New England HOA contracts: A complete guide

What is an HOA contract in New England?

An HOA contract is a formal agreement between a homeowners association (HOA) board/trustees and a property management company that defines the scope of services, responsibilities, and terms of their working relationship. In New England, HOA contracts should also account for local laws and regulatory nuances, including state-specific disclosure requirements and governance guidelines for condominium associations. Because New England communities often include diverse property types — from coastal townhomes to urban high-rises — the contract should reflect the community’s unique needs.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members/trustees should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

What do HOA contracts cover?

HOA contracts cover the essential duties that a management company performs on behalf of the board. These services are tailored to each community and typically fall into operations, finances, administration, communication, and compliance categories:

• Operations: May include overseeing vendor relationships, coordinating repairs and maintenance, supervising on-site staff, and facilitating major capital projects.
   
• Finances: Can range from budgeting and reserve planning to collecting assessments and processing payments.
   
• Administration: Often involves preparing board packets, organizing annual meetings, and maintaining community records.
   
• Communication: How often financial statements are delivered, how resident inquiries are handled, and when on-site visits occur.
   
• Compliance: Management companies often help boards meet local, state, and federal requirements by tracking inspection schedules, filing mandatory reports, and coordinating responses to new legislation.

These elements collectively help the board manage risk, meet fiduciary obligations, and improve the resident experience.
 

Why are HOA contracts important?

HOA contracts are important because they protect the interests of the community and provide clarity for both the board and the management partner. A well-drafted contract can help remove ambiguity around who is responsible for what, when, and how.

This clarity can help board members/trustees make informed decisions, delegate confidently, and navigate complex property management responsibilities with support. For management companies, the agreement provides a framework to deliver services consistently and meet performance benchmarks. It also serves as a tool for evaluating results and making necessary adjustments over time.

In New England, where many HOAs manage aging infrastructure, complex amenities, and tight budgets, these contracts can offer critical structure. They may help empower boards to stay ahead of compliance deadlines, emergency planning, and long-term capital planning with confidence.
 

Who prepares the HOA contract?

The HOA contract is typically drafted by the management company and reviewed by the HOA board and its legal counsel.

A property management firm will often start by sharing a standard template that outlines core services, then customize the agreement based on the needs of the individual community. Board members/trustees are encouraged to work with an attorney familiar with New England community association law to review the language, especially clauses related to indemnification, termination, and dispute resolution.
 

How long do HOA contracts last?

Most HOA contracts last between one and three years, though some associations may opt for longer terms when stability and continuity are priorities. These agreements typically include a start date, renewal terms, and termination clauses that protect both parties. Some contracts automatically renew unless canceled within a specific window, usually 30 to 90 days before expiration.

Termination provisions may include "termination for cause," such as non-performance, or "termination for convenience" with advance notice. It’s crucial for boards to understand these terms and align them with the community’s strategic goals.
 

What questions should boards ask before signing?

Before signing an HOA contract, boards should ask clear, direct questions to understand the scope of services, cost structure, and expectations. Here are some important areas to focus on:

• What specific services are included, and which are considered billable extras?
   
• What are the communication expectations for board meetings, financial reports, and emergencies?
   
• How will staff transitions, vacation coverage, or emergencies be handled?
   
• Are there references or case studies from similar communities in the region?
   
• What technology platforms are used for reporting, billing, and resident engagement?

These questions can help prevent misunderstandings and equip board members/trustees with the information they need to make a confident, informed decision.
 

How much are property management fees in New England?

Property management fees for HOAs in New England typically range from $10 to $25 per unit per month, depending on the size, location, and complexity of the community. Larger communities in cities like Boston or Stamford may pay higher fees, while smaller suburban communities may have lower rates but still incur additional costs for services outside of standard management — such as construction oversight, compliance filings, or emergency staffing.

It’s important for boards to review what’s included in the base management fee versus what will be billed separately. A transparent fee structure will outline which services are covered and what constitutes billable extras, such as legal consultations or major project management.

Boards should also ask about how fee increases are handled year over year and whether cost-saving programs (like insurance or energy partnerships) are available to offset rising expenses. Comparing total value, not just base rates, is key when evaluating contracts in the New England market.
 

What happens if there is a dispute?

If a dispute arises between the HOA board and the management company, the contract often outlines how it should be resolved. Common dispute resolution methods include internal meetings, third-party mediation, or binding arbitration.

Well-written HOA contracts typically include a "notice and cure" clause, which allows one party to notify the other of a problem and request resolution within a specific timeframe. This mechanism gives both sides an opportunity to resolve issues before escalating to formal proceedings.
 

Tailoring management services to your community’s needs

A well-structured HOA agreement reflects the specific needs of your board, your building, and your residents. At FirstService Residential, we work closely with board members/trustees to understand your goals, pain points, and long-term plans, then shape our services around what matters most to you.

Whether your community is navigating aging infrastructure, balancing complex amenities, or preparing for capital improvements, our team can help design a scope of services that meets your operating needs and adapts as priorities shift. From budgeting and vendor oversight to compliance support and resident communication, we can help bring local expertise to every agreement.

Contact FirstService Residential today to learn more.