Management Agreement

A management agreement is the formal contract that defines the relationship between the HOA board and a professional community management company. It specifies the manager's scope of work (financial reporting, violation enforcement, vendor oversight, meeting support, owner communication), monthly management fee, term length (usually one or two years), performance standards, and termination provisions. The board retains authority for all governance decisions; the manager implements board directives and handles day-to-day administration. Management agreements should be reviewed by the association's attorney before signing — particularly termination clause language and automatic renewal provisions, which can lock the HOA into unwanted contracts.

The management agreement defines what the community is paying for and what recourse it has if the manager underperforms. A strong agreement with clear performance standards and termination rights protects the community's interests.