Is Self-Managed HOA Right for You?
What is a Self-Managed HOA?
A self-managed HOA operates without hiring a third-party management company. Instead, the board of directors and community volunteers handle administrative tasks, financial management, and maintenance oversight.
In the U.S., there are roughly 370,000 HOA-run communities, and more keep popping up, about 14 new ones every day. To put it in perspective, over 80% of the homes sold in 2023 were part of HOAs!
So yeah, they’re not going anywhere.
Common reasons why communities decide to do it all themselves:
1. It Can Cut Costs
Hiring a management company isn’t cheap. Their fees often raise monthly dues for homeowners. By managing everything in-house, some HOAs are able to spend less and direct more money where it’s actually needed.
2. More Control Over What Happens
When there’s no outside company involved, the board can make decisions faster. There’s less red tape.
3. Stronger Community Involvement
Without a management company acting as the go-between, the board often has more direct contact with residents.
But There Are Tradeoffs.
Self-management has its perks, but it’s not simple. Here are a few things to think about:
1. Legal and Regulatory Responsibilities:
Even small HOAs have to meet legal requirements, like filing taxes, renewing insurance, or following state housing laws.
2. More Work for Volunteers:
There’s budgeting, coordinating vendors, scheduling repairs, handling complaints… the list goes on.
Self Managed or Hiring a Management Company
Be honest about what your community needs and what your board can handle. If all of this makes you worn out, companies like HOA Simplified can step in and take all of the grunt work off of your back.
Self-managed or Management Company… the choice is yours!
Key Definitions that might help:
Board of Directors: Homeowners elected to oversee the HOA’s rules, finances, and operations.
Management Company: A hired business that handles day-to-day HOA tasks like billing and maintenance.
Dues: Monthly or yearly payments from homeowners to fund the HOA’s expenses.
Bylaws: The HOA’s internal rulebook for how meetings, elections, and decisions are handled.
Reserve Fund : Savings for big future costs, like roof replacements or major repairs.
Quorum: The minimum number of members needed to make HOA decisions official.
Assessment: A charge to homeowners, usually for repairs or unexpected costs.
Vendor: A company hired by the HOA for services like landscaping, cleaning, or repairs.
