Tuesday, July 23, 2013

What Does a Community Association Manager Actually Do?

Often times, in our industry, the role of the community association manager is misunderstood. Many homeowners that we speak to on a daily basis think that the management company controls the Board of Directors and that we make the decisions that govern their communities. They have expressed the opinion that we hire the vendors and that we enforce the Covenants, Conditions and Restrictions (CC&Rs). Some homeowners are unaware that the Board of Directors are made up of residents in their community, not employees of the management company. So what are we and what the heck do we do?

Here at Steward Property Services, we follow the motto that, "Your Home is Where Our Heart Is." We are not here to tell you how to live. We are here to assist your Board of Directors with making the most informed decisions possible, in order to protect, preserve and enhance your common areas. We serve at the pleasure of your Board of Directors. Your Board is, for most communities, made up of owners within your own neighborhood. Members of the association, just like you. They are unpaid volunteers who have stepped up to help run the association, most with the goal of improving the quality of life within the community and preserving or improving upon property values.

Most residential common interest developments are created because local government is unable to take on the maintenance of some of the components within the project. An association is then created to spread these maintenance responsibilities among the membership.  The developer works closely with the Department of Real Estate (DRE) and the City to create a budget that satisfies their requirements for the project. These "common area" components may be as simple as a shared street or picnic area,  or as complex as in a condominium development where the association owns and maintains the structure itself, the landscaping outside and around the complex, and even the lights, streets and sidewalks. These shared components are called "common area." Many communications from the association will mention this "common area" and it is important to understand which components are your responsibility as an owner, and which are that of the association. Reading your governing documents will assist in this, but better yet, you can usually call your Community Association Manager who probably knows these documents inside and out.

"The Association" is a daunting name for an incorporated community, but due to the financial structure needed to manage and maintain these common area components, the entity that most would call a neighborhood, is legally defined as a corporation (there are variances from this such as an unincorporated association). This entity is your "association" and is run by your Board of Directors, whom the membership elects. The Board of Directors employs a management firm such as, Steward Property Services, to help facilitate the administrative needs that they do not have time for, or that they need additional support and assistance with. A good management firm can also help your Board keep up with all of the changes in legislature that effect common interest developments.

Management companies wear "the black hat" for your Board of Directors. We are the ones who act as a buffer between the membership and the Board, and we are paid to do so. Especially when it comes to handling late payments or enforcing the CC&Rs. A good management company will encourage their clients to communicate as often and as clearly as possible. This may be done through an association newsletter, or email communications, among other methods of communication. It is to your advantage to read anything that comes from your association, the management company, or your Board of Directors.  The obligations to abide by the CC&Rs become every owner's responsibility upon close of escrow. Once your name is recorded on the grant deed, you become bound by the governing documents of the association.

A good management company is always available to help. We are here to answer your questions and to bring your concerns or requests before your Board for approval or comment. We enjoy our interaction with our local communities and want to help you become more knowledgeable about the community you live in. Please use us. If there is one thing we have learned in the 22 years we have been in business, it's that every association is different. We are here to help you find the answers, or to direct you to someone else who can.