Should our HOA self-manage or hire a management company?
By OurHOA · General information · Revised
Compare the work, available volunteers, and contract scope before deciding who should manage the association.
List the work before comparing prices
Start with what someone must do each month: reconcile accounts, handle owner questions, pay bills, coordinate vendors, maintain records, and prepare meetings. Add annual work such as budget preparation, insurance renewal, and tax filings. For each task, identify the current person, the time it takes, and who can cover an absence. That list is a better starting point than choosing a management model by the number of homes alone.
Self-management requires people as well as tools
Self-management can work when volunteers have the time, relevant skills, and willingness to follow agreed procedures. It still needs outside help for work the board cannot do responsibly, such as legal advice, accounting, or specialist inspections. Software can organize records and payments; it does not supply a missing treasurer, make a legal decision, or supervise a contractor in person.
Compare written scopes, not headline fees
Ask each prospective manager to price the same services. Check meeting attendance, after-hours calls, mailings, collection work, project supervision, setup, and termination costs. Ask who will handle your community, how many others they serve, and what response times they commit to. Request references from associations with similar responsibilities. There is no reliable rule that management will be your largest expense or cost more than all other services combined.
Consider a narrower service contract
The choice need not be all or nothing. A board might retain daily decision-making while hiring bookkeeping, administrative, or project help. Write down what the provider does, what remains with the board, and who checks completion. Compare the total cost with the workload left for volunteers; a cheap contract with large gaps may not solve the problem that prompted the search.
Plan the handover before giving notice
Review the existing contract’s notice and termination provisions. Agree how bank access, financial records, open requests, contracts, and owner contact information will transfer. Confirm who handles urgent issues during the change. Set a review date after the transition and check whether reports arrive, questions get answered, and assigned work is completed.
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.