Guide to HOA Management in Pennsylvania | AHPM

An HOA management company can save communities a lot of stress, money and time. They are not the same as homeowners associations. HOAs are responsible for governing a community, and as such, they handle the following tasks:

• Establishing Covenants, Conditions and Restrictions (CC&Rs)
• Determining penalties for homeowners who do not comply
• Making decisions about the maintenance and appearance of common areas

An HOA board can be self-managed by elected or volunteer homeowners, but communities can also choose to hire HOA management companies. HOA management companies are responsible for:

• Explaining and enforcing Pennsylvania homeowners association laws
• Scheduling meetings
• Managing reserve funds
• Assisting with budget preparation
• Handling the everyday operations
• Communicating with the HOA board
• Enforcing an HOA's policies, rules and bylaws
• Performing the ongoing maintenance needed in the common areas

No two HOA management companies are alike. You will get different services depending on which HOA management company you choose, your community type and your location. Whether your community comprises single-family homes, townhouses or condos, basic services usually include budgeting, resident relations and emergency and regular maintenance and repairs.

Additionally, an HOA management company may also offer occasional services, such as recycling, towing, trash pick-up, snow removal and seasonal pesticide treatment.

What's the Difference Between an HOA and an HOA Management Company?

Since HOAs and HOA management companies handle similar tasks, it can be easy to confuse them. However, while management companies can make rule changes and enforce rules, the HOA board decides the penalties for non-compliance and misconduct.

HOA members often want to avoid dealing with the legal aspects of managing community property. An HOA management company tends to have a deeper insight into the legal framework set out by federal and Pennsylvania state law. Understanding PA HOA laws ensures compliance, appropriate administration and proper community oversight.

What Are Pennsylvania Homeowners Association Laws?

In Pennsylvania, most HOA regulations come from the state's Uniform Planned Community Act, which has been in effect since 1997. While HOAs often have unique documents to handle their own bylaws and conditions, the state's act provides a model for the operation and governance of HOAs to ensure fairness for everyone in the community.

Under state law, HOAs have the power to:

• Care for and regulate shared spaces and amenities
• Collect payments to maintain and operate these areas
• Impose fees for late payments
• Suspend a homeowner's rights to common areas
• Charge reasonable fines
• Foreclose on a delinquent homeowner's property

Pennsylvania HOAs are also responsible for ensuring fairness for all housing unit owners under the federal Americans with Disabilities Act of 1990, the Fair Housing Act and the Pennsylvania Human Relations Act.

Other Pennsylvania state laws that HOAs should be aware of include the Uniform Condominium Act, which provides regulations for communities comprised of condos. Plus, the Pennsylvania Nonprofit Corporation Law regulates HOAs organized as a nonprofit. 

How Do HOA Management Companies Work?

HOA management companies help HOA boards fulfill their duties. With a full-scale management company, an HOA is usually relegated to a decision-making role. The company will maintain properties, collect dues, pay expenses, take calls from owners about issues and enforce the rules and bylaws.



On top of these services, the goal of an HOA management company is to build a sense of community and togetherness. A company will accomplish this by checking in on homeowner relations and involvement and paying attention to the details of the physical community, such as the amenities, parks and landscaping.

HOA management companies help HOA boards fulfill their duties. With a full-scale management company, an HOA is usually relegated to a decision-making role. The company will maintain properties, collect dues, pay expenses, take calls from owners about issues and enforce the rules and bylaws.



On top of these services, the goal of an HOA management company is to build a sense of community and togetherness. A company will accomplish this by checking in on homeowner relations and involvement and paying attention to the details of the physical community, such as the amenities, parks and landscaping.

Another important step in how to find an HOA management company is knowing exactly what it is that these companies do. While every community member is responsible for their property, the HOA is responsible for common areas or corporately-owned property.

Typically, homeowners pay dues as a member of an HOA to improve and maintain common areas, such as:

• Playgrounds
• Clubhouses
• Gyms
• Pools

HOA management companies make sure your community is maintained and well cared for. These companies can also ensure homeowners follow guidelines and regulations and that the community is a safe and comfortable living environment for its members.

Unfortunately for HOA board members, they are also members of the community they serve, which can make it challenging and uncomfortable to ask their neighbors to comply with the rules. An HOA management team can relieve HOA board members of the burden of confronting neighbors about violations. Additionally, an HOA management team can handle the following responsibilities:

• Manage the HOA board
• Handle insurance for the common areas
• Collect dues and manage delinquent dues
• Field questions and concerns from HOA residents
• Maintain common areas, such as playgrounds and parks
• Hire service providers and staff to take care of common areas
• Handle requests for maintenance and repairs of common areas
• Ensure vendors are performing their work to the HOA board's exact specifications
• Manage accounting services, such as reviewing vendor invoices, mailing invoices, bookkeeping and creating monthly reports on expenses and income

Whatever services your HOA needs, the HOA management company you choose should be dedicated to delivering these services efficiently and effectively. At American Heritage Property Management, we provide you with the greatest value for your investment.

Though many use the terms property management and HOA management interchangeably, HOA board members are not the same as property managers. Instead, board members are essentially overseers, and many choose to hire property managers who can better serve their community.

A property management company and an HOA management company have some key differences. Typically, a property management company manages property owned by a private individual or a corporate entity that leases or rents out the property. Property management teams handle the following tasks:

• Responding to tenant requests for property repairs, including urgent repair needs
• Providing maintenance services to ensure the property is well cared for
• Managing corporately owned areas
• Handling screening and leasing

Property management companies represent owners in handling the daily care of an investment. Because property management teams handle the various tasks associated with taking care of a property, they can relieve landlords of the stress of maintaining these properties themselves.

HOA management teams represent the HOA board in caring for a community. Because each property is owned individually, HOA management teams only handle repairs and maintenance for common areas. They can also coordinate and oversee homeowner meetings, enforce the covenants and rules and manage the HOA's finances. 

Property management companies have power inside the properties they oversee but generally do not have much power among the larger community. However, they can still enforce the community rules via the individual properties for which they are responsible. On the other hand, the amount of power an HOA management company has depends on how much power the HOA itself has.

HOA management companies can work with property management companies to ensure the best for the community. A successful HOA management company makes life easier for everyone. Fortunately, at American Heritage, we offer both property management services and HOA management services.

How HOA management companies are regulated varies by region. Rather than regulate the management companies that HOAs hire, most HOA laws regulate the HOAs themselves.

The primary regulator of an HOA management company is the homeowners association board. Since these companies usually have access to very sensitive data, the HOA is in charge of determining the actions management companies can take.

As mentioned above, in Pennsylvania, most condominiums must adhere to the Uniform Condominium Act and most planned communities must adhere to the Uniform Planned Community Act. If you violate your region's business regulations, you could face serious consequences, such as heavy fines or even business license revocation.

Managing an HOA can be much simpler when you hire an HOA management company. These companies offer various services that make life much easier for members of the HOA and keep the neighborhood running smoothly.

At American Heritage Property Management, we want to make every HOA member's quality of life top tier. Since we offer both HOA management and property management services, we can ensure satisfaction for your homeowners. Our professional services will allow your community to thrive and grow.

Along with providing services to meet your residents' satisfaction, we also offer services for your HOA, such as accounting and bookkeeping to get expenses under control and better allocate funds.

Who benefits from using an HOA management company? You may want to hire an HOA management company if:

• Your HOA board has limited time.
• Your HOA board doesn't want to hire and manage staff.
  
• Your HOA members want a hands-off approach to management.
• Your HOA isn't very familiar with property management.
  
• Your HOA members don't want to deal with the legal aspects of managing community property.

Just about any HOA can benefit from the services of an HOA management company.

Knowing how to choose an HOA management company that meets your needs is crucial to finding the right company for you. When choosing an HOA management company, follow these tips:

• Get referrals: Ask for referrals from other property owners in the area. They can give recommendations based on the HOA management companies they have worked with. Getting referrals is often the best first step in your search for an HOA management company.
• Interview possible companies: Before choosing an HOA management company, you should learn as much about it as possible. If possible, schedule an appointment to visit the company, during which you can ask your questions. This initial meeting with allow you to get a feel for what the company is like to work with and whether it can fulfill your specific needs.
• Understand the services offered: Ensure you understand the services an HOA management company provides so you know what tasks the company will handle and what tasks you will need to cover.
• Ask about policies: For any HOA management company you are considering, ask about their policies, such as the policies for maintenance, fee collection and regulation enforcement. Confirm the length of time the company has been in the industry, and ask any questions that give you a better understanding of a company and help you feel more comfortable working with the company.
• Research for complaints: Do some research to determine how reliable a company is. The Better Business Bureau is a good place to start. If you see a pattern of complaints, you may want to consider working with a different company. However, be sure not to judge the company based on a single complaint, as this could simply be a disgruntled client who is trying to create problems in retaliation.
• Obtain a quote: You can verify the fee you will be charged to work with a company by asking for a quote. This quote will allow you to determine how much of your HOA fees will go to the HOA management company.
• Speak with other owners: To assess the quality of a company's services, speak with some of its other clients. Pay attention to what they like and any complaints they have. If you only hear about minor annoyances rather than major issues, you may want to work with this company.

Knowing how to choose an HOA management company that meets your needs is essential. At American Heritage, we have been in the business since 1981. We have eight offices and manage 3,100 units at a vacancy rate of just 1.93%. We can provide you with a complimentary quote on our comprehensive services.

Landlords can enjoy significant returns from property ownership. However, to get these returns, you need to manage your property and your tenants' needs successfully. At American Heritage, we are a full-service property management company. We offer the following property management services:

• Field tenant calls
• Screen and select tenants
• Prepare lease agreements
• Handle maintenance and repairs
• Ensure rent is paid on time
• Handle turnover needs like leasing, marketing and evictions

We also offer HOA management services, which include:

• Conducting homeowner meetings
• Coordinating repairs and maintenance
• Enforcing community regulations and rules
• Providing financial and accounting services
• Partnering with builders and developers during start-up projects
• Acting as the liaison between homeowners and builders or developers

For more than 30 years, we have been a trusted provider in the Central Pennsylvania region for property management services. Are you wondering how to hire an HOA management company?

If you are a landlord or an upcoming landlord, contact us at American Heritage Property Management or request a free rental analysis today.