What is an HOA management agreement?
An HOA management agreement is the contract between the association and a professional management company or community manager. It spells out what the manager does, what the association pays, and how either side can end the relationship.
It’s one of the most important contracts a board signs. Clear terms on fees, termination, and who controls the association’s bank accounts prevent the most common disputes with managers.
What to include
- Parties and effective date
- Scope of services: financial, administrative, maintenance
- Management fee and any extra-service fees
- Term, renewal, and termination notice
- Handling of association funds and records
- Insurance and fidelity bond requirements
- Reporting to the board
- Return of records when the agreement ends
Template preview
Fill in the [highlighted] fields[This sample is for reference only and is not legal advice. Have an attorney licensed in your state review and adapt it before use.]
The Association appoints Manager as its managing agent for [Community name], and Manager accepts, under the terms below and the Association’s governing documents.
- Financial: billing, collections, accounts payable, monthly financial reports, and budget preparation
- Administrative: owner communication, records, meeting notices, and minutes support
- Maintenance: vendor coordination, bids, inspections, and work orders
- Compliance: violation inspections and notices under Board policy
Monthly management fee of $[amount] ($[amount] per unit), plus fees for additional services listed in Schedule A.
Initial term of [number] months beginning [date], renewing for [period] unless terminated. Either party may terminate without cause on [number] days’ written notice, or for cause as provided in this Agreement.
All funds are held in accounts in the Association’s name. Disbursements above $[amount] require Board approval. Manager will not commingle Association funds with its own.
Manager will maintain general liability, workers’ compensation, and fidelity / crime coverage of at least $[amount], naming the Association as additional insured where applicable.
Manager will provide monthly financial statements by the [day] of each month and attend [number] Board meetings per year.
All books and records belong to the Association and will be returned within [number] days after termination.
Manager may not sign contracts over $[amount] or longer than [term], or begin legal action, without Board approval.
Tips for using this template
Ask for a full schedule of fees for things like resale certificates, mailings, and extra meetings.
Accounts should be in the association’s name, with board approval for large disbursements.
A 30- to 60-day termination without cause protects the association.
Frequently asked questions
What does an HOA management company do?
Typically bookkeeping and collections, vendor management, violation enforcement, meeting support, owner communication, and record keeping, as defined in the agreement.
How much do HOA management companies charge?
Fees vary by region and services, often a flat monthly fee per unit plus charges for extra services. Get proposals from several firms.
Can a self-managed HOA do these tasks with software?
Yes. Many self-managed boards use software for accounting, payments, communications, and violations instead of hiring a manager.