Best Practices for Building a Successful Relationship with Your HOA Property Manager

As both a condominium owner and now a Board member of a condominium HOA, I’ve learned how easy it is to blame the Property Manager when something goes wrong. And in any HOA, problems do arise—sometimes often. Unfortunately, when challenges surface, it’s just as easy to overlook all the things that are going well.

So how do we move beyond the “blame game” and create a productive partnership with our Property Manager?

You might assume the answer is “better communication,” since that’s the go-to solution for nearly every type of relationship. And while strong communication is certainly important, the ultimate responsibility rests with the Board.

The Board’s Responsibility

The Board of Directors has a fiduciary duty to act in the best interests of the HOA. While the Board may engage a Property Management company to handle day-to-day operations, it is the Board—not the management company—that is accountable to the homeowners.

This means that the first step in building a successful relationship with your Property Manager is for the Board to fully accept responsibility for both the successes and the failures within the Association. At first, this may seem like an extreme position, but the following example illustrates why this accountability is essential.

A Common Scenario: Bookkeeping and Financial Oversight

In many HOAs, the Property Management company not only oversees operations but also handles bookkeeping. On the surface, this arrangement seems efficient—after all, management is closely involved in the financial activity of the community. Each year, the HOA’s financials are audited, and Board members often assume that the management company supervises the bookkeeper and that the CPA will catch any errors during the audit. Confident in this process, the Board accepts the reports at face value, especially when audits appear standard and raise no red flags.

But here’s where problems arise. Some Board members may have a general understanding of finance, yet very few know how to analyze a General Ledger—the detailed foundation of the financial statements. Over time, discrepancies may appear:

• The reserve balance listed on the Balance Sheet doesn’t match the actual cash in the bank.

• Accounts Receivable reports show unpaid assessments that, in reality, were already collected.

• A bookkeeper may be using practices that deviate from Generally Accepted Accounting Principles (GAAP)—and even the CPA audit doesn’t detect it.

  
  

When these issues surface, the Board often points the finger at Property Management. After all, they’re being paid and are expected to ensure accurate bookkeeping. However, the truth is more complicated:

• Property Management companies do not necessarily specialize in accounting—bookkeeping is often offered as an added service.

• CPA audits are not designed to uncover sloppy bookkeeping; they focus on whether financial statements present a fair overall picture.

• The real concern is weak internal controls, which can leave the Association vulnerable long before an audit reveals inconsistencies.

  
  

By recognizing that financial oversight is ultimately the Board’s responsibility, HOA leaders can avoid misplaced blame and instead establish stronger checks and balances.

Best Practices for a Strong Board–Property Manager Partnership

To create a healthy and effective relationship with your Property Manager, Boards should put the following practices into action:

1. Take Ownership of Oversight

Remember that the Property Manager is a partner, not a substitute for the Board’s fiduciary duties. Whether it’s finances, contracts, or maintenance, the Board should remain actively engaged and ask questions until it is confident in the answers.

2. Invest in Financial Literacy

At least one Board member should have a working knowledge of financial reports, including the General Ledger. If that expertise is lacking, consider professional training or appointing an outside accountant to review the books independently.

3. Strengthen Internal Controls

Do not rely solely on the management company’s systems. Establish clear checks and balances, such as requiring dual signatures for large disbursements, reviewing bank statements directly, and rotating responsibilities among Board members when possible.

4. Clarify Expectations in Writing

Clearly define the scope of the Property Manager’s role in bookkeeping and operations. A well-written management contract can prevent misunderstandings by detailing responsibilities, reporting standards, and limits of authority.

5. Foster Open, Respectful Communication

Yes, communication does matter—but it must be constructive. Treat the Property Manager as a professional partner. Share concerns early, focus on problem-solving rather than blame, and acknowledge what is working well.

6. Engage Independent Audits Strategically

Don’t assume a standard CPA audit will uncover every weakness. Consider periodic, targeted financial reviews that focus specifically on internal controls and bookkeeping practices.

Conclusion

A strong HOA relies on the collaboration between its Board and its Property Manager. But collaboration does not mean shifting accountability. The Board must accept ultimate responsibility for the community’s governance and finances. By embracing oversight, investing in education, and fostering a respectful partnership, Boards can transform their relationship with Property Managers from one of finger-pointing to one of shared success.