The idea of self-managing your HOA can seem appealing. After all, you can save a hefty amount of money and use it to improve the quality of life of your association. However, managing something which includes hundreds or maybe thousands of people and various amenities can be challenging.
Handling an HOA includes managing the budget and finances, collecting dues from homeowners, dispute resolution, enforcing rules and ensuring everyone obeys them, maintenance management, and more. If self-managing does not sound like a good idea for your HOA, you can hire the services of Phoenix HOA management companies.
What is a self-managed HOA?
Self-managed HOA is just the opposite of company-managed HOA. In the latter, a group of professionals handles the day-to-day tasks of an HOA. On the other hand, a self-managed association is dealt with by the board members themselves.
The HOA board members take it on themselves to do the tasks required to maintain a community. Since they do not take professional help, members must have the job’s qualities, experience, and time to dedicate. Otherwise, the operation can prove to be disastrous.
Pros of a self-managed HOA
- Saving money – Professional services with experienced and skilled workers require money. Therefore, if you manage an HOA on your own, you save a lot of money. If your association is experiencing a financial crisis and cannot afford professional services, self-managing is your best option.
- Set your own rules – When a third party is involved, they set their own rules for managing the association and work in their own ways. Some of their rules and way of working may even upset the residents. Self-managing enables you to create your own rules and take suggestions from the residents.
Cons of a self-managed HOA
- Poor management – Board members may not have the time and expertise that is required for managing a whole community. Members are regular people and do not get paid for handling the tasks. Therefore, they have their other jobs and personal lives. They might be unable to devote the time needed for adequately managing an association. Moreover, they might lack the appropriate skills.
- Legal problems – If your HOA board has a member with a law degree, you would not have to worry about this. However, if not, then your board can potentially invite legal problems. For managing an HOA, you must enforce proper rules. However, if you impose a rule that is illegal according to your state’s laws, serious troubles can occur. In order to stay safe, all the board members must familiarize themselves with all the federal and state laws and keep up with the new changes.