There are a lot of individuals and groups involved in running a community: Associations. Boards. Board presidents. Property managers. Property management companies. Knowing who plays what role and who works for whom can get a little confusing. Sorting out all the dynamics may require more of a textbook than an article, but today we’re digging into a specific question: who does the property manager actually work for?

Like so many other issues in an HOA, the specific situation in your community is spelled out in the contract. Usually, the property manager technically works for the association, but it’s not really that cut and dry. To get a handle on how things should actually function, it’s important to understand a few things first.

Who is Your Property Manager?

A lot of this comes down to simple semantics. While many boards might use the terms property manager and property management company interchangeably, you need to know who is who. 

Some associations may choose to work with an individual property manager (i.e. a sole proprietor under contract), but they typically use a property management company. That property management company then pairs them with one of their property managers — an individual whose job is to service the relationship. 

In this case, the property manager is not directly employed or hired by the association. They work for the property management company, and the property management company is hired as a vendor for the association. 

When it comes to hiring or firing a property manager who is employed by the contracted property management company, the association (or its board) can’t do it directly. They could sever their contract with the management company, or ask that another individual be assigned as their property manager. But only the management company could actually fire that person.

So if you ever wonder whom the property manager is actually employed by, consider who would have the responsibility of hiring or firing them as an employee. Technically, they probably don’t work for you as a board president or even the association.

Who Selected the Property Manager?

The property management company is typically contracted by the board, on behalf of the association. 

Take a look at your contract. Most likely, it’s an agreement between the association and the management company. The board president may be the one who signed the contract, but he or she did so because the board went through the selection process as a group, and decided to hire that company. 

On the property management side, the contract was probably signed by a representative of the management company — not by the individual property manager the company assigned to your community.

So, while the board selected the property management company, they typically don’t select the individual assigned to manage the property — the property management company does that.

Who Tells the Property Manager What to Do?

The property management company is contracted by the association. But the association — collectively formed by homeowners — doesn’t tell them what to do. While you may get homeowners who feel like the property manager should do their bidding, it’s not really designed to work that way. 

When a repair is needed or homeowners want a project done, they should come to the board president or designated board member to get the ball rolling. The board then goes through its usual process and makes any necessary decisions. Then, the board or board president informs the property manager of what needs to be done and directs their work. 

While the property manager’s role is to take care of the needs of the association, it’s up to the board to decide what duties, projects, or other assignments should be given to the property manager.

As the liaison between the association, the board, and property management, the board president is the first point of contact for the property manager. While you aren’t their boss, your association is their client — meaning it’s in their best interest to keep you happy.

If things go south with the property manager, and you feel the need to go up the chain of command, you’ll usually complain to the management company. The company may address your concerns in different ways, including assigning you a new property manager if it comes to that.

What if Your Property Manager is Employed by the HOA?

In rare cases, the association may actually hire a property manager not as a contracted third party, but as an employee. The hiring (or firing) of the employed property manager would be a board decision, carried out as defined in the bylaws. It would be the board’s responsibility to define the property manager’s responsibilities. Even though they make up the association, individual homeowners should not be the ones giving direction to a hired property manager — that’s up to the board and board president.

A Word About Contracts

While we’re talking about contracts, the terms of termination are worth mentioning here. Most contracts are negotiated and set for a fixed length of time — maybe a year or two. Be sure to work with your association’s attorney to understand the legal requirements for termination or renegotiation when the contract is up. 

Many vendors (not just property management companies) will word their contracts for “evergreen” renewals. This means that the contract automatically renews on a specified date unless the board takes certain steps to give notice of termination. That automatic renewal will often come with a rate hike. 

When negotiating the contract, make sure the renewal or termination process is part of that discussion. Your board may decide to shop around for new property management, and you don’t want to be caught by surprise by an evergreen renewal.

Document the Dynamics

The dynamics between associations, boards, board presidents, and property managers can be complex. Sometimes it’s hard to keep track of who works for whom, and who’s ultimately in charge. 

Just like so many other things, education is key. But that education is only as good as the communication that delivers it. While everything may be laid out in your by-laws, it’s important to make sure homeowners, board members, and property managers actually understand how their relationships should work in practical terms.

Try providing flow charts or other simplified materials to define everyone’s role and clarify whom they should go to for help. Then, make sure everyone knows where to find those resources. Your Vinteum website, communication tools, document storage, and more can help you manage relationships, reduce confusion, and actually get things done. It’s easy to get started.