Although there are many different styles of townhouses, there are some characteristics that they typically share. They can be thought of as a cross between an apartment and a single-family home.
What townhomes have in common with houses:
How a townhouse is like an apartment:
Townhouses in an urban setting are often called rowhouses. Think of New York City brownstones as an example. These homes share walls and are grouped together on city blocks, but they each have their own entrance.
Suburban townhouses are a bit different, and are the type we are focusing on in this article. They are typically planned communities with uniform architecture. Units may be in groupings of two, four, or more units forming a neighborhood-type complex. Each unit has a separate owner, but because the dwellings share a roof, walkways, and lawns, there are Homeowners Associations overseeing the community as a whole.
Similar to a condominium complex, townhouse communities are ruled by a Homeowners Association or HOA. The HOA collects dues from the residents, which go toward paying for upkeep of the exterior of the buildings (painting, new roofs, security gates, etc.), shared spaces (landscaping, snow removal, etc.), and amenities (swimming pool, fitness center, etc.) Owners of the individual units are responsible for maintenance and repair of anything inside the townhouse.
A group of residents are elected to serve on the board of an HOA. These individuals are responsible for making sure that all of the necessary maintenance gets done by hiring the appropriate vendors. They are also tasked with enforcing a Declaration of Covenants, Conditions, and Restrictions (CC&R). The CC&R is a legal document that lays out all of the duties of the HOA and the rules that residents must follow. How strict these rules are is up to the HOA. People might have a great deal of freedom to do what they wish with their home, or they may have specific limitations regarding things like outdoor decorations or size of pets allowed. (This article from the Los Angeles Times lists some extreme cases.)
HOA boards often turn to professional property managers who will not only handle the maintenance function, but that can also deal with the inevitable issues that crop up in collecting dues and enforcing the CC&R.
Many owners of rental properties prefer hiring professional property management companies to tackling landlord duties all by themselves. HOAs face similar challenges and can benefit from management services too, regardless of whether the townhouses are owner-occupied or rented out to tenants.
In fact, a townhouse owner who leases his or her home may want to consider hiring a property management company just as the owner of a single-family house might to deal directly with the tenant, handling maintenance and repairs inside the unit. The service would be contracted and paid for by the townhouse owner. The owner of the home is still responsible for the HOA fees, even if they pass the cost on to the tenant. And if their tenant breaks the CC&R rules, the owner will be held accountable.
Residents elected to an HOA board are volunteers. Many CC&Rs prohibit them from being paid and they still must pay their own HOA dues. Duties can be time consuming for anyone, even if they do not also have a full-time job.
A property management company is paid to make the townhouse community’s needs its top priority. They can dedicate the time necessary to make sure things are done correctly and in a timely manner. The board still must meet periodically and make important decisions, but it is much easier for them with a property manager’s help.
A property management company hired by an HOA is a neutral party. This is helpful, as the resident board members, no matter how well-intentioned, might have conflicts of interest.
For example, a resident who owns a landscaping company might try to influence the board to get the job of taking care of the mowing and planting around the townhouses. Other residents might understandably think this is unfair. But if the property management company is in charge of getting bids on the work, the job will go to whichever company meets the appropriate criteria. That may be the resident’s company or not. The point is, the decision will be fair.
Conflicts of interest may arise regarding the CC&R too. Enforcing rules might be done forcefully, mildly, or not at all, based on the biases or personality conflicts between neighbors who happen to sit on the board. A management company can apply the rules equally and fairly no matter who has violated them.
A property management company can do a lot more than just maintenance and repairs. They are well-versed in the legal rights of renters, and in the case of townhouses, HOA members. HOAs may put them in charge of collecting dues, and collecting delinquent payments. They are also able to work on budgets and produce financial reports for the HOA board.
As with our example of the resident’s landscape company, there may be members of the board who make their living as accountants or lawyers. Employing a management company instead not only eliminates any conflicts, but also provides expertise that is specific to real estate properties.
As part of running an HOA, the board must find reliable, affordable vendors to do maintenance for the townhouse community. Property management companies have staff of their own, as well as a wide network of subcontractors and tradesmen for nearly every need. They will find the best companies for landscaping, pool maintenance, security—whatever is necessary. They often have the ability to broker deals at lower costs than the board would be able to negotiate.
For larger jobs, such as repaving sidewalks or replacing roofs, they can handle the task of gathering bids and vetting the bidders. They can also oversee the project, ensuring it is done on time and on budget.
Like townhouses themselves, property management for townhouses is a combination of apartment landlord duties and HOA obligations. Unlike a landlord, these companies are not on call for a leaky faucet or broken appliance (although they might provide these services and bill the resident). But they do handle every part of the townhouse community outside of the individual dwellings.
Volunteering to serve on the board for an HOA requires making decisions about the townhouse community. One of the most important and best decisions they can make is choosing a capable property management company to take care of the details.
Contact Select Leasing & Management to discuss how we can help your townhouse HOA.
Cover photo by hillaryfox by Canva.com
12851 Manchester Rd., Ste 110
St. Louis, MO, 63131
