Are Condo Associations Required To Hire Management Companies?

Experienced management companies help condo associations optimize their daily operations. A condo association management team handles tasks such as keeping communities updated on legal requirements, maintaining the property, collecting fees, enforcing rules, and managing the budget. Here is more about community management companies and whether condo associations are required to hire them:

Varying Legal Requirements

There aren’t any legal requirements for a condo association to hire an outside management company. Eight states require the managers of community associations to be licensed with the state.Exact licensure requirements vary by state, and you can find these requirements in the state’s statutes on homeowner’s associations. States that don’t require licensing may have other restrictions for community association managers. Some states may allow an unlicensed person to manage a community if someone with a license supervises them. 


Most states allow the condo association to appoint one of the board members as manager or have someone volunteer for the position. In Florida, a manager is required for properties with more than ten units or a budget over $100,000. The board is not required to hire a management company under this statute, but they must appoint someone to act as a liaison between the board and the residents. 

Many boards appoint members who are real estate brokers since the state licenses and recognizes them as professionals. These individuals often know about property management and can act as managers without taking additional courses or being certified. While this approach may work for smaller communities, larger associations often require a full-time manager. Unless one of the board members has the time to devote to the tasks necessary for community management, larger associations must hire an outside person.

Reasons To Hire Outside Condo Association Management

Condo association members should hire someone who has the time and the appropriate skills to manage a large community. Board members may have full-time jobs or other obligations that prevent them from devoting enough time to the association in this role. One solution to this issue is to hire an outside management company. These professionals provide a range of services, such as selecting outside vendors, creating service contracts, inspecting buildings, and updating common areas. Here are more reasons to hire a third-party condo association management team:

Maintenance and Management of Common Areas

Management companies maintain all the common areas within a community. They can bring in their own maintenance crew or contract the work to outside vendors. The manager may conduct regular inspections to keep all common areas in good condition and safe for the residents. They may advise the board when they see the need for improvements, such as new roofing or repainting the walls.

Enforcement of Rules

Communitymanagement companies respond to questions about rules and monitor the community. They send hard-copy and digital warnings or reminders to community members, notifying them of any violations. Some of these rules may include pet policies, parking requirements, and landscaping or exterior design restrictions.

Collection of Fees

The condo association management team is responsible for collecting HOA dues and any other fees. If payment is late, the manager may add late fees or other penalties when they send out collection notices through mail or email. The community fees are used to pay for insurance, upkeep of the property, and other expenses.

Development of Budget

Some property management companies offer to create a budget for the community. Condo management companies often have experienced financial experts on staff. They can develop an annual budget or oversee the management of an approved budget. The finance specialists work with board members to determine costs for specific line items, such as landscaping or lawn care services, for the following year. They may request bids from vendors to find the best value for the service based on the established budget. 

Maintain Compliance 

The condo association is responsible for staying updated on any changes in relevant state statutes. Community management companies monitor these changes and can inform the board when new rules go into effect. The management team works to keep the community in compliance. They also inform the residents of any changes they need to be aware of. These actions help protect the community and the association from legal consequences or fines. 

Consider Hiring a Property Management Company

While condo associations are not required to hire property management companies, these management experts can benefit the daily operation of the communities. Amanagement team can help the association save money and provide for the needs of residents by creating a budget and maintaining common areas. These professionals also offer tips for improving an association’s operational processes, like handling resident fees online and outsourcing maintenance to vendors. Contact a reputable community management company today to learn more about their condo association management services. 

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