One of the most common differences between an HOA and a property management firm is that the fees that HOA’s charge their members are much higher than those of a property management firm. A common reason why property managers are cheaper than the fees that the HOA companies charge their members is to get more profit from the entire situation. Property management firms get a percentage of the money that the house is worth at the moment; they don’t always get a flat fee for the whole lot, sometimes they have to pay a monthly fee for handling certain portions of the property, or they may also have to pay a yearly maintenance fee which is a bit more expensive but is much cheaper than paying an HOA.
Another difference between an HOA and Property Management company is that an HOA usually restricts certain kinds of remodeling or building that can be done on the house. This is done in order to prevent the community from becoming out of control because of some of the unethical things that some of the HOA houses might be doing.