Two terms commonly thrown around in real estate are “HOA” and “property management.” While they both involve managing aspects of a property, They often get lumped together like they’re the same thing. They’re not. And if you’re relying on one to do the job of the other, you’re probably going to run into problems.
The truth is, each plays a different role in how your property is managed and maintained. If you’re not totally sure where one ends and the other begins, you’re not alone—and that’s exactly what we’re breaking down here.
The Core Difference: Governance vs. Service
Here’s the simplest way to separate the two: an HOA makes the rules, and a property management company makes things happen for rental property owners.
An HOA is usually made up of homeowners from the community. They’re in charge of setting and enforcing neighborhood rules, overseeing shared spaces like pools or clubhouses, and keeping property values in check from a big-picture perspective. They vote on budgets, manage dues, and issue violations if someone’s yard gets out of control or of the rules.
A property management company, on the other hand, is hired by owners of individual properties (not the neighborhood) to handle the day-to-day. That includes rent collection, tenant communication, maintenance calls, and anything else related to the actual running of the property. One governs the neighborhood, while the other manages your investment.
How HOAs Affect Property Owners
If your property sits in an HOA-managed community, you’re agreeing to follow their rules, whether you live there or not. According to the Colorado Division of Real Estate, approximately 46% of Colorado’s population lives in a common interest community—so, there’s a decent chance your rental property will fall under some form of HOA governance.
Here’s what that means for you as an owner:
- You’ll need to keep the exterior of your property up to their standards. Lawn care, paint color, even trash bins can come under scrutiny.
- HOAs may step in over noise complaints, parking issues, or anything that affects the neighborhood’s appearance or peace.
- Costs include regular dues and fines if something isn’t up to code.
- They don’t deal with your tenants, leases, or repairs inside your property—that’s on you (or your property manager).
HOAs often have powers that can limit rental property owners, such as restricting the number or length of leases, requiring tenant approval and rental registration, capping the percentage of units that can be rented at a time, and restricting short-term or commercial rentals (for the purpose of commercial activity like offices). These powers can create conflicts with rental operations and affect property management flexibility, so it’s crucial for owners to carefully review HOA rules before investing.
What a Property Manager Does
As opposed to an HOA, which manages the entire community, a property management company handles the daily tasks that come with your property. This includes finding and communicating with tenants, collecting rent, scheduling repairs, and making sure the property follows HOA rules. Here’s what a property manager’s to-do list looks like:
- Finds and screens qualified tenants
- Handles leasing, move-ins, and rent collection
- Coordinates repairs, routine maintenance, and emergency issues
- Manages vendors, service contracts, and property inspections
- Provides detailed financial reporting so you can track income and expenses
As you’re probably aware, managing the day-to-day of a rental property is stressful, so a good management team helps keep it profitable through reliable rent collection and reduced tenant turnover.
Why Property Managers Are Better Suited to Deal With HOAs Than Owners
Many property owners will rely on property management companies to deal with HOAs. Here’s why:
- Expertise with HOA Rules and Procedures: Understands HOA governance, communicates effectively with boards, and navigates complex regulations smoothly.
- Consistent, Professional Communication: Maintains timely and clear interactions with HOAs to prevent misunderstandings and conflicts.
- Legal and Financial Insight on HOA Compliance: Knows how to avoid fines, penalties, and legal issues related to HOA enforcement.
- Tenant Education on HOA Rules: Informs tenants about community rules to minimize violations and owner liability.
- Ensures Timely HOA Submissions and Payments: Tracks and meets HOA deadlines for lease approvals, rental registrations, and fees to prevent penalties.
- Conflict Mediation: Skilled at resolving disputes among tenants, owners, and the HOA to maintain positive relationships and community harmony.
Why Work with Black Bear Real Estate and Property Management
We know the local landscape right down to the fine print in HOA bylaws. Our team handles full-service property management while making sure nothing slips through the cracks with your HOA. That means fewer headaches, no surprise violations, and a property that actually performs.
Whether you're renting out a single unit or managing multiple properties, we treat your investment like it’s our own. Ready to make property ownership easier? Let Black Bear take it from here. Reach out today!