Is Your HOA Considering Becoming Self-Managed?
Is your HOA considering becoming a self-managed community? Here, we’re going to talk about the things you might want to consider as you evaluate this decision.
Your community might have just been developed, and the builders have control of the association, or you’re currently in the contract of an association property management company. Some HOAs are more comfortable and find it efficient to be self-managed. While other HOAs find the thought of leaving their property management company contract unsettling. Let’s briefly discuss the typical services offered by an association property management company.
A contract could often include an assigned manager who oversees the community. That manager would attend an agreed-upon number of yearly board meetings, communicate directly with homeowners and vendors, provide monthly property visits, and send the board monthly financial reporting, among other things. Depending on the HOA, a management company is necessary for certain communities to function. Perhaps the community is too large to be managed by homeowners, or there might be too many moving parts making it nearly impossible to imagine operations outside of this level of oversight.
Why Do Boards Choose to be Self-Managed?
However, there are many self-managed HOAs around the country because management companies can be very expensive, and not all communities want to pay for a large monthly contract. An association that switches to becoming self-managed can save a community thousands of dollars per year. Reducing these costs can help fund future projects or delay a dues increase.
In addition, some boards choose to go self-managed because they want to have more control. Not only over costs, but operations as well. For example, a property manager might only be on-site once per month, while the board, they’re the eyes and ears of a community 24/7. They have an invested interest in how the community is cared for. They want to be the one to communicate with their members and vendors instead of a management company. At the end of the day, self-managed associations are used to doing things themselves, and often, they’re very good at it.
If a board is in contract with a property management company but is used to communicating with homeowners and vendors directly, getting bids, making decisions on future projects without their input, then a switch to being self-managed is a no-brainer.
A high-capacity board that invests time in their community should acclimate well to this new reality. Keep in mind that even if an association chooses to become self-managed, it is still recommended that a board consider hiring someone to perform their monthly financial reporting due to the liability and perception that exists with managing your HOA’s financials as a community member.
At HOA Assist, we understand the challenges of finding an affordable service for associations that want assistance without having to pay a high monthly cost for it. HOA Assist is a perfect complement to an association seeking to have their financials done by HOA accounting professionals and an interactive website to help communicate with their members, pay dues, view governing documents, and so much more.
Contact HOA Assist Today
Call us today or visit us at www.hoa-assist.com to discover why self-managed associations around the country are switching to HOA Assist to help run their community.