Types of Homeowners Associations

Types of Homeowners Associations

There are five types of homeowners association administration styles to take into consideration when running your community association. Running an HOA is much like running a company. The HOA board tackles many jobs and duties to take care of the neighborhood appropriately. For a new area, figuring out where to start can be challenging as well as overwhelming. When you select the type of community management you plan on using, there are many homeowners association management choices to choose from, you should consider the homeowners association software you will be using to manage the business, but first, let’s discuss homeowners associations. 


What is a Homeowners Association?

Homeowners associations are management agreements that typically cover the following type of communities:

  • Single-family homes
  • Condominium buildings
  • Planned communities

You automatically become a member of the neighborhood association when you purchase property or move into the community. The responsibility of your real estate agent is to tell you whether or not your house is part of an HOA. This information is also reflected in your deed.

What Fees Do HOA’s Charge

The majority of HOAs have the right to raise monthly fees to meet annual budgets’ needs. Homeowners associations also have the right to levy any special assessment that the neighborhood needs costly repairs. HOA dues are mandatory and range significantly from just a few hundred dollars to a thousand or more monthly. Most fees paid to the different types of HOA’s go towards paying monthly expenses. But an HOA will also typically put a portion into an emergency savings fund to handle last-minute repairs such as:

  • Fixing a collapsed porch
  • Fixing roof leak
  • Repairing a broken elevator
  • Repairing damage to a stairwell


What Services Do Homeowners Associations Provide

An HOA also helps sets budgets and provides amenities and much-needed services. According to the Community Associations Institute, benefits covered by the different Homeowners Associations vary by community. They may include providing the following services and amenities:

  • Fitness clubs 
  • Pools
  • Street paving 
  • Lighting
  • Landscaping
  • Trash pickup
  • Snowstorm clean-up

Types of Homeowners Associations

Self-Management Association

In a self-managed HOA, the board members are responsible for managing the association. They make sure that all community aspects are operating correctly. There is no assistance from an outside firm or third-party entity.

 Self-management can be a terrific choice for boards who feel that they can handle organizational matters. These consist of carrying out conferences, enforcing offenses, bidding on contracts, intending the spending plan and books, gathering HOA fees, tackling legal problems, and much more.

Nonetheless, the overwhelming amount of board participant responsibilities can be challenging to handle in more prominent areas. Board participants of HOA’s are volunteers from within the community. Board members maintain jobs and lives outside of the association. When being a board member in a self-managed area ends up being a full-time job, it can be hard to fulfill the necessary tasks. That is why several associations want to work with assistance.

 Remote HOA Finance

Sometimes, board members will work with an audit professional to deal with the association’s financing element. The financing responsibility supplies the board members with more time to perform various association services. The third-party expert takes care of finance-specific tasks within the association yet does not manage any other association element. While this can be a viable alternative for some associations, it is often not feasible or insufficient in the long-term.

Remote Management

 A significantly preferred option for many homeowners associations is employing a remote HOA management business. They will handle many of the administrative obligations of an organization instead of merely one or all responsibilities.

 The remote HOA management business does the following activities:

  • Manage monetary administration
  • Collection services
  • Association interactions
  • Insurance policy arrangements
  • Assessing as well as bidding on contracts
  • Tracking maintenance demands
  • Reviewing risk administration

Remote HOA management will provide many full-service firms a lot of advantages without costing as much.

Remote HOA management often tends to be a popular choice among areas since it considerably relieves the complete workload without making the board members out-of-date. It supplies an equilibrium of power and duty without totally breaking the annual budget plan. However, for board members who desire a firm to handle most organization functions, they can work with a full-service management company.


A consultant can be an option for organizations that desire help on a project-to-project basis. Simply put, they get service when they require it. The consultant will certainly be available and assist the organization and control in ensuring the association can continue functioning efficiently.

 While this by-the-need management remedy can be enticing, it can likewise cause even more problems. The majority of board participants, being volunteers themselves, do not understand when to call the specialist, and it’s usually too late. For those who do not want an expert’s flexibility but a full-service HOA management company’s security, a remote monitoring business is an excellent option.

 Full-Service HOA Management

A full-service HOA management business is usually the much more expensive choice out of all HOA administration choices. This is since even more is needed from the monitoring company. A community association can hire a third-party management firm to perform specific tasks such as:

  •  Residential or commercial property management
  • Financial monitoring
    • Budget planning
    • Reserve preparation
  •  Maintenance.

 While a full-service Homeowners association management firm does not remove the requirement for private board members, it will certainly soak up most of their responsibilities. Board members still hold meetings, but the treasurer’s principal duties, as an example, will be taken care of by the full-service administration company.

If You Are Starting an HOA, Consider The Type of Homeowners Association

Make sure you understand precisely the types of services you’ll be getting with an HOA, as well as the fees and rules that apply. As a potential member of that community, you will need to understand the governing rules of whichever association structure you choose. An HOA could make a great deal of sense if you’d like to maintain your new community’s look and servicing, which is what the association is all about. When it comes time to manage your homeowner’s association, take a look at the homeowners association management software provided by Hoastart to help address your homeowner association’s needs. 

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