Tuesday, 2 February 2016

An Introduction to Owners Association Management (HOA) .....

Owners Association Management (OAM) is the control, management and administration of Strata Titled properties (Common Interest Development) or properties that are jointly owned by multiple owners. These properties have common area and facilities that are shared by all owners. A good example of this type of property is the condominium. Each unit in a condominium is owned by individual owners however they have common areas and facilities like lift lobbies, gymnasium and swimming pool that are shared by all owners. The owners in this type of property ultimately form an Owner’s Association (Community Association or Management Corporation , or some other term in other countries). They in turn will elect a few owners to form a “Board” or a Council to manage and administer the common area ,facilities and the financial component of running the estate. The member of the “Board” will then outsource the service to professional Owners Association Management Companies. 

Unlike Facilities Management however, different countries have different terms for Owners Association Management. In some countries it is called Strata Management in some it may be referred to as Community Management, Property Management or Home Owners Association. The reason for this lack of standard recognition across the globe is simply because the OAM industry is pretty much influenced or affected by local factors, like the local law, demographic,society and culture. 

The way a condominium is managed in Miami may not be entirely the same as the way a condominium is managed in Singapore. Similarly the way a condominium is managed India may differ to the way a condominium is managed in Dubai. Despite the differences, there is an increasing demand for professional managers to manage these types of properties. 

In most countries, regulations with regards to the management of jointly owned property takes shape in the 1960s, however it is not until the 1980s that this profession gained importance. 
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