Can Software Help You Self Manage Your HOA Community?

Key Takeaways

• Many HOAs hire property management companies (PMCs) to do the necessary day-to-day accounting, vendor contract oversight, and homeowner communications.
• PMC fees considerably boost monthly costs for homeowners.
• HOA board members are ultimately accountable for the quality of a management company’s work.
• Many homeowner association boards find that purpose-specific HOA software makes it possible for them to accomplish the tasks that a PMC was doing, saving money for HOA members and sometimes enhancing community satisfaction.

Looking for homeowner association management help? Is self-management software or a property management company best for your HOA?

While many think paying a third-party manager to run your HOA will leave your days worry-free, the elected board members are ultimately any management company’s bosses. As such, they must faithfully review their work to be sure that every assigned task is done for the community’s good.

A PMC is sometimes a welcome cushion between HOA board members and especially demanding residents, but board members’ insights into issues and the face-to-face nuance of personality conflicts may often be needed.

Even if you have a less-than-ideal relationship with your HOA’s management company, you may worry that you and your board cohort won’t be able to do everything required to self manage your HOA. The right comprehensive self managed HOA software, though, can allow you to optimally run your HOA for a fraction of the cost a PMC would charge.

Below are the top ways using self managed HOA software may enable you to replace your HOA’s management company and help you run an association more smoothly and to your liking.

5 Ways PayHOA Outperforms a Third-Party Management Company

1. Collecting Payments
2. Rule Enforcement
3. Protecting Your HOA’s Data
4. Maintaining Legal Compliance
5. Adding Value to Your Neighborhood

Collecting Payments

A third-party manager may have its attention and efforts divided among multiple client communities.

Even if collections are diligently pursued, PMCs typically charge a flat fee to collect dues based on the number of units or properties in the HOA. What this fee covers often varies widely among companies, with some even charging extra fees each time they issue an invoice or notice for a late payment, so your HOA may find itself paying extra for services you expected to be included. 

This can add up to a lot of money that your HOA must absorb or pass on to your residents, taking valuable funds away from possible property improvements.

Automation with PayHOA helps prevent late payments.

Self managed HOA software provides several tools to ensure your HOA rarely spends extra money to get monthly dues paid. With PayHOA, you can easily issue invoices via mail, but by issuing via email or text, there’s a record of receipt that gives well-intended procrastinators a nudge to pay on time. 

The online payment portals provided by the software also make it easier for those who might delay their dues simply for lack of a handy envelope or stamp. The system can even be programmed to give early payers a discount to incentivize promptness and automatically to add late fees to overdue homeowner accounts. Automated follow-up reminders via phone call or text can also decrease delinquencies, and your HOA won’t pay any additional fees for these services with PayHOA.

Using software will also help prevent late fees in the first place. PayHOA offers autopay to its users, which means homeowners are less likely to forget to pay in the first place. 

Rule Enforcement

Even the best-intended third-party PMCs may feel they have to “go by the book” to protect themselves when enforcing HOA rules. Since they don’t have the intimate connections of community with the people and properties that volunteer (resident) board members do, they may not be able to apply the nuance or grace that those volunteers would extend to questionable violations or first-time offenders, simply as a matter of practicality or legal compliance. 

Serve violations appropriately.

Ironically, software allows for a human element where a management company often cannot. This is especially helpful when managing rule violations.

As fellow homeowners, your HOA volunteers may be familiar with the violator and know that their violation was an honest mistake. You can judge these cases individually and with nuance.

At the same time, the software provides a barrier between the HOA and its homeowners should you need to pass down a violation. You can send notices through the platform, depersonalizing the process.

Protecting Your HOA’s Data

A third-party company owns your information.

If you hire a third-party company to take over your HOA’s operations, they will have layers of information about each property in the association. Since they are running your HOA’s bookkeeping and financial information, having something lost in translation between the PMC and your HOA can create community conflict.

The management company may make its decisions without the neighborly perspective of resident officers. Conversely, the board may end up making decisions without all the nuts-and-bolts information in the PMC’s possession. 

For multiple reasons, it’s a good practice to have the property management company share all its records with your HOA board on at least a monthly basis. Such updating leaves HOA volunteers equipped with crucial ain case of any kind of interruption of service, whether a key PMC employee is suddenly unable to do their job or a dispute with the PMC necessitates an unplanned contract termination.

With PayHOA, you control what is yours.

PayHOA is your HOA’s digital record. From unit and owner history to finances to outgoing communications, everything that goes through PayHOA will be available for your perusal at any time. You can access reports as needed to gain insights into the finances of your operation.

Should you decide to move on from PayHOA one day, your HOA retains all its valuable information.

Maintaining Legal Compliance

Third-party companies can only offer guidance.

While a third party company will protect the HOA board from much of the potential legal risk should something come up, that protection is by no means absolute.

PMCs usually only provide advice on how to learn and stay up to date on the current laws for HOAs. Should some significant legal issue come up, your association will need to hire a lawyer.

PayHOA facilitates legal compliance.

Whether you’re self managed or using a management company, it’s in your HOA’s best interest to be familiar with your state’s HOA laws and how to adhere to them. You will also need to hire a professional should an issue arise in either scenario.

Self managed HOA software helps keep your organization compliant. You can use it to store important information and notices so homeowners are aware of the legalities of their living situation. Plus, with everyone looking at the same source, PayHOA helps all parties involved—the HOA board, homeowners, lawyers, and accountants—receive the same materials in the same way.

Adding Value to your Neighborhood

Management companies charge your community for the services they provide.

While they serve many HOAs effectively third-party PMCs can cost homeowners associations thousands of dollars each year through initiation fees, unit fees, and other charges. Homeowners fund this expense with their dues – hundreds of extra dollars per month, depending on the size of your HOA.

The monthly fees may not cover every contingency. Your PMC may very well have to invoice extra for tasks not specified in its contract, such as filing insurance claims, overseeing maintenance contractors, and attending board meetings. This can translate to larger dues for your homeowners.

Invest in your home with PayHOA.

A self managed HOA is made up of residents who volunteer their time and skills to make their community a better place for themselves and their neighbors. Not only will your self managed HOA cost less to run—lowering costs for homeowners—but you’ll have more contact with your neighbors.

With the right empowerment and resources, self managed HOA software can enable HOA volunteer officers to do everything a management company can do. PayHOA offers superior value and services at a fraction of the cost of professional management and lets the face of your HOA be people whom residents already know as neighbors. Start your free 30-day trial today.