Homeowner Associations (HOA’S)

Under the Texas Property Code there are two kinds of property owner associations, namely Condominium Associations and Homeowner Associations. We use the word “association” here for both.

Protea Real Estate has managed both kinds of associations for many years. Protea also manages apartment complexes. There are substantial differences between property management of those and property management of associations.

home owner association - HOAWith rental property management the apartment management company deals with an owner and the owner’s residents. The apartment management company is authorized by the owner to act in all respects on its behalf, directly with its residents, and has the right to terminate a resident’s lease if the resident is in default.

As an example, imagine if resident Smith in an apartment complex plays really loud music into the early hours of the morning and refuses to stop doing this when demanded to do so by property management. Property management can then terminate Smith’s lease and have him evicted.

Now imagine if Smith is a resident in a unit in a homeowner association (HOA) property or a condominium association property. The unit is owned by Jones. Smith plays his really loud music and it keeps his neighbors, who might be owners of those units or tenants of those owners, awake. Property management represents and is agent for the homeowner association (HOA), not Jones, the owner of the unit. Property management can’t terminate Smith’s lease, only his landlord, Jones, can do that. All homeowner associations (HOA’s) have regulations prohibiting Smith from creating this noise nuisance, but Smith refuses to stop playing his music when property management demands that he does so Property management has a more difficult problem on its hands, although it can ultimately use an attorney to evict Smith.

Whereas rental property management involves dealing with one owner, property management of associations often involves dealing with hundreds of owners. Often owners have serious disagreements between themselves and passions run high.

It takes experienced property management and great diplomacy to deal with these sorts of crises. Protea Real Estate’s personnel has dealt with many such crises and always been able to find the best solutions.

A unit in a HOA or condominium association may be its owner’s home, or it could be an asset he has acquired as an investment. In both cases the owner expects excellent property management, and we at Protea Real Estate have always done whatever we can to provide this.