For most HOAs, there are two options: work with a property management company to handle the day-to-day operations of your organization or go self-managed and take on all the responsibility in-house.But which of these is the right solution for your HOA? And how can you ensure that everything runs smoothly if you choose to go self-managed?
What is a Self-Managed HOA?
In the simplest of terms, a self-managed HOA relies on community members to handle all of the administrative, managerial, and financial tasks associated with an HOA. This is in direct contrast to many HOAs that employ a property management company to handle daily operations and ensure everything runs as it should. If you’re on an HOA board that is trying to decide whether or not to go self-managed, this distinction can mean the difference between a well-oiled machine and a chaotic mess that struggles to function under the weight of its own paperwork. Fortunately, there are ways to handle the daily operations of a self-managed HOA without succumbing to mountains of paper, but we’ll delve into that later.
Self-Managed HOA Pros and Cons
A simple way to decide whether to go self-managed or not is to make a pros and cons list and use the insights it provides to guide the decision. While every HOA is different, many of the day-to-day tasks they face are the same for all of them. As you read through these pros and cons, think carefully about how each applies to your organization and weigh them accordingly in your final determination.
Self-Managed HOA Pros
While it may seem like an overwhelming prospect, going self-managed is actually attainable for most HOAs. Here are a few of the benefits you will likely enjoy if your HOA chooses this route:
- Greater Control – One of the primary reasons many HOAs decide to go self-managed is that they want more control over how the HOA is run. This means that the homeowners in the community have more say over which projects get done and how the community as a whole is managed.
- Looser Rules – In a third-party run HOA, most rules are imposed with little regard for the community’s feelings about them but rather to ensure that property values remain as high as possible. On the other hand, when the homeowners are in charge, typically, the rules are designed to ensure that everyone’s properties are protected, but so are individual preferences and community well-being.
- More Community Involvement – When the community runs the HOA, you will see more community involvement and a greater sense of pride in the neighborhood. There is likely to be far more connection among community members and more communication as well.
- Fewer Expenses – A professional HOA management company can be a sizable expense, adding a large chunk to the HOA dues that each homeowner must pay.
Self-Managed HOA Cons
Of course, it’s essential also to examine the flip side of this important decision, as there are some serious cons to be aware of before going the self-managed route.
- More Work – Running an HOA is not an easy task and shouldn’t be undertaken without fully understanding the responsibilities and requirements. You must be able to manage financials, administrative tasks, code enforcement, and more.
- Dispute Resolution – When the homeowners within a community are in charge of the HOA, there can often arise conflicting personality types, leading to difficult disagreements that need to be resolved. The HOA president may at times feel like one part mediator and one part babysitter. If conflict resolution isn’t your strongest talent, you may want to consider finding help in this area before the inevitable disputes first arise.
- Impact on Home Sales – As we noted above, professionally managed HOAs tend to do everything necessary to ensure that property prices are maintained at the highest possible level. Self-managed HOAs don’t have the same focus on dollars above all else, meaning that property prices may suffer as a result.
Make Things Easier with Self-Managed HOA Software
Fortunately, there are ways to make self-managed HOAs easier to manage. With property management software like Enumerate Central, you can avoid many of the common pitfalls associated with HOA self-management. This type of self-managed HOA software allows you to run your HOA smoothly with a level of transparency that is unmatched by most other methods.
Our HOA management software lets you handle all of the financials, administrative tasks, and daily management problems in one convenient place. Our communications tools ensure that your entire team is always on the same page with a real-time activity feed that lets you track each member’s involvement and activity. Our accounting engine is both immensely powerful, incredibly intuitive, and completely configurable. It’s designed by experts in the field to work for your HOA, no matter its size or special circumstances. And our online homeowner’s portals deliver options for service requests, dues payments, and community documents to the fingertips of each homeowner on their preferred devices.
Enumerate Central software is designed by experienced professionals in the HOA management industry, allowing your organization to take advantage of all of their years of experience distilled into an easy-to-use interface. And with Enumerate, you’re never really going it alone. Our industry-exclusive Customer Success Team offers the help and support you need to manage your HOA successfully.
If you’re leaning toward going self-managed, watch a Enumerate Central demo today. Then get in touch with our team to see how we can help make the transition smooth and successful.
