Can an HOA Be Self-managed?
Does a Homeowners’ Association have the ability to self-manage?
The question; can an HOA be self-managed? The short answer; it will entirely depend on the capacity of those in charge. Before answering this question, it’s important to understand the purpose of having an HOA. In very simple terms, an HOA exists to protect the property value of a community. Therefore, there are certain governing documents in place to regulate residents and the standards required for the condition of their property. Fees are collected to maintain common areas and amenities available to residents. The HOA is in charge of all aspects of the community, including following laws, enforcing rules, collecting fees, notifying members of policies, changes, emergencies, maintaining common property and amenities, etc. There are many benefits of association management software that will help make things easier for the team.
All of this considered, an HOA can be self-managed, however, the decision to self-manage ownership of community property should be made after carefully considering the pros and cons. Regardless of who manages the HOA, having the right software to support all aspects of association management is crucial. HOA Start offers a complete software solution for association management.
The Pros of a Self-managed HOA
Many property owners believe that hiring a property management company raises fees and limits the members’ say in how decisions are made.
When communities are self-managed, the association, through its elected board of leaders, handles all the decision-making, including the assessment of fees.
The board is generally made up of a president, vice president, treasurer, and secretary, although other officials may be appointed as needed. These leaders are selected by the association members. Regular meetings ensure that community voices are heard and the decisions made are in agreement with majority values.
Although a self-managed HOA offers a coveted level of autonomy, there are also risks involved if you do not have the proper tools or residents willing to volunteer for the responsibilities involved.
Cons of a Self-managed HOA
If you have enough willing residents with the proper knowledge who want to form a board and are trusted by the community to manage the HOA, then self-management might work great for you. However, not every community has a lawyer, (or someone familiar with relevant laws) an experienced person in finances, and several others who are willing to invest the time in all aspects of running an HOA. Most community members don’t realize how much work actually goes into running a successful HOA. Without the right people for the job, you’re most likely going to run into problems with poor management, indifference from board members, poor communication or responsiveness to complaints, mismanagement of money, and complications or even violations of the law.
Should Your HOA Be Self-managed?
After you’ve considered the pros, the cons, and the members of your HOA community, you may be closer to deciding whether your property would benefit more from being self-managed or if hiring a property management company is in your best interest. Either way, you will need tools to manage the business tasks of your association. HOA Start offers total solution software that can streamline everything from email communication to fee collection for your community, no matter how big or small. Check out their website for more information.