For small homeowners associations (those with fewer than 50 units), the question of whether to hire a professional partner or handle things in-house comes up regularly. Both approaches have genuine advantages, and the right answer depends on your community's specific circumstances, resources, and tolerance for risk.
This guide lays out the key factors to help your board make an informed decision.
The Case for Going Self-Run
Many small HOAs operate successfully without a professional partner. When the community is small, engaged, and relatively simple in its operations, a self-run approach can work well.
Cost savings are the most obvious advantage. Professional support fees typically range from $10 to $25 per unit per month for small associations. For a 30-unit community, that translates to $3,600 to $9,000 annually. Self-managed boards can redirect those funds toward maintenance, reserves, or reduced assessments.
Direct control is another benefit. Board members handle decisions and communications without a middleman, which can mean faster response times and more personalized interactions with homeowners.
Institutional knowledge often runs deep in self-managed communities. Long-serving board members understand the property's history, know the homeowners personally, and have established relationships with local vendors.
The Challenges of Running It Yourself
However, going self-run carries real risks that boards should assess honestly.
Compliance exposure is perhaps the greatest concern. California HOA law is extensive and changes regularly. Davis-Stirling requirements for meeting notices, election procedures, annual disclosures, and assessment collection are detailed and carry legal consequences when not followed. Board members who are not familiar with these requirements may unknowingly expose the association to liability.
Volunteer burnout is common. Managing an HOA requires consistent time and attention for tasks like collecting assessments, coordinating maintenance, responding to homeowner requests, tracking insurance renewals, and preparing budgets. When the workload falls on two or three volunteers, fatigue sets in quickly.
Financial oversight risks increase without professional support. Errors in bookkeeping, missed tax filings, or improperly maintained reserve accounts can create serious problems that are expensive to fix.
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The Case for Professional Support
A professional partner brings expertise, systems, and accountability that are difficult for volunteer boards to replicate.
Compliance support is a primary benefit. An experienced California HOA firm understands Davis-Stirling requirements and ensures that annual disclosures, meeting procedures, and election processes meet legal standards.
Financial administration is handled professionally, including assessment collection, accounts payable, bank reconciliations, and preparation of monthly financial statements. This reduces the risk of errors and provides clear financial visibility for the board.
Vendor coordination improves when a professional team leverages its portfolio relationships. Established companies often have preferred vendor networks and can negotiate competitive pricing on behalf of their client communities.
Consistency is another advantage. Board members come and go, but a professional partner provides continuity. Institutional knowledge is maintained in the system rather than in a single volunteer's memory.
When Professional Support Makes the Most Sense
Consider professional support if your board experiences any of the following:
- Difficulty recruiting volunteers willing to take on administrative tasks
- Uncertainty about California compliance requirements
- Growing complexity in the community's financial or maintenance needs
- A history of disputes or homeowner complaints about board operations
- Board members who travel frequently or have limited availability
Even small associations benefit from professional support when the alternative is inconsistent operations or compliance gaps that put the entire community at risk.
A Middle Ground: Hybrid Approaches
Some small HOAs find a middle ground by hiring a professional partner for specific services rather than full-scope support. For example, a board might self-manage daily operations but hire a company to handle financial administration, annual disclosures, or election facilitation.
This approach lets the board retain hands-on control while offloading the tasks that carry the most compliance risk or require specialized expertise.
Making the Decision
The right choice depends on an honest assessment of your board's capacity, your community's complexity, and your appetite for risk. If your board has engaged, knowledgeable volunteers with the time to dedicate, a self-run approach can be cost-effective and rewarding. If capacity is thin or compliance concerns keep board members up at night, professional support is an investment that pays for itself in reduced risk and improved operations.
Whatever path you choose, the goal is the same: a well-run community that protects property values and serves every homeowner fairly.