Common Misconceptions About the Roles of Management Companies and Licensed Community Association Managers (LCAMs) in Florida

In the world of property management, there is often confusion about the roles and responsibilities of management companies and Licensed Community Association Managers (LCAMs) in Florida. Many people mistakenly equate association management with traditional residential property management, but the two are distinctly different in purpose, scope, and execution. Understanding these differences is crucial for homeowners, board members, and anyone involved in a homeowners’ association (HOA), condominium association, or cooperative.

Misconception #1: LCAMs and Property Managers Are the Same Thing

One of the most common misconceptions is that LCAMs are equivalent to traditional property managers. While both roles involve managing real estate, their responsibilities and focus are quite different.

– Traditional Property Managers typically oversee the rental or leasing of individual units or properties. Their duties include finding tenants, collecting rent, handling maintenance requests, and ensuring that properties remain occupied and profitable.

– Licensed Community Association Managers (LCAMs) manage the operations of community associations, such as HOAs, condominium associations, and cooperatives. They work on behalf of the association’s board of directors to maintain common areas, enforce community rules, manage budgets, and ensure compliance with state laws and governing documents.

In short, traditional property managers serve landlords and property owners, while LCAMs serve entire communities and work closely with association boards.

Misconception #2: Management Companies Are Responsible for Everything

Another widespread misconception is that management companies handle all aspects of running an association. While management companies play a vital role, they act under the direction of the association’s board of directors.

– Management Companies provide administrative, financial, and operational support to the association. They handle tasks like collecting assessments, coordinating maintenance, and preparing financial reports. However, they do not make decisions for the community.

– The Board of Directors is ultimately responsible for making decisions on behalf of the community. The board sets policies, approves budgets, and decides how to handle community issues. The management company implements the board’s decisions.

Residents should understand that while the management company carries out day-to-day tasks, they do so based on the directives of the board.

Misconception #3: LCAMs Are Responsible for Enforcing Rules

Many homeowners believe that LCAMs are responsible for enforcing association rules and regulations, but the reality is more nuanced.

– LCAMs can identify rule violations and notify residents, but they do so on behalf of the board of directors.

– The Board has the authority to enforce rules and impose fines. LCAMs act as the board’s representative and can only take action within the scope of the board’s decisions.

In essence, LCAMs are facilitators who help ensure that the board’s policies are implemented fairly and consistently.

Misconception #4: Management Companies Control the Budget

A common myth is that management companies have full control over the association’s finances and budget.

– The Board of Directors is responsible for creating and approving the community’s annual budget.

– The Management Company assists with financial reporting, collecting assessments, and paying invoices, but it does not have independent authority to allocate funds.

Residents should understand that financial decisions are made by the board, and the management company’s role is to carry out those decisions in a transparent and organized manner.

Misconception #5: LCAMs Work for the Management Company

While LCAMs are often employed by management companies, their primary duty is to serve the association.

– LCAMs have a professional obligation to act in the best interests of the community and uphold Florida statutes governing associations.

– Management Companies provide the resources and support LCAMs need to perform their duties, but LCAMs are ultimately accountable to the association’s board of directors.

This distinction underscores the importance of LCAMs acting as advocates for the community rather than simply following company directives.

Conclusion

Understanding the differences between traditional property management and association management, as well as the roles of LCAMs and management companies, is essential for fostering healthy, well-managed communities. Clear communication between residents, boards, and management professionals can help prevent misconceptions and ensure that everyone’s roles and responsibilities are properly understood.

By dispelling these common myths, associations can create more effective partnerships with their management companies and LCAMs, ultimately leading to more successful and harmonious community living.