Can an HOA board member also be the paid property manager?
By OurHOA · General information · Revised
Check compensation restrictions, contract approval rules, and independent oversight before combining a board seat with paid management work.
Separate volunteer tasks from a paid contract
A board member answering emails or coordinating repairs as part of volunteer service is different from a director receiving payment under a management agreement. Employment by a management company, ownership of a vendor, and compensation paid to a relative can raise different questions as well. Write down the actual roles, financial interests, duties, and proposed payments before asking whether the arrangement is allowed. There is no single nationwide answer based only on the title property manager.
Check whether the arrangement is permitted at all
Review the association’s governing documents, the relevant association and corporate statutes, and any applicable management licensing requirements. Identify restrictions on director compensation, contracts with interested directors, and approval by members or disinterested directors. A general rule allowing some interested transactions does not override a separate prohibition. Have the association’s counsel assess the proposed arrangement before hiring or paying the director, rather than assuming that a disclosure or abstention will make any contract valid.
Read the approval rule accurately
California provides an example of why the details matter. Civil Code section 5350 applies Corporations Code sections 7233 and 7234 to covered board transactions. Section 7233 describes circumstances in which an interested-director transaction is not void or voidable for the specified conflict alone. One route requires disclosure, a sufficient good-faith vote without counting interested directors, and terms that were just and reasonable when approved. It also describes other routes. This is not a universal rule that every conflicted contract is automatically invalid, nor proof that a particular paid-manager arrangement is permitted.
Design oversight that does not depend on self-approval
If the arrangement is permitted, assign someone independent to approve invoices, review performance, verify records, and handle complaints about the paid work. Put the scope, compensation, spending limits, reporting duties, and termination process in writing. Record the disclosed interest and the actual approval procedure followed. Compare alternatives so the board can explain its choice. Ask the insurance adviser how the policy treats paid management work and volunteer board duties; do not assume coverage or immunity simply appears or disappears when the person receives compensation.
Ask for records without turning a concern into an accusation
An owner can start by requesting the management agreement, relevant approval records, and an explanation of who supervises the work, using the applicable records-request process. Identify a concrete concern such as an invoice approved by its recipient or an undisclosed ownership interest. A shared role deserves scrutiny, but it is not by itself evidence of theft or a finding that the contract is unlawful. If the records do not resolve the issue, seek advice about the association’s specific documents and jurisdiction.
Sources
These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.