For large and complex homeowner’s associations, engaging a property management company to keep track of all the moving parts makes sense. Associations that do not have professional managers on staff might find the range of duties – from maintenance requests, communications, collection of common charges, the payment of vendors, bookkeeping, rule enforcement, surveying and more — to be too time-consuming, at which time outsourcing the work to professionals saves time and money. But what about smaller associations? In this blog post, we’ll examine why A self-management HOA might be right for communities.
What Is a Self-Managed HOA?
A self-managed homeowner’s association is entirely serviced by directors elected by the homeowners with no professional help from an outside HOA management company. The HOA board, which is composed of volunteer members from inside the community, handles all of the day-to-day aspects of the association, taking on the tasks of finance and accounting, billing, settling disputes, and hiring outside contractors.
What Are the Benefits of Self-Managing the HOA?
Keeping costs low is one of the primary benefits. HOA management companies’ services do cost money, and association members may already be struggling with HOA fees. By self-managing, the board can help keep costs lower. Since professional management companies are tasked with ensuring that property values are at least maintained or even increased, they may be overzealous with projects such as renovations or excessive maintenance, which can drive costs up even further.
In addition, self-management HOAs may offer the benefit of making it easier to resolve conflicts. Conflicts between homeowners or homeowners and the board are common, and bringing a third party into the mix may make conflicts worse. For smaller associations that have a past history of remaining civil, it may work best to keep management within the HOA family. That way, HOAs can focus more on serving the community’s needs rather than the needs of an outside party.
What Are the Drawbacks of Self-Managing the HOA?
Since most HOA boards are volunteers, even small associations may find that there aren’t enough hours in the day to engage in the kind of tasks that keep HOAs running smoothly. Even if the volunteers are willing, they may not have the kind of expertise necessary to properly maintain the property and comply with all rules and regulations. They may be reliant on outdated technologies and management processes, causing them to become bogged down in procedural tasks. Board members may eventually come to resent the time and effort it takes to do the job while trying to maintain their jobs and lives.
Is There a Middle Position Between Professional and Self-management?
For many homeowner’s associations, there is a good middle road. Engage a professional HOA management company for the times you need coaching or consulting. Even if you have built a successful framework for self-management, there may be times when you wish to consult a professional for complex issues, problems, or initiatives, so even if you choose to self-manage, it may be a good idea to form a limited partnership with a professional company.
Paladin Property Management offers management of day-to-day operations for HOA client associations, including maintenance requests, communication, collection of common charges, payment of vendors, bookkeeping, rule enforcement, resale packages, and construction projects, as well as any other routine administrative responsibilities. We offer consulting services to HOAs that are largely self-managed. For more information or to contact us, call 860-395-8863 or visit our website.