees help maintain HOA property, condo fees support common property. This difference in ownership explains why condo association fees are different.

2. Higher Fees

The average condo association fee is much higher than that of regular associations because condo owners must pay to repair the entire building in addition to the common areas. On the flip side, homeowners associations only need to pay to maintain shared spaces like roads, sidewalks, and amenities. The homeowners are left to take care of their own homes.

3. Division of Assessments

Homeowners associations divide assessments equally among all homeowners. They all have equal access to the community’s facilities and shared spaces. The only exception is usually when a few homeowners have exclusive access to limited common areas. Meanwhile, condo associations follow a different system to compute assessments.

Condo associations do not always split the costs evenly among all the unit owners. Members with larger units often have larger ownership over the common elements. As a result, they may pay higher condo association fees because they have bigger responsibilities. 

4. Coverage

Condo associations charge fees for various reasons. They typically cover the following:

• Maintenance of common facilities and recreational amenities like lounges, courtyards, and swimming pools
• Landscaping within and around the grounds
• Maintenance of the building’s exterior walls, roads, and roofs
• Provision of services like wastewater management, recycling, and security
• Parking lot maintenance
• Master insurance policy
• Staff salaries
• Reserve fund allotment
• Utilities like heating, air-conditioning, and internet

While homeowners association fees cover similar things, their amenities, and shared spaces are often different. HOA common areas usually include walking trails, parks, clubhouses, and roads. Additionally, while many offer services like trash disposal and snow removal, only some will cover security and utilities.

How Much are the Average Condo Fees in California?

The average condo HOA fees in California range between $300 and $400 monthly. However, some condo associations may charge much higher fees depending on the number of units, amenities, and common elements. The condo’s location and its services also play a role in determining the fee amount.

If a condo is located in an accessible area or with a higher cost of living, they may charge higher condo fees. Similarly, condos with better or more luxurious amenities typically charge more. 

Apart from these, condo fees depend on the association’s financial health. Financially healthy condo associations can afford slightly lower fees if they have other income streams or enough money in the reserves. Meanwhile, condos with poor financial management may suffer from constant fee increases and special assessments. 

What is a Condominium Special Assessment?

Condo associations levy monthly fees to cover the cost of operations. When the money they’ve collected is not enough, the board may charge a condo special assessment.

Special assessments are often used to cover the cost of operations that normal fees could not cover. The board may also levy special assessments if the association needs more reserves to cover repairs from natural disasters or emergency maintenance.

Additionally, some condos charge special assessments to cover the cost of unexpected litigation. For example, one of the unit owners may file a lawsuit against the board for what they think is an unfair violation notice. Legal battles are not only long but also costly. The board may end up levying a special assessment if they do not have enough money to pay legal fees.

What are Condo Fines?

Both homeowners associations and condominium associations have rules about property use and conduct. One main way associations enforce the rules is by levying fines. After all, unit owners are less likely to break the rules if they know they have to pay money for a violation.

Condo fines are the condo equivalent to HOA fines. However, most condo associations have fewer rules regarding property use and architectural improvements. Hence, they may not use fines as often as homeowners associations. Regardless, unit owners can review their governing documents—particularly the CC&Rs and bylaws—to understand how and when the association may levy fines. 

It’s important not to confuse fines with fees. Fines are charges levied only because of violations. Meanwhile, fees are monthly charges everyone has to pay to maintain the condo building. Unit owners must pay both, but they differ in purpose, amount, and frequency. 

Why do Condos Charge Fewer Fines Than HOAs?

Unlike homeowners associations, condominiums have little room for exterior architectural changes. Unit owners rarely redesign their condo exteriors because they only face long hallways. Meanwhile, homeowners can get more creative when decorating or outfitting their homes in a single-family or townhome community.

In addition, homeowners in HOAs have more to maintain. They must mow their lawns and ensure their fence and home exterior paint are in good shape. They may be penalized if they do not maintain these according to the HOA’s standards. On the other hand, condo unit owners have less to maintain in their exterior.

Frequently Asked Questions

Can Condo Fees Increase?

Yes, condo association fees can increase if necessary. California law requires fee increases to be approved by a majority vote if they are above a certain percentage. 

Do Unit Owners Need to Pay the Fees?

Yes, condo owners must pay their association fees. The fees are legally binding upon the unit owners the moment they purchase a unit from a condo association.

Understanding Condo Fees

Many people assume that HOA and condo fees are the same. However, they differ in many ways. Homeowners can expect to pay much more when living in a condo. Due to the shared nature of their infrastructure, condominiums have much more ground to cover and offer more services.

Personalized Property Management provides a wide array of condo management services to condominium associations in Southern California. Call us at 760-325-9500 or leave us a message.

RELATED ARTICLES:

• A Guide To HOA Maintenance Responsibilities
• Here’s What To Expect When You Don’t Pay HOA Fees
• How Does The Board Come Up With An HOA Budget?