Many homeowners’ associations today choose to self-manage rather than bring in an outside company to take on this role. Before an association decides on this route, everyone involved must understand what will be required of those serving on the board of directors. In addition, they must know the risks the community is taking on. However, self-managing the HOA comes with benefits that should not be overlooked.
What is a Self-Managed HOA?
Self-managed HOAs are those associations that rely on an appointed board of directors to run the community. Many associations handle matters this way now, but it requires time and effort on the part of those appointed to the board. In addition, they need experience in their various roles. If members of the community are committed to the roles they take on, this can be a wise move. The following serve as some benefits that come with self-managing the association.
Cost-Effective
A self-managed HOA may charge residents of the community less in association fees. They aren’t paying a professional management firm to handle this task, so they can use funds elsewhere to benefit the community. In addition, tasks may be turned over to board members with experience in a particular area.
For example, a treasurer may have a day job as an accountant. If so, they can handle many financial tasks on behalf of the board, only outsourcing those tasks they don’t feel equipped to address for fear of a conflict of interest. Another member of the board may be able to do certain maintenance tasks around the community, again leaving certain ones to the professionals. This helps to keep costs down for all residents in the community.
Autonomy
In addition, when the community appoints a board of directors to oversee the association, this board has complete control over the association. They make all decisions regarding the community without a management firm questioning every decision. Nevertheless, residents must monitor the board to ensure the directors don’t misuse their power.
One board member might try to force decisions on other board members, using bullying tactics to get them to agree with a decision. There is no neutral party to help in this situation. In addition, there is a lack of transparency, which could lead to corruption on the part of one or more board members. Residents of the community must remain involved and provide oversight for the board to ensure problems such as these don’t arise.
In addition, the board must have some knowledge of homeowners’ association laws in the state. They need to ensure the community remains in compliance with these laws. Having an attorney on the board or one on retainer can be of help in many situations.
If a community decides to self-manage the homeowners’ association, it should invest in tools to make the job easier. For example, a top hoa management software program will be of benefit to the board. The program can be used for event scheduling, communicating with residents, and more. Learn more about this type of program to see why many associations wouldn’t decide to self-manage without one in place.
