Board of directors vs management: A guide for Rhode Island associations

What is an association board?

In Rhode Island, an association board is a group of elected homeowners who govern a condominium, co-op, or homeowners association (HOA). The board makes high-level decisions, sets policies, and oversees the community’s long-term goals. Their authority comes from the association’s governing documents and state laws, such as the Rhode Island Condominium Act. Board members do not typically handle day-to-day tasks themselves but instead focus on governance and decision-making, often with the support of a professional property management company.

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

Roles of an association board

The roles of the board of directors vs the management company are distinct, but both sides work together toward the same goal: maintaining and improving the community.

Common board responsibilities include:

• Approving budgets and financial plans
   
• Setting and updating community rules
   
• Making decisions on capital projects and major contracts
   
• Representing the community’s interests in legal matters
   
• Selecting and overseeing the management company

What is a Rhode Island property management company?

A Rhode Island property management company is a professional firm hired by the board to carry out the day-to-day operations of a community association. The company’s role is to implement the board’s decisions, provide expert advice, and manage logistics. For example, if the board decides that a roof needs to be replaced, the management company coordinates bids, schedules the work, communicates with residents, and tracks progress until completion. Management companies also help with compliance, maintenance planning, and financial administration, allowing board members to focus on governance instead of daily problem-solving.
 

Duties of a property management company

When discussing the duties of the board of directors vs management, it’s important to note that both have legal and practical responsibilities, but in different areas.

Management duties typically include:

• Preparing monthly financial reports and assisting with budget planning, reserve funds, and year-end packages
   
• Collecting association fees, managing delinquencies, and communicating clearly with residents
   
• Overseeing vendor contracts and onsite staff to maintain service standards
   
• Maintenance services for routine and emergency work to help protect shared spaces and building systems
   
• Supporting board operations by preparing agendas, managing elections, and distributing timely notices
   
• Helping enforce community rules and regulations fairly and consistently
   
• Keeping residents informed through newsletters, websites, emails, and 24/7 Customer Care teams

Key differences

The key differences between the board of directors vs management come down to authority, focus, accountability, and expertise:

• Authority: The board has ultimate decision-making authority, and management operates under the board’s direction.
   
• Focus: The board focuses on strategic planning and governance, while management focuses on daily operations.
   
• Accountability: The board answers to the community’s homeowners, while management answers to the board.
   
• Expertise: Management companies bring professional knowledge in finance, maintenance, and regulatory compliance, which supports the board’s decisions.

How boards and management work together

A healthy relationship between the board and management relies on mutual respect, clear communication, and well-defined roles. The board sets the vision and approves the budget, while management provides the tools, resources, and manpower to turn those plans into results. This partnership allows the community to run efficiently without overburdening volunteer board members.
 

Frequently asked questions

Who has more authority, the board or management?

The board has ultimate authority in a Rhode Island community association. The board makes decisions, adopts budgets, and sets policies, while the management company carries out those decisions. Management provides guidance and recommendations, but the board is the final decision-maker on all matters affecting the association.
 

Does every Rhode Island HOA need a management company?

Working with a management company may not be legally required, but it is strongly recommended. Some board members feel that self-managing might save money, but long-term savings in residential communities require careful budgeting and financial planning. Self-managed boards must have the expertise to manage these responsibilities effectively. Without the expert guidance and trusted vendor network of a professional property management partner, it’s possible to overlook critical expenses or opportunities to save in other areas, and self-managed communities often end up paying more in the long run.
 

What happens if the board and management disagree?

If the board and management have differing opinions, the board’s decision prevails. Management’s role is to provide professional recommendations based on experience, but ultimately, the elected board members decide the path forward and management is responsible for carrying out those decisions.
 

How can boards evaluate a management company’s performance?

Boards can track project completion, review monthly financial reports, solicit resident feedback, and meet regularly with the manager to discuss progress. Some boards also set measurable goals in the management contract and review them annually to evaluate performance.
 

Can the board change management companies?

If the board feels the current management company isn’t meeting expectations, they can follow the termination provisions in their contract and potentially hire a new firm. This process should be handled carefully to allow for a smooth transition from one property manager to another and avoid disruption to operations.
 

How often should the board meet with management?

Most boards meet with their manager at least once a month, though some prefer quarterly meetings if the community is smaller or less complex. Regular meetings help keep everyone aligned, address emerging issues promptly, and track progress on board priorities.
 

How FirstService Residential can help

Serving on a board in a Rhode Island community association means making decisions that shape your property’s value and residents’ quality of life. Understanding the difference between the board’s role and the management company’s responsibilities helps avoid confusion, improve efficiency, and keep projects on track. When both sides work in sync, your community benefits from strong governance, smooth daily operations, and a shared focus on long-term goals. If your board is ready for professional guidance, FirstService Residential brings the expertise, resources, and local insight to help your association thrive. Contact a member of our team today to learn more.