Managing a homeowners association is no small task, and one significant decision that boards often face is whether to hire a management company or handle everything in-house. This article explores what a self-managed HOA is, the pros and cons of going that route, and what it means for your community long term.
What Is a Self-Managed HOA?
When an HOA is self-managed, it means the board of directors, who are also homeowners in the community, handle everything without hiring a professional management company. They take care of tasks such as collecting dues, coordinating repairs, addressing complaints, and ensuring the rules are followed.
Instead of relying on outside help, the board runs the show. That means they’re answering emails from neighbors, reviewing maintenance quotes, balancing the budget, and making day-to-day decisions about how the community is run.
This setup works best when the community is small, the board is hands-on, and there is enough time and expertise to keep things running smoothly. It’s not for everyone, but with the right people in place, it can be a cost-effective and personal way to manage an HOA.
Why Some HOAs Choose to Self-Manage
There are a few reasons an HOA might decide to go the self-managed route:
- Cost savings – Hiring a professional management company can be expensive. Smaller HOAs may not have the budget to afford one.
- More control – A self-managed HOA keeps decisions and oversight entirely within the community. This can mean faster response times and more tailored policies.
- Community involvement – Some neighborhoods value close-knit community dynamics and feel that residents are more invested when they handle management themselves.
But while these benefits can be attractive, they also come with trade-offs that every board should consider carefully.
The Pros of a Self-Managed HOA
When self-management works effectively, it can yield significant benefits for the community.
You Save on Management Fees
One of the primary reasons HOAs opt for self-management is to save money. Management companies often charge thousands of dollars per year. When you handle things internally, that money can stay in the community’s budget.
More Control and Transparency
Board members know their community better than any outsider. With self-management, decisions stay in-house, and homeowners may feel like they have a clearer view of what’s going on.
Better Sense of Community
Since board members are also neighbors, people might feel more comfortable reaching out with concerns or ideas. Self-managed HOAs often see more engagement from residents because things feel more personal.
Flexibility
Without a third-party company involved, the board can adjust processes, make changes, and respond quickly to situations without having to jump through as many hoops.
The Cons of a Self-Managed HOA
Of course, there are some real downsides to going it alone, especially if the board isn’t fully prepared.
It’s a Lot of Work
Running an HOA takes time. Even basic tasks, such as scheduling maintenance or preparing a budget, can consume hours of work every month. That time commitment can be uncompromising for volunteers with jobs, families, or other responsibilities.
Mistakes Can Be Costly
Most board members aren’t legal experts, accountants, or property managers. Without the right background, it’s easy to make a mistake—like mismanaging funds or violating a state law—that could come back to bite the HOA.
Burnout Is Real
Volunteers can become overwhelmed quickly, especially if they’re not receiving sufficient support from the community. That kind of stress can lead to burnout or conflict within the board itself.
It’s Hard to Stay Neutral
If a neighbor breaks a rule, and the person enforcing it lives two doors down, things can get uncomfortable. It’s hard to avoid the appearance of favoritism—or drama—when the people in charge are also part of the community.
Fewer Resources
Professional management companies come with a lot of built-in resources—legal advice, accounting tools, vendor relationships, and so on. When you’re self-managed, you’ll need to find those things on your own.
Key Responsibilities of a Self-Managed HOA
Running a self-managed HOA means the board assumes the core tasks that a management company would typically handle. Here’s a quick look at what that includes:
- Finances: The board will need to handle budget planning, dues collection, paying the bills, and handling financial records.
- Vendor Coordination: The board will be responsible for hiring and managing any vendors who provide landscaping, repairs, or other community services.
- Rule Enforcement: The board must ensure that rules are correctly enforced. They will also need to address violations and resolve resident disputes.
- Maintenance Oversight: The board must also oversee common areas, such as parks, pools, and sidewalks.
- Legal and Compliance: Staying on top of California HOA laws and keeping the association in good legal standing is part of the HOA board’s responsibilities.
- Communication and Records: Board members need to handle notifications, homeowner inquiries, and the record-keeping for essential documents.
Even for a small HOA, these duties require time, teamwork, and attention to detail.
When Does a Self-Managed HOA Make Sense?
A self-managed HOA can work well under the right circumstances. Here are some scenarios where it may be a good fit:
- The community is small, with fewer than 25 units.
- Board members are highly engaged and have relevant experience in law, finance, or property management.
- The HOA’s budget is too limited to support a management contract.
- The community is generally low-maintenance, with few amenities and straightforward needs.
- The association seeks greater direct involvement and transparency in its operations.
However, as the community grows, so do the responsibilities. Many self-managed HOAs eventually reach a point where they need professional help.
Red Flags That Self-Management May Not Be Working
Even if things start smoothly, problems can arise. Here are some signs that your self-managed HOA may need outside help:
- Board members are missing deadlines, meetings, or critical tasks.
- Finances are disorganized, or dues go uncollected.
- Homeowners are frequently filing complaints or accusing the board of bias.
- There’s confusion about legal compliance or document requirements.
- Maintenance issues are piling u,p or vendors aren’t showing up.
- Board turnover is high, and morale is low.
If your HOA is experiencing any of these issues, it may be time to reevaluate whether self-management is still the right fit.
Self-Management vs HOA Management Company
It’s important to understand the difference between a self-managed HOA and one overseen by a management company. In the debate between self-management and HOA management companies, it ultimately comes down to priorities.
A self-managed homeowners association works well when the board has time, experience, and the right tools to run things smoothly. This is more realistic in smaller communities with limited needs.
On the other hand, a professional HOA management company brings in experts to handle operations, which is especially helpful in larger or more complex communities. It costs more, but it can reduce stress and legal risks.
| Self-Managed HOA | HOA Management Company |
| Lower costs | Professional expertise |
| Greater control | Saves board time and stress |
| Higher board involvement | Built-in vendor relationships |
| Risk of burnout | Reliable systems and tools |
| Limited experience | Regulatory compliance help |
If your HOA values professional guidance, has complex operations, or is growing rapidly, partnering with a management firm might be a wise move. On the other hand, self-managing a small HOA may be sustainable with the right commitment and skills on the part of the board.
How to Transition to or from Self-Management
Switching to or from self-management is a big move. Here’s how to plan it out, depending on which direction you’re headed:
Moving to Self-Management
- Check the board’s readiness: Do you have enough volunteers who are willing and able to take on key tasks?
- Divide responsibilities clearly: Assign roles and use tools to stay organized, like HOA software or shared folders for records.
- Review your governing documents: Make sure nothing in your bylaws or CC&Rs prevents self-management.
- Line up vendors and professionals: Even if you’re managing the HOA, you’ll still need help from vendors—and maybe an accountant or lawyer.
- Get homeowner support: Keep residents in the loop so they know what’s changing and how it will affect them.
Hiring a Management Company
- Talk through it as a board: Everyone should agree that it’s the right time to bring in help.
- Vet companies carefully: Look for firms with experience managing HOAs of your size and a reputation for good communication.
- Know what you’re signing up for: Understand what’s included in the contract and how much flexibility you’ll have.
- Make the transition smooth: Organize your documents, schedule meetings, and ensure homeowners know who to contact going forward.
Whether you’re stepping into self-management or handing things off, planning makes all the difference.
Questions to Ask Before Going Self-Managed
Not sure if a self-managed HOA is right for your community? Ask these questions first:
- Do we have board members who are willing to take on this amount of work?
- Does anyone have experience in finance, law, or property management?
- Are we okay with using some of the budget for tools or outside help, even if it’s not hiring a full management firm?
- Can we stay fair and consistent when enforcing rules?
- Is our community small or simple enough to manage without extra help?
Honest answers will help you figure out whether self-management is the right move, or if it’s better to stay with or hire a professional.
Can You Have Hybrid Management?
Some HOAs find success with a hybrid approach. The board might handle things like rule enforcement or communication, but hire an accountant or legal advisor for more technical tasks. This can save money while still giving you access to expert help when needed.
It’s a good fit for communities that want to stay involved but also recognize where outside support is valuable.
Making the Best Choice for Your HOA
There’s no perfect way to run a community, just what works best for the people in it. Take the time to really look at what your board can handle, what your homeowners expect, and what your community needs to thrive. From there, the right choice usually becomes clear.
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