Written by: Luis Teran, Co-founder, CEO, TenantEvaluation
Key Takeaways
- An HOA management contract is a written agreement that defines the manager’s duties, fees, authority limits, and termination terms between a Florida community association board and a management company.
- Core contract sections include parties and date, scope of services, financial management, fees and payment, term and termination, insurance and liability, records ownership, authority limits, and transition and handover.
- Boards should negotiate eight high-risk clauses: fees and hidden charges, spending authority limits, term and termination notice, insurance requirements, indemnification, records ownership, conflicts of interest, and transition obligations.
- Florida law adds requirements such as written contract mandates, HB 1021 professional-standards disclosure, fiduciary duties under FS 468.4334, 20-business-day records return timelines, and competitive bidding thresholds.
- Even well-drafted contracts leave gaps in resident screening compliance, lease documentation and tracking, and application fee collection workflows. TenantEvaluation addresses these gaps through its FCRA-compliant platform at See how TenantEvaluation closes those gaps.
Core Sections In A Florida HOA Management Contract
A complete HOA management agreement typically covers nine core sections, and the sample in the next section follows these exact headings. Use this list as a checklist: if a section is missing, the contract leaves a gap the board will have to fill later.
- Parties And Date – Full legal names of the association and management firm, effective date, and authorized signatories.
- Scope Of Services – An itemized list of every included duty, with frequency and deliverable specified.
- Financial Management – Assessment billing, collections, accounts payable, bank reconciliation, and financial reporting obligations.
- Fees And Payment – Base management fee, all ancillary charges, escalation terms, and payment schedule.
- Term And Termination – Initial term, renewal mechanics, notice windows, and exit rights for both parties.
- Insurance And Liability – Required coverage types, minimum limits, additional-insured requirements, and liability caps.
- Records Ownership – Confirmation that all association records belong to the association, with return timeline and format.
- Authority Limits – Spending thresholds requiring board approval and the manager’s authority to execute vendor agreements.
- Transition And Handover – Post-termination obligations, records transfer, vendor continuity, and final reconciliation.
See how Lease Tracking works once your core contract sections are in place.
Sample HOA Management Contract For Florida Community Associations
Disclaimer: This sample is a starting point for attorney review and is not legal advice. Florida community associations should have qualified association counsel review any management agreement before execution.
COMMUNITY ASSOCIATION MANAGEMENT AGREEMENT
This Agreement is entered into as of [DATE], by and between [FULL LEGAL NAME OF ASSOCIATION], a Florida not-for-profit corporation (“Association”), and [FULL LEGAL NAME OF MANAGEMENT FIRM], a Florida licensed community association management firm (“Manager”).
1. Parties And Date
Association address: [ADDRESS]. Manager’s principal office: [ADDRESS]. Manager’s CAM Firm License No.: [LICENSE NUMBER]. Assigned Community Association Manager: [NAME], License No.: [LICENSE NUMBER].
2. Scope Of Services
Manager shall perform the following services, at the frequencies stated, as the exclusive administrative agent of the Association. Services not listed below are excluded from this Agreement and require a separate written addendum signed by both parties.
- Assessment billing and collection: monthly
- Delinquent-account follow-up through pre-legal demand: as needed
- Accounts payable and vendor payment: monthly
- Bank reconciliation: monthly
- Budget preparation (draft): annually, no later than [DATE] before fiscal year end
- Monthly financial reporting package (balance sheet, income statement, budget-vs.-actual, aged receivables): by the [DAY] of each following month
- Property inspections with written report: [FREQUENCY]
- Maintenance coordination and vendor oversight: as needed
- Covenant enforcement support through written notice stage: as needed
- Board meeting attendance (up to [NUMBER] per year, in person or virtual as agreed): included
- Annual meeting preparation and attendance: included
- Homeowner communication and inquiry response: within [NUMBER] business days
Excluded services (available at additional cost by written addendum): legal referrals and collection litigation, annual audit or tax return preparation, reserve study, capital project management, after-hours emergency calls beyond [NUMBER] per month, resale disclosure document preparation.
3. Financial Management
All association funds shall be held in accounts titled in the Association’s name at [BANK NAME], and Manager shall not commingle them with any other funds. To keep the board informed, Manager shall provide the board with online read-only access to all association bank accounts and may sign checks only up to the spending threshold in Section 8. Manager shall account for all funds in accordance with Florida Statutes § 468.4334.
4. Fees And Payment
Base monthly management fee: $[AMOUNT], due on the [DAY] of each month. Ancillary fees: [LIST EACH FEE, TRIGGER, AND AMOUNT]. Annual fee escalation: not to exceed [PERCENTAGE]% per year, with 60 days’ written notice. No fee not listed in this Agreement may be charged to the Association without a signed written addendum.
5. Term And Termination
Initial term: [START DATE] through [END DATE]. This Agreement shall not auto-renew unless both parties execute a written renewal addendum. Either party may terminate this Agreement without cause upon [60/90] days’ written notice sent by certified mail, return receipt requested, to the notice address above. The Association may terminate for cause (material breach, license suspension, or failure to return records) upon [NUMBER] days’ written notice and a [NUMBER]-day cure period. No early-termination fee or liquidated-damages clause applies to a termination for convenience by the Association.
6. Insurance And Liability
Manager shall maintain, at its own expense: (a) general liability insurance of not less than $[AMOUNT] per occurrence, (b) professional liability (errors and omissions) insurance of not less than $[AMOUNT], (c) workers’ compensation as required by Florida law, and (d) fidelity or crime coverage of not less than $[AMOUNT] covering all employees who handle association funds. Manager shall name the Association as an additional insured on the general liability policy and provide certificates of insurance annually and upon request. Manager’s liability to the Association for any claim arising under this Agreement shall not be limited to less than [12 months of base management fees].
7. Records Ownership
All association records, including financial records, owner ledgers, vendor contracts, architectural files, meeting minutes, and correspondence, are the property of the Association. Upon termination or written request, Manager shall return all records in a usable electronic format within 20 business days, consistent with Florida Statutes § 468.4334(3). No fee may be charged for the return of records the Association already owns.
8. Authority Limits
Manager may authorize expenditures up to $[AMOUNT] per incident without prior board approval. Expenditures above that threshold require written board approval before commitment, except for genuine emergencies, in which case Manager shall notify the board within [NUMBER] hours. Manager may not execute vendor contracts on behalf of the Association above $[AMOUNT] without a board resolution. All vendor contracts shall be titled in the Association’s name.
9. Transition And Handover
Upon notice of termination, Manager shall cooperate fully with the Association and any successor manager. Manager shall transfer all records, passwords, vendor contacts, open work orders, pending bids, and scheduled inspections within the statutory 20-business-day window described in Section 7. Manager shall prepare a final financial reconciliation and close all open transactions within [NUMBER] days of the effective termination date. No transition or records-transfer fee applies.
Governing Law, Notices, And Signatures
This Agreement is governed by the laws of the State of Florida. Notices shall be sent by certified mail, return receipt requested, to the addresses above. This Agreement is consistent with the Association’s Declaration, Bylaws, and applicable Florida law, including Florida Statutes Chapter 718 (condominiums) or Chapter 720 (HOAs), as applicable.
Association: _________________________ Date: _________
Manager: _________________________ Date: _________
That sample shows what a complete agreement looks like. The next section explains how to negotiate the eight clauses that carry the most risk when the manager supplies the first draft.
Clause-By-Clause Board-Protective Guide
The following eight clauses carry the most financial and legal risk in a manager-drafted agreement. For each, the structure is: what the manager wants, what the board should want, and language to ask for.
1. Fees And Hidden Charges
Manager wants a low headline fee with unlimited ancillary charges triggered by routine events. Board should want every fee listed by name, trigger, and dollar amount in the contract itself. Language to ask for: “No fee not listed in Exhibit A may be charged to the Association without a signed written addendum.” Boards should build a total annual cost model, because ancillary charges commonly include resale documents, transfer fees, special assessment administration, extra meeting attendance, and technology portal fees.
2. Spending Authority Limits
Manager wants broad discretion to authorize expenditures without board approval. Board should want a clear dollar threshold, typically $500 to $1,500 per incident, above which board approval is required, with a narrow emergency exception and a prompt notification requirement. Language to ask for: “Manager may not authorize expenditures exceeding $[AMOUNT] per incident without prior written board approval, except in a genuine emergency, in which case Manager shall notify the board within 24 hours.”
3. Term And Termination Notice
Manager wants a long initial term, auto-renewal, and a narrow notice window, sometimes as short as 30 days, before renewal locks in. Board should want no auto-renewal, or a 90-day opt-out window, and termination for convenience on 60 days’ written notice with no early-termination fee. Missing the auto-renewal window by even a week can lock the association in for another full term. Language to ask for: “This Agreement shall not auto-renew. Either party may terminate without cause upon 60 days’ written notice by certified mail.”
4. Insurance And Additional-Insured Status
Manager wants minimum coverage requirements with no obligation to name the association as an additional insured. Board should want general liability, professional liability, workers’ compensation, and fidelity coverage, with the association named as an additional insured on the GL policy and certificates delivered annually. Every material vendor contract should require the vendor to maintain adequate general liability insurance and name the association as an additional insured so the vendor’s policy responds first to vendor-caused losses.
5. Indemnification
Manager wants the association to indemnify the manager broadly, including for the manager’s own negligence. Board should want mutual indemnification, with the manager indemnifying the association for losses caused by the manager’s own negligence or breach. Language to ask for: “Each party shall indemnify and hold harmless the other from claims arising from its own negligence, willful misconduct, or breach of this Agreement.”
6. Records Ownership
Manager wants control over records during the contract and leverage over their return at exit. Board should want explicit confirmation that all records belong to the association, with a 20-business-day return deadline and no transfer fee. Florida statutes do not authorize a management firm to charge the association for records the association already owns under FS 718.111(12) and FS 720.303(5); some contracts attempt to charge $5,000 to $25,000 in transition fees, which boards should refuse.
7. Conflicts Of Interest
Manager wants flexibility to refer affiliated vendors without disclosure. Board should want written disclosure of every affiliated entity and service, and a requirement to solicit multiple bids when an affiliated vendor bids more than $2,500 for non-management services. Florida’s conflict-of-interest rules now apply by statute to managers and management firms, and a non-disclosed conflict-of-interest contract is voidable.
8. Transition And Handover
Manager wants vague transition language with no timeline or format obligation. Board should want a specific list of deliverables, including records, passwords, vendor contacts, open work orders, and pending bids, with a 20-business-day deadline and no transition fee. A weak records-handover clause can force a new board or new manager to rebuild the community’s history from scratch.
Operational Gaps Not Covered By Most HOA Management Agreements
Even a well-drafted management contract leaves three operational areas uncovered. Boards routinely assume these are handled and discover the gaps only when a problem surfaces.
Resident Screening Compliance
HOA management agreements often do not clearly assign FCRA-compliant resident screening to the manager. Background check authorization, adverse action workflows, and permissible-purpose controls may remain with the board or a specialized vendor. An employer or organization that runs third-party background checks without following the FCRA framework, such as providing a clear, stand-alone written disclosure, obtaining written authorization, and following the pre-adverse and adverse action notice process, exposes itself to significant liability, including costly class actions and statutory damages.
Lease Documentation And Lease Tracking
Management contracts, such as the SEC-filed Form of Management Agreement, typically assign the manager responsibility for negotiating, preparing, executing, and acting on all leases and renewals, and for collecting rents. They rarely specify who collects, stores, and tracks the lease agreements themselves at the unit level. The result is the operational reality most Florida CAMs know well. Lease copies go missing or stale, expiration dates live on spreadsheets, and nothing connects an approved application to an active lease.
Application Fee And Deposit Collection Workflows
In SEC-filed property management agreements, application fees are typically included only within the definition of “Gross Collections,” which leaves their collection, custody, and payment-confirmation mechanics largely unspecified. Security deposits are expressly addressed in Section 5.1, which governs their collection, deposit, holding, and disbursement as required by applicable state law. Managers end up chasing payment confirmations through email and phone calls, and fees are tracked in disconnected spreadsheets.
TenantEvaluation is built specifically for community associations and management companies, and FCRA compliance is built into the platform from the start. Its all-in-one platform digitizes application, document collection, background check, and approval processes. Lease Tracking connects resident onboarding, unit data, approvals, and lease documentation into one audit-ready workflow. It delivers real-time lease status visibility (active, pending, expired, or missing), automated lease document collection during onboarding, unit-level tracking, and searchable digital history, replacing spreadsheets and scattered email chains from application to occupancy.
For payment collection, TEpayments by Zinc is a connected payment workflow integrated into the TenantEvaluation platform that allows Associations and Property Management Companies to collect application fees, deposits, and other required resident payments within the onboarding process they already use. Payments go directly from the applicant to the Association’s designated account, and TenantEvaluation never holds the funds.
Close the screening and lease gaps before they create compliance or revenue problems.
Can An HOA Board Write Its Own Management Contract?
A Florida HOA or condo board can draft its own management agreement. Under Florida Statutes Section 718.3025, however, the contract is not valid or enforceable unless it specifies several items: the services, obligations, and responsibilities of the management provider, the reimbursable costs, how often each service is performed, the minimum number of personnel to be employed, and any financial or ownership interests held by the developer or a board member in the contracting party. Under Florida Statutes s. 720.3055, a Florida HOA board is not required to use a manager-supplied contract form. The statute requires only that contracts be in writing and, above the 10% budget threshold, that competitive bids be obtained, and it expressly states nothing requires the association to accept the lowest bid, though contracts for community association manager services are exempt from the competitive-bid provisions.
The practical requirement, strongly recommended by HOA legal experts, is that an association attorney review the final draft of a contract before the board signs it. In practice many associations fail to do so.
Counsel should check five areas in particular:
- Authority Limits – whether the spending thresholds and vendor-contracting authority are consistent with the board’s fiduciary obligations.
- Indemnification – whether the clause is mutual and does not require the association to indemnify the manager for the manager’s own negligence.
- Insurance – whether coverage types, minimum limits, and additional-insured requirements are appropriate for the scope of work.
- Termination – whether the exit rights are symmetrical and whether any liquidated-damages clause would be enforceable under Florida law.
- Consistency With The CC&Rs And Governing Documents – whether the management contract conflicts with the Declaration, Bylaws, or applicable Florida statute.
When a management contract conflicts with the CC&Rs or Florida law, the statute and governing documents generally prevail. Under Florida law, any provision in a declaration, bylaws, or rules that conflicts with Chapter 718 is void and unenforceable regardless of when it was recorded. The same principle applies to management contracts that attempt to narrow statutory rights. For example, a contract clause that attempts to shorten or override statutory records-return timelines may not be enforceable.
Florida-Specific Rules For HOA Management Contracts
Florida imposes a statutory layer on management contracts that no other state replicates in the same form. Boards and CAMs operating under a Florida HOA management contract must account for the following.
Written Contract Requirements
Florida Statutes § 718.3025 makes condominium management contracts unenforceable unless they are in writing and contain scope of services, costs reimbursable by the association, frequency of service, minimum personnel, and disclosure of any developer or board-member financial interest in the contracting party. Services or obligations not stated on the face of the contract are unenforceable. Florida Statutes § 720.3055 requires written contracts for HOA agreements not fully performed within one year.
Professional-Standards Disclosure (HB 1021, 2024)
HB 1021 (2024) requires Florida condominium management contracts to include a statement in 12-point font affirming compliance with Chapter 468 professional standards. If the disclosure is missing, the contract is voidable and the association may terminate by written notice without penalty. Every Florida condo management agreement executed after July 1, 2024 must contain this disclosure verbatim.
Managing-Agent Fiduciary Duties (FS 468.4334)
Florida Statutes § 468.4334 requires a CAM and management firm to act loyally, skillfully, diligently, honestly, and in good faith, with full disclosure to the association, and to account for all association funds. The 2025 reforms made clear that a manager cannot use the defense that the board directed an unlawful act. The excuse that the board told the CAM to do it no longer protects the CAM or the management firm from bad acts.
Records Return (FS 468.4334(3))
A CAM or management firm must return all official records within 20 business days of termination or a written request. Failure triggers a statutory penalty of $1,000 per day for up to 10 business days (a $10,000 cap), beginning on the 21st business day, followed by license suspension.
Fund-Handling And Competitive Bidding
For condominiums, FS 718.3026 requires competitive bids when a contract exceeds 5% of the total annual budget including reserves. For HOAs, FS 720.3055 sets the threshold at 10%. CAM services are exempt from competitive bidding under both statutes, but three written bids on identical specifications remains the professional standard for management company selection.
Conflict-Of-Interest Rules (HB 913, 2025)
HB 913 (2025) added FS 468.4335, requiring a Florida community association to solicit multiple bids from other third-party providers when a CAM, management firm, or their relative bids more than $2,500 to provide non-management goods or services to the same association. Conflict-of-interest contracts that receive two-thirds board approval must be kept in the official records.
Member Vote To Cancel (FS 720.3055(2)(c))
Any HOA member may move to bring a management contract to a vote of the membership. A majority of members present may cancel it, and the association is liable only for the reasonable value of goods and services rendered up to cancellation, not for any termination fee, liquidated damages, or penalty.
HOA Management Contract Red Flags And Quick Review List
The following clauses are the most common signs of a manager-protective contract. Each warrants a written revision request before signing.
- Auto-Renewal With A Long Or Narrow Notice Window – Any clause that renews the contract for a full additional term unless the association gives notice within 60 to 90 days (or less) before expiration. Missing the window by even a week can lock the board in for another year.
- Unlimited Or Undefined Spending Authority – Any clause that allows the manager to authorize expenditures without a stated dollar threshold or board-approval requirement.
- Manager-Owned Or Manager-Controlled Records – Any clause that conditions records return on payment of a transition fee or that does not specify the 20-business-day return deadline required by Florida law.
- Vague Scope Of Services – Any clause that describes services in general terms without specifying deliverables, frequency, or responsible party. If the answer to a scope question is not in the agreement document, it is not in the agreement.
- One-Sided Indemnification – Any clause that requires the association to indemnify the manager for the manager’s own negligence or breach.
- Hidden Or Uncapped Ancillary Fees – Any clause that reserves the right to charge fees not listed in the agreement, or that ties fee escalation to a vague or undefined index.
- Liquidated-Damages Or Early-Termination Penalties – Any clause that imposes a flat fee or remaining-term payout on the association for terminating without cause. Florida courts enforce liquidated-damages clauses only when actual damages were difficult to ascertain at signing and the stated amount is a reasonable forecast, not a penalty.
- Missing HB 1021 Professional-Standards Disclosure – For condominium contracts, the absence of the 12-point-font Chapter 468 compliance statement makes the contract voidable.
Self-Managed Vs. Professional HOA Management Contract
A board that has not yet decided whether to hire a manager faces a different contract question. Florida law does not require a management company at any size, and it treats the decision as an operational choice rather than a statutory one. The board’s fiduciary duty applies regardless of which path is chosen.
In a self-managed community, the board contracts directly with individual vendors, such as accountants, attorneys, landscapers, and pool services, and retains all administrative duties internally. There is no management agreement, but the board still needs written vendor contracts that comply with FS 718.3026 or FS 720.3055 competitive-bidding thresholds.
In a professionally managed community, the management agreement defines the boundary between what the manager handles administratively and what the board retains as a governance function. A financial-only management arrangement narrows the manager’s scope to assessment billing, accounts payable, and financial reporting, while the board retains vendor selection, maintenance coordination, and resident communications. A full-service arrangement bundles financial administration, governance support, maintenance coordination, and compliance, but the board retains decision-making authority in every case.
Regardless of management tier, the operational gaps described above, including resident screening compliance, lease tracking, and payment collection workflows, remain with the board or a specialized platform unless the management contract explicitly assigns them and the manager has the infrastructure to perform them compliantly.
Frequently Asked Questions
Can I Legally Write My Own HOA Management Contract?
Yes. A Florida HOA or condo board can draft its own management agreement and is not required to use a manager-supplied form. The board should have qualified association counsel review the final draft before execution. Counsel should verify that the contract is consistent with the association’s Declaration and Bylaws, complies with Florida Statutes Chapter 718 (condominiums) or Chapter 720 (HOAs), includes the HB 1021 professional-standards disclosure for condominium contracts, and does not contain indemnification, spending authority, or records-return language that conflicts with Florida law. A board-drafted agreement also gives the board a chance to include protective provisions such as no auto-renewal, a 60-day termination-for-convenience right, and a clear spending threshold that manager-drafted forms typically omit.
What Should Be In A Management Agreement?
A complete HOA management agreement should include the full legal names of both parties and the effective date, a detailed scope of services with deliverables and frequency for every included duty, and financial management obligations covering assessment billing, collections, accounts payable, bank reconciliation, and monthly financial reporting. It should also include a fee schedule listing every charge by name, trigger, and amount, term and termination provisions specifying the initial term, renewal mechanics, notice window, and exit rights, and insurance requirements covering general liability, professional liability, workers’ compensation, and fidelity coverage. The agreement should confirm that all association records belong to the association with a return timeline, set a spending authority threshold requiring board approval above a stated dollar amount, and define transition and handover obligations covering records, vendor contacts, open work orders, and final reconciliation. For Florida condominium contracts, the HB 1021 professional-standards disclosure in 12-point font is a statutory requirement.
What Would Not Be Included In A Property Management Agreement?
Standard HOA and condo management agreements typically do not cover FCRA-compliant resident screening, including background check authorization, adverse action workflows, and permissible-purpose controls. They also do not cover lease documentation collection and lease tracking at the unit level, including real-time lease status visibility, automated lease document collection during onboarding, and searchable digital lease history. Application fee and deposit collection workflows, including how fees are collected, who holds them, and how payment status is confirmed, are usually excluded as well. Annual audit or tax return preparation, reserve study preparation, capital project management for major construction or renovation projects, and legal referrals and collection litigation for delinquent assessments are also outside the standard scope. These exclusions are operational gaps that remain with the board or a specialized platform. TenantEvaluation addresses the resident screening, lease tracking, and payment collection gaps specifically for Florida community associations and management companies.
Conclusion And Next Steps
A manager-drafted HOA management contract is typically written to protect the manager. It often includes indemnification provisions that require the association to cover the management company’s expenses when it is sued while carrying out its duties. The board and its legal counsel review those provisions, and indemnification generally does not extend to gross negligence, intentional misconduct, or criminal acts.
The sample and clause-by-clause guide above give Florida boards a board-protective starting point. Use the nine-section sample as a draft, negotiate the eight high-risk clauses before signing, and confirm that the HB 1021 professional-standards disclosure appears in every Florida condominium contract.
Equally important is recognizing what even a strong contract does not cover. Resident screening compliance, lease tracking, and application fee and deposit collection workflows are operational areas that management agreements often leave unclear, and they can create real financial and legal risk if left unaddressed.
TenantEvaluation is built specifically for community associations and management companies, and FCRA compliance is built into the platform from day one. Its Lease Tracking capability connects resident onboarding, unit data, approvals, and lease documentation into one centralized, real-time, audit-ready workflow. TEpayments by Zinc collects application fees and deposits within the onboarding process, with payments going directly to the Association’s designated account, and TenantEvaluation never holds the funds. Its all-in-one platform, including QuickApprove, IDVerify+, and 55+ Communities Verification, gives Florida CAMs and boards infrastructure to address operational gaps in resident onboarding.
Talk to our team about your onboarding workflow and how TenantEvaluation can support the contract you negotiate.
