# Community Association Management Firm Duties Explained

> Learn what community association management firms are responsible for. TenantEvaluation helps boards verify performance and prevent HOA mismanagement.

**Published:** 2026-09-11 | **Updated:** 2026-11-06 | **Author:** tenantsync
**URL:** https://blog.tenantevaluation.ai/duties-community-association-management-firms/
**Type:** post

**Categories:** Community association management

![Community Association Management Firm Duties Explained](https://blog.tenantevaluation.ai/wp-content/uploads/sites/31/2026/09/1789040543290-531eb5d938a8-1024x572.webp)

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## Content

*Written by: Luis Teran, Co-founder, CEO, TenantEvaluation | Last updated: October 29, 2026*

## Key Takeaways

- Community association management firms act as agents for the board and handle financial management, maintenance, administration, rule enforcement, and board support.
- Boards keep exclusive authority over budgets, assessments, fines, policy changes, and hiring or terminating the management firm under Florida Statutes Chapters 718 and 720.
- Reserve studies, legal collections, audits, and major capital projects usually sit outside the base management contract and rely on third-party specialists.
- Boards can verify firm performance by requesting monthly financial packages, timestamped work-order logs, inspection records, violation files, and board packets delivered before meetings.
- TenantEvaluation provides FCRA-compliant screening, lease tracking, and payment tools that make administrative, rule-enforcement, and fee-collection work verifiable and audit-ready for Florida associations.

[See How TenantEvaluation Supports Florida Boards](https://www.tenantevaluation.ai/lease-tracking?ref=86903eaa-6a2f-42df-9f21-93bb6806ffa8&utm_term=duties-community-association-management-firms&utm_campaign=ai_growth_agent)

## The Five Core Duty Areas Of Community Association Management Firms

### Financial Management Duties

Financial management drives the health of the association’s budget and reserves. Firms typically collect assessments and dues, pay vendors and invoices, prepare monthly financial statements, support annual budget preparation, coordinate audits and tax filings, and manage delinquency and lien processes. [Florida management contracts in Broward County commonly bundle all of these into the base fee](https://mosaichoa.com/blog/broward-hoa-management-companies), though delinquency follow-up and lien coordination are sometimes billed separately.

**What Good Looks Like:** A complete monthly financial package arrives within the first two weeks of the following month. The package includes reconciled bank statements, reserve balances, and a written variance explanation prepared before the board meeting.

**Evidence The Board Can Request:** Monthly financial packages with reserve balances, bank reconciliations, and an accounts payable ledger that lists each vendor payment and approval.

### Maintenance And Operations Duties

Maintenance and operations keep the property safe, functional, and presentable. Firms coordinate routine and emergency repairs, solicit bids from contractors, schedule property inspections, track work orders, and supervise vendor performance once a contract is in place. [Per CAI guidance, a manager enforces contractor contract terms and checks deliverables, while personnel discipline and supervision of the contractor’s employees stay with the contractor](https://2ndstreetpropertymanagement.com/post/hoa-management-responsibilities). Capital project management appears separately below.

**What Good Looks Like:** A written inspection schedule with documented findings and a work-order system that timestamps every request, assignment, and close-out.

**Evidence The Board Can Request:** Inspection logs and timestamped work-order records that show open, in-progress, and completed items by date.

### Administration And Communication Duties

Administrative work keeps the association compliant and organized. Firms schedule board and annual meetings, record and distribute minutes, maintain official records, process architectural review requests, send owner communications, and coordinate resident screening and onboarding. [Florida Statutes § 718.3025(3) makes any service not stated on the face of a condominium management contract unenforceable](https://hamiltonmikes.com/board-resources/management-agreement-review), so the written scope should list every administrative task the board expects. For HOAs, [Chapter 720 requires records to be made available within 10 business days of a written request](https://hamiltonmikes.com/legislative-updates/official-records).

**What Good Looks Like:** Meeting minutes go out within a defined window after each meeting. Every screening application and architectural approval decision has a clear audit trail.

**Evidence The Board Can Request:** Timestamped meeting minutes and a screening or approval audit trail that shows each application, decision, and communication in order.

### Rule Enforcement And Compliance Duties

Rule enforcement protects community standards and reduces legal risk. Firms document violations, issue notice sequences, and support hearing preparation. [Florida HOA boards must document all enforcement actions, including the notice provided, the member’s response, and the board’s decision, to show consistent and fair action](https://fornarolegal.com/hoa-regulatory-compliance-florida-guide). Under Florida Statutes Chapter 720, §720.305(2)(b), an HOA board may impose a fine or suspension only after providing at least 14 days of written notice of the parcel owner’s right to a hearing before a committee. Florida appellate courts have reversed fines imposed without such notice. The firm executes the notice sequence, and the board decides the outcome.

**What Good Looks Like:** Each open matter has a violation file that shows the initial notice, any response, follow-up notices, and the board’s documented decision, with a complete sequence.

**Evidence The Board Can Request:** Violation documentation files that list each notice in order, with dates, delivery method, and recorded board action.

### Board Support And Guidance Duties

Board support helps directors govern effectively and stay organized. Firms prepare meeting agendas and board packets, facilitate meetings, provide policy guidance, and maintain a vendor performance record. [Condominium Associates notes that competitive-bidding, conflict-disclosure, owner-approval, reserve, and procurement requirements remain governance matters for the board, and delegating operational administration to a manager does not remove the board’s oversight responsibility](https://condominiumassociates.com/newsletter/the-boards-guide-to-contracting-procurement).

**What Good Looks Like:** Board packets arrive at least 72 hours before each meeting, and a written vendor performance record is updated after each contract review cycle.

**Evidence The Board Can Request:** Board packets delivered on a set calendar and a written vendor performance record that shows inspection results, contract compliance, and documented deficiencies.

[Schedule A Demo Today](https://www.tenantevaluation.ai/lease-tracking?ref=86903eaa-6a2f-42df-9f21-93bb6806ffa8&utm_term=duties-community-association-management-firms&utm_campaign=ai_growth_agent)

## Board And Management Firm Boundaries Under Florida Law

Management firms advise and execute, and the board decides. This structure follows [Florida Statutes Chapters 718 and 720](https://www2.myfloridalicense.com/lsc/documents/CondominiumGovernanceForm.pdf), which state that the association’s board of administration is responsible for the association’s affairs, and officers and directors owe fiduciary duties to the members. The board may hire a property management firm and still retains primary responsibility for management. Chapter 720 does not apply to associations regulated under Chapter 718.

The following decisions belong exclusively to the board:

- Adopting the annual budget
- Setting regular and special assessments
- Approving special assessments
- Deciding fines and enforcement outcomes after a hearing
- Setting community policy and amending governing documents
- Hiring and terminating the management firm itself

[Florida law places fiduciary and decision-making responsibility with the board](https://maymgt.com/florida-hoa-and-condo-management-company-boards-guide), and [the Florida DBPR licenses Community Association Managers](https://hamiltonmikes.com/board-resources/management-agreement-review) as professionals who execute board direction. A manager who waives a violation, settles a claim, or signs a contract without board authorization acts outside the scope of the management agreement. [Hamilton Mikes, P.A. recommends that management agreements state that the manager may not, without a board vote, hire or fire association employees, waive violations, settle claims, engage counsel, or sign in the association’s name](https://hamiltonmikes.com/board-resources/management-agreement-review).

For more on individual CAM licensing obligations, see [Community Association Manager: License, Duties & Compliance](https://blog.tenantevaluation.ai/legal-requirements-community-association-managers/?utm_term=duties-community-association-management-firms&utm_campaign=ai_growth_agent).

## Duties Often Excluded From Management Contracts

Several functions that boards assume are covered often sit outside the base management fee or fall to third parties. [MAY Management Services lists property liens, delinquency collections, and foreclosure directives among its financial management services, while legal collection and enforcement are handled by the association’s attorney](https://maymgt.com/florida-hoa-and-condo-management-company-boards-guide). Other functions commonly fall outside the base scope:

- **Reserve Studies And SIRS:** A credentialed reserve specialist prepares these reports, and the management firm coordinates the engagement and executes the funding plan.
- **Independent Audits And CPA Reviews:** The association’s CPA performs the audit or review. The firm prepares the books and supplies records, and the accountant’s opinion belongs to the CPA.
- **Legal Collection And Foreclosure:** Association counsel handles legal collection and foreclosure. The firm surfaces delinquencies and follows the attorney’s direction.
- **Major Capital Project Management:** Project oversight often appears as a separate fee and usually does not sit in the base management rate.
- **On-Site Staffing:** On-site staff may be employees of the management company or of the association, and each model carries different cost and liability consequences.
- **Specialized Compliance Work:** Milestone inspections, structural engineering assessments, and insurance appraisals are specialist functions that the firm coordinates and outside professionals perform.

[Hamilton Mikes, P.A. encourages boards to read the scope exhibit line by line and ask which duties are included, which are add-ons, and which sit with the board or association counsel](https://hamiltonmikes.com/board-resources/management-agreement-review). For a deeper look at contract terms and negotiation, see [HOA Management Contract Terms: A Florida Board’s Guide](https://blog.tenantevaluation.ai/community-association-management-contract-terms/?utm_term=duties-community-association-management-firms&utm_campaign=ai_growth_agent).

## How Boards Hold Community Association Management Firms Accountable

Accountability comes from a regular review rhythm that matches the contract scope. [Florida HOA boards should follow a compliance cadence that includes monthly review of financial statements and bank reconciliations, quarterly review of reserve funding adequacy and vendor insurance, and annual audit completion, budget adoption, and insurance review](https://fornarolegal.com/hoa-regulatory-compliance-florida-guide). Boards can apply the same structure to management firm oversight:

- **Monthly:** Review the full financial package, including reconciled statements, reserve balances, the delinquency ledger, and accounts payable. Confirm on-time delivery and written variance explanations.
- **Quarterly:** Compare firm performance to the contract scope. Pull inspection logs, work-order records, and violation files. Confirm vendor insurance certificates remain current.
- **Annually:** Review the management contract and fee schedule. Confirm the assigned CAM’s license is active with the [Florida DBPR](https://myfloridalicense.com). Decide whether the scope still matches the association’s needs.
- **Escalation Path:** Document a written escalation path from the assigned manager to a regional director to the board, and use it in writing rather than by phone.
- **Standing Agenda Item:** Add a management firm reporting item to every board meeting agenda with a written summary instead of a verbal-only update.

[Boards should require written service-level standards for work orders and homeowner inquiries and request evidence such as monthly financial reports, bank reconciliations, work-order logs with timestamps, inspection records, vendor documentation, and violation and compliance logs](https://2ndstreetpropertymanagement.com/post/hoa-management-responsibilities). Written communication creates the record, and phone calls do not.

[Schedule A Demo Today](https://www.tenantevaluation.ai/lease-tracking?ref=86903eaa-6a2f-42df-9f21-93bb6806ffa8&utm_term=duties-community-association-management-firms&utm_campaign=ai_growth_agent)

## How TenantEvaluation Makes Management Firm Duties Verifiable

TenantEvaluation gives community associations and management companies a shared, auditable system for screening, onboarding, lease tracking, and payments. The platform is built for FCRA compliance from the ground up and supports, rather than replaces, the management firm. It provides the operational backbone for administration, rule-enforcement documentation, and fee collection so boards can verify work and pass audits with confidence.

TenantEvaluation serves more than 5,000 communities and processes about 100,000 applications per year. It is a direct reseller of TransUnion and Equifax data and includes built-in audit trails for every application, automated adverse action workflows, and a dedicated Board of Directors review and voting dashboard.

[QuickApprove](https://www.tenantevaluation.ai/quickapprove?utm_term=duties-community-association-management-firms&utm_campaign=ai_growth_agent) offers an accelerated approval workflow with real-time application tracking, a board-ready approval process, automated communication support, customized approval letters, and a personalized welcome package that preserves control, compliance, and visibility.

![QuickApprove: Fast, Informed Decisions at the Click of a Button](https://cdn.aigrowthmarketer.co/1762954095935-0907220e593d.png)**QuickApprove: Fast, Informed Decisions at the Click of a Button**

[IDVerify+](https://www.tenantevaluation.ai/idverify?utm_term=duties-community-association-management-firms&utm_campaign=ai_growth_agent) adds biometric identity verification with government ID validation, AI-powered liveness detection, and selfie-to-ID matching in the same workflow. Communities move from document-based review to verified physical identity confirmation.

![Ensure seamless and secure identity verification with our advanced AI technology. Whether you're a property manager or part of a board, streamline your verification processes effortlessly.](https://cdn.aigrowthmarketer.co/1762954360819-c0dc4bb77f83.png)**ID Verify**

Lease Tracking gives CAMs, boards, and community operations teams centralized, real-time lease visibility from application to occupancy. Audit-ready digital lease records connect onboarding, unit data, approvals, and lease documentation in one searchable workflow and replace spreadsheets and scattered email chains.

TEpayments by Zinc adds a connected payment workflow inside TenantEvaluation that collects application fees and deposits during resident onboarding. Payments go directly to the Association’s designated account, and TenantEvaluation never holds the funds.

For more on what individual CAMs do within this framework, see [Condo Association Manager Duties: What Florida CAMs Do](https://blog.tenantevaluation.ai/condo-association-manager-duties/?utm_term=duties-community-association-management-firms&utm_campaign=ai_growth_agent). For fee context, see [Community Association Management Fees Explained](https://blog.tenantevaluation.ai/community-association-management-fees/?utm_term=duties-community-association-management-firms&utm_campaign=ai_growth_agent).

## Red Flags Of HOA Mismanagement In A Management Firm Relationship

Specific patterns in reports, communication, and records can signal mismanagement and justify a closer look. [Community ACE founder Leslie Alvarez, CMCA, AMS, LSM, PCAM, notes that warning signs of management company failure rarely resolve on their own and usually compound over time](https://communityace.com/signs-you-need-new-hoa-management-company-florida).

- Missing or consistently late monthly financial reports
- Reserve balances that no one on the board can explain or verify
- Violations issued without a documented notice sequence
- Slow or silent owner communication with no written record
- Screening decisions with no audit trail
- Fees collected with no traceable payment record
- Manager turnover with no written handoff documentation
- [Frequent manager turnover or a management firm that also owns or controls vendors doing significant work for the association](https://condosignal.com/florida/governance-risk)

## Frequently Asked Questions

### What Are The Main Duties Of Community Association Management Firms?

Community association management firms focus on five main duty areas. These areas are financial management, maintenance and operations, administration and communication, rule enforcement and compliance, and board support. Firms execute work under board direction and do not hold governing authority.

### What Can A Management Firm Not Do Without Board Approval?

A management firm cannot adopt the budget, set or approve assessments, decide fines or enforcement outcomes, change community policy, hire or fire association employees, settle legal claims, or sign contracts in the association’s name. These decisions belong exclusively to the elected board under Florida Statutes Chapters 718 and 720.

### Are Reserve Studies And Legal Collection Included In A Management Contract?

Reserve studies usually come from credentialed reserve specialists, and legal collection typically comes from association counsel. The management firm coordinates these engagements and supplies records, and the professional opinion and legal authority belong to the specialist or attorney. Both services are commonly billed separately or excluded from the base scope. Boards should read the scope exhibit line by line to confirm what appears in the contract.

### How Does A Board Verify The Firm Is Doing Its Job?

Boards verify performance by requesting specific evidence on a defined schedule. That evidence includes monthly financial packages with reconciliations, timestamped work-order logs, inspection records, violation files that show each notice in sequence, and board packets delivered before each meeting. Written communication and documented records provide reliable verification, and phone updates do not create a trail.

## Conclusion: Firms Execute And Boards Decide

Community association management firms handle day-to-day operations, and the board sets policy, approves budgets, sets assessments, and carries fiduciary responsibility. Every duty in the management contract should have a matching evidence trail, and administrative, rule-enforcement, and fee-collection duties often remain undocumented. TenantEvaluation makes the screening, onboarding, lease, and payment side of those duties audit-ready for Florida community associations and management companies.

[Schedule A Demo Today](https://www.tenantevaluation.ai/lease-tracking?ref=86903eaa-6a2f-42df-9f21-93bb6806ffa8&utm_term=duties-community-association-management-firms&utm_campaign=ai_growth_agent)

## What to Read Next

- [Community Association Board Management: Roles & Rules](https://blog.tenantevaluation.ai/community-association-board-management/)
- [HOA & Community Association Management Best Practices](https://blog.tenantevaluation.ai/best-community-association-management-practices/)
- [Community Association Manager: License, Duties & Compliance](https://blog.tenantevaluation.ai/legal-requirements-community-association-managers/)
- [HOA Management Contract Terms: A Florida Board’s Guide](https://blog.tenantevaluation.ai/community-association-management-contract-terms/)
- [Community Association Management Fees Explained](https://blog.tenantevaluation.ai/community-association-management-fees/)

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## Citations

- [Resident Lifecycle Management Software: Features & Reviews](https://blog.tenantevaluation.ai/resident-lifecycle-software-features-reviews/)
- [Condo Resident Onboarding: A 26-Step Playbook for FL CAMs](https://blog.tenantevaluation.ai/condo-resident-onboarding-process/)
- [Self-Managed HOA Automation Tools: A Task-First Guide](https://blog.tenantevaluation.ai/self-managed-hoa-automation-tools/)
- [ManageCasa HOA Automation Guide for Florida CAMs & Boards](https://blog.tenantevaluation.ai/managecasa-hoa-automation-guide/)
- [Secure HOA Onboarding Platforms & AppFolio Alternatives](https://blog.tenantevaluation.ai/best-appfolio-alternatives-associations/)

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