Running a homeowners’ association (HOA) is a lot like managing a small city. There are plenty of similarities—rules and regulations to enforce, budgets to balance, maintenance to oversee, and, of course, keeping neighbors happy. To handle these responsibilities, some communities hire a professional association management company to do the heavy lifting, while others prefer to roll up their sleeves and manage everything themselves.
But does an HOA really need a management company, or can it go the DIY route? The answer isn’t straightforward—it’s a balancing act between cost, convenience, and control.
Let’s take a closer look at these two approaches to HOA management, weighing the pros and cons of each, and figuring out whether self-management is a smart move or a potential headache in the making.
What Does an HOA Management Company Do?
According to the Foundation for Community Association Research, today, more than 75 million Americans enjoy the benefits of living in an HOA-governed community, which is nearly a third of all U.S. homes, and the number is rising. With 3,000 new HOAs appearing nationwide in 2024 only, more neighborhoods are choosing the peace of mind that comes with a well-maintained community.
Homeowners associations, along with condo associations and co-ops, do more than set neighborhood standards—they help create cleaner, safer, and more attractive places to live.
Here’s what a management company typically handles:
Financial Oversight and Budget Management
Running an HOA without solid financial management and accounting resembles filling a bathtub with the drain wide open—it just doesn’t work. Every dollar that comes in needs a purpose, and every expense needs to be justified. The HOA collects dues from homeowners and allocates these funds to cover expenses for essential services, future repairs, insurance, etc.
Maintenance and Repairs
Keeping a neighborhood in top shape isn’t just about curb appeal—it’s about protecting property values. Fixing leaky roofs, broken streetlamps, and potholes, repainting walls, or repairing dilapidated fences before they turn into costly disasters—all of these are the HOA’s responsibility.
Rule Enforcement
Let’s face it—nobody loves paying dues. But without them, the HOA would be running on fumes. The trick is making sure collections are handled smoothly, fairly, and transparently. A well-managed HOA has a plan for dues collection, and late payments, and deals with those “conveniently forgetful” homeowners who always seem to misplace their bills.
Legal Compliance
HOA laws and regulations can be trickier than a jigsaw puzzle missing a few pieces. One wrong move, and you’re knee-deep in a legal dispute. HOAs must manage governing documents, and navigate complex financial regulations, tax requirements, and state laws so as not to get into trouble.
Communication
Acting as the go-between for homeowners, vendors, and board members, an HOA management company ensures that everyone is on the same page. Crystal-clear communication works wonders in keeping things running smoothly. That’s why any updates related to upcoming projects, changes in community policy, vendor collaborations, and, most importantly, dues must be communicated promptly and transparently.
Vendor and Contractor Management
A good HOA knows how to negotiate contracts, vet vendors, and avoid overpaying for mediocre work. Finding the right balance between quality without draining the reserves is a crucial skill for HOA experts.
Although these daily tasks might seem simple at first glance, they require deep expertise, patience, and experience to manage effectively. Perhaps that’s why many homeowners choose HOAs—to avoid the hassle and let the experts handle the heavy lifting.
What Is a Self-Managed HOA?
Now, imagine a different scenario. Instead of hiring a professional crew, the HOA board members decide to run the show themselves. Welcome to the world of the self-managed HOA, where financial management, property upkeep, rule enforcement, and more rest on the shoulders of volunteers.
This setup can work well in small communities where everyone knows each other and shares a strong sense of responsibility. But it can also be like a potluck dinner—when it works, it’s great, but if too many people forget to bring a dish, you’re left with a lot of empty plates.
When it comes to the key responsibilities of a self-managed HOA, they’re largely the same as those of a professionally managed one—but with one big difference: they’re much harder to handle for those who aren’t cut out for running a community. It takes a dedicated team willing to harness their skills to keep everything in order and share roles and responsibilities accordingly.
Maintenance issues have a way of spreading like wildfire—a small leak in the clubhouse today can turn into a costly repair tomorrow. A self-managed HOA must stay ahead of upkeep to prevent minor problems from becoming major headaches.
Rule enforcement can be tricky, too, especially when it involves close neighbors. No one enjoys telling a friend their kid’s car is parked illegally, but ignoring violations can turn the community into a hotbed of disputes.
Compliance with state laws might not preoccupy most homeowners, but for an HOA, it’s crucial. Missing a deadline or misunderstanding a regulation can lead to legal troubles no one wants to deal with.
Sure, there’s a certain pride in a homegrown effort, where neighbors come together to make decisions that directly impact their shared space. But without the right knowledge and dedication, it can quickly feel like a full-time job—without the paycheck.
Pros & Cons of Hiring an HOA Management Company
More and more homeowners are choosing professional HOA management, and it’s easy to see why. A recent Rocket Mortgage study revealed that nearly half of the homeowners—43%, to be exact—believe their HOA is bringing real value to their neighborhood. Considering how often disagreements come up in this business, that’s a pretty impressive number. Plus, people are now willing to buy properties managed by an HOA, and that speaks volumes about the trust they’ve placed in these organizations.
However, hiring an HOA management company is not all smooth sailing either. In any community with diverse residents, disagreements are bound to happen. While a professional team can smooth out many bumps, common complaints still arise.
Like any other situation, before deciding whether you need an HOA and signing on the dotted line with a management company, it’s worth considering the pros and cons.
Pros of an HOA Management Company
Expertise on Tap
No need to reinvent the wheel—professional HOA managers know the ins and outs of running a community. From handling finances to navigating legal red tape, they bring a wealth of experience that keeps things running smoothly.
Less Stress for Board Members
Board members are volunteers, not full-time property managers. With a professional HOA, they can focus on big-picture decisions instead of chasing down unpaid dues or settling neighbor disputes. It’s one less headache on their plate.
Consistent Rule Enforcement
Nothing stirs up bad blood faster than uneven rule enforcement. A professional HOA ensures that everyone follows the same guidelines—no favoritism, no awkward confrontations, just fair play across the board.
Stronger Financial Management
Balancing a budget isn’t easy, especially when every dollar counts. With professional accountants keeping the books, there’s less guesswork, fewer surprises, and more financial stability for the whole community.
Better Vendor Deals
HOA management companies have connections—and that means better rates on maintenance, repairs, and upgrades. Since these costs trickle down to homeowners, securing the best deals keeps fees reasonable and wallets happy.
Cons of an HOA Management Company
Less control
With a management company handling operations, decisions may take longer, and homeowners might feel left out of the loop.
Unprofessional management
Not all HOA companies are created equal—some are responsive and proactive, while others can be slow, uncommunicative, or prone to tacking on hidden fees.
Lack of transparency
When it comes to budget management, homeowners often wonder, Where is my money going? If the HOA board isn’t open enough, it can fuel suspicion and frustration.
Pros & Cons of a Self-Managed HOA
More HOAs are opting to self-manage, and for good reason. By keeping things in-house, communities can cut costs, make decisions faster, and stay fully in control. Plus, when residents take an active role in governance, it often fosters a stronger sense of community.
But here’s the catch: Running an HOA is no small task. Managing finances, enforcing rules, and handling legal matters require time, effort, and expertise—not to mention a thick skin when disputes arise. So, is self-management the right move for your community? Let’s break it down.
Pros of a Self-Managed HOA
Direct Control
Decisions happen quickly when board members don’t have to go through a third-party manager. The community calls the shots—no outside interference.
Stronger Community Ties
When homeowners handle operations themselves, they feel more engaged and invested in the neighborhood’s success.
Flexibility in Operations
Self-managed HOAs have the freedom to tailor processes and rules to fit the unique needs of the community without adhering to a company’s standard protocols.
Cons of a Self-Managed HOA
Time-Consuming
Running an HOA is like having a second job—except there’s no paycheck. Board members must dedicate time to finances, rule enforcement, and administrative tasks.
Legal and Financial Risks
Without professional oversight, small mistakes in budgeting, compliance, or governance can lead to costly consequences.
Difficult Rule Enforcement
Telling a neighbor to repaint their house or remove an unauthorized structure can create tension, especially when friendships are involved.
Limited Expertise
Most board members aren’t financial analysts, property managers, or legal experts—yet they’re expected to handle complex matters in all these areas.
A self-managed HOA is like a neighborhood potluck—when everyone pitches in, it works well. But if volunteers stop showing up, things can fall apart fast.
Does an HOA Need a Management Company?
So, does an HOA need a management company, or can it go solo? The answer depends on the community’s size, resources, and willingness to take on responsibilities. While professional management can bring efficiency and expertise, some smaller communities prefer to keep things in-house to save costs and maintain full control.
If you’re on the fence, here are two scenarios to consider:
When to Hire a Management Company
- The HOA has 50+ units and a long to-do list.
- Board members lack experience in financial management or legal compliance.
- Homeowners prefer a hands-off approach to community management.
- Past self-management attempts have led to delays, conflicts, or financial issues.
- The community struggles with rule enforcement, vendor coordination, or financial transparency.
How to Choose a Professional Management Company
- Check credentials and experience. Look for a company with a strong track record and industry certifications.
- Compare services and pricing. Ensure their offerings match your community’s needs without unnecessary fees.
- Read reviews and ask for references. Speak with other HOAs they manage to gauge reliability and responsiveness.
- Understand the contract. Review terms carefully, especially regarding termination policies and additional costs.
When a Self-Managed HOA Might Work
- The community is small (under 30 units) with minimal maintenance needs.
- Board members have professional experience in finance, law, or property management.
- Homeowners want to reduce costs and keep full control over decisions.
- Residents are actively engaged and willing to take on responsibilities.
- The HOA already has clear rules and efficient processes in place.
How to Run an HOA Without a Management Company
- Create committees – Divide responsibilities among finance, maintenance, communication, and rule enforcement teams.
- Use property management software – Tools like Buildium or AppFolio help track finances, maintenance requests, and communication.
- Outsource where needed – Consider hiring an accountant or legal consultant for complex tasks.
- Stay proactive – Address issues early to prevent small problems from escalating.
- Follow the rules – Stay compliant with local laws and HOA bylaws to avoid legal troubles.
Ultimately, the right choice depends on your community’s needs, resources, and willingness to manage the workload. Whether hiring a professional or going DIY, a well-run HOA ensures a better living experience for all homeowners.
Final Thoughts
At the end of the day, does an HOA need a management company? It depends on the community.
A professional association management company can take the load off a busy board of directors but at a cost. A self-managed HOA can save money, but only if homeowners are willing to put in the time and effort.
Either way, the goal is the same—making the community a place people are proud to call home. Whether you hire a pro or do it yourself, one thing’s for sure: running an HOA is no walk in the park—but with the right approach, it doesn’t have to be a nightmare either.