The Pros and Cons of Hiring an HOA Management Company vs. Self-Management

Homeowner’s associations (HOAs) are an important part of many communities in the United States. These organizations help to preserve property values and mitigate any conflicts.

Despite being extremely crucial to the success of a community, HOA Boards are comprised of volunteers. These volunteers must determine if they have the needed skills to manage the community effectively or if they should hire a professional HOA management company. 

If you are making this decision, the rest of this article includes the pros and cons of both options.

Hiring an HOA Management Company

First, let’s discuss the pros and cons of hiring an HOA management company. These are professional firms that assist HOAs in managing their communities. The top HOA management companies offer comprehensive services that handle administrative, financial, and operational tasks for the Board. 

Pros

Here are a few reasons why you may decide to hire an HOA management company. 

• Expertise: Professionals managers will have experience and expertise that is likely missing from your Board members, meaning they can navigate the complex issues of running an HOA with confidence. 
• Reduced workload: HOA management companies take care of the day-to-day tasks that can bog down a Board, leaving them time and space to make important long-term decisions for the community. 
• Vendors: Most HOAs will use vendors for maintenance and repair tasks. HOA management companies will have established relationships with trusted vendors, which can lead to cost savings and better services. 

Cons

There are some drawbacks to HOA management companies, including the following. 

• Cost: Hiring a management company will be an added expense in your budget, which could increase your HOA dues. 
• Loss of direct control: If your Board wants to retain complete control over the community, then outsourcing management may not be the right decision for you.

Using Self-Management

Despite their lack of expertise, many HOA Boards decide to manage their own communities.  you are considering this option, here are a few pros and cons to consider. 

Pros

Some advantages of self-management include the following. 

• Cost savings: Without professional management fees, self-managed HOAs can allocate more funds to community improvements or reduced dues. 
• Community engagement: Self-management can foster a sense of ownership in the community, which could encourage more homeowners to participate in meetings and decision-making. 

Cons

Here are some important drawbacks of self-management. 

• Overwhelming time commitment: Managing an HOA is similar to running a small business. It can easily take over a Board member’s life. 
• Difficulty enforcing rules and collecting assessments: Because the Board members live in the community, enforcing the rules fairly and consistently or collecting from delinquent neighbors could be a challenge. 

There is no right or wrong answer when you are deciding between self-management and hiring a professional HOA management company. Consider the pros and cons, and then make the decision that is best for your community. 

For help in making your decision, contact Omega Property Management.