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Managing Agent
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 Use of a Managing Agent


A management company is a separate business enterprise that is hired by an association to act as the agent for the association.  As the agent for the homeowners' association, the management company takes their direction specifically from the association's board of directors.


Typical responsibilities of the association's managing agent include such things as collecting assessments, paying association bills, taking board of directors direction for the enforcement of the association's governing documents (i.e. CC&Rs and rules), and employing vendors to perform services on behalf of the association. Other management company duties could include such things as assisting with the creation of a budget, preparing meeting agendas and minutes for the board of directors, or assisting in the resolution of problems. Management companies also typically advise the board of directors on how to comply with the association's governing documents and applicable laws.


Homeowners associations that retain professional management companies are targets for financial abuses by property management companies. To protect against such possible abuses, many states have laws that require prospective managing agents to provide a written statement to the board of directors prior to entering into the management agreement which is designed to provide the association with specified information about the prospective management company.


An association's decision to retain outside, professional management, does not entitle the association to abdicate the responsibility of the board of directors for proper management of the association. Although the board of directors is entitled to delegate management responsibilities, the law still requires that the homeowner association's activities and affairs be managed and all corporate powers be exercised under the ultimate direction of the board of directors.