The Pros and Cons of a Self Managed HOA

If you are operating or considering switching to a self managed HOA, you’re far from alone.

A recent Community Associations Institute (CAI) found that 30% to 40% of community associations are self managed. Depending on the size and complexity of your neighborhood or condo community, self management can serve as a very realistic option, potentially saving you tens of thousands of dollars annually in third-party management fees.

Effectively running a self managed HOA requires a multi-faceted, streamlined, and optimized approach. Community managers are tasked with juggling a plethora of responsibilities to keep their neighborhoods thriving, including:

•  Budgeting and account management
• Collecting dues, special assessments, and other fines or fees
• Hiring and paying outside vendors
• Producing newsletters, announcements, and other communications
• Code maintenance and enforcement
• Fielding complaints and feedback
• Maintaining common areas
• Overseeing an architectural review process
• Setting and maintaining a community calendar
• Keeping compliance in the forefront of decision making

Keeping track of these tasks individually—in other words, the “DIY approach”—works for some volunteer board members who prefer their own system of doing things. But for many volunteer boards with full-time jobs and growing families, the DIY method isn’t realistic. 

HOA management software offers an alternative all-in-one system to automate and streamline many of the day-to-day needs of a self managed HOA.

Board members can benefit from considering the pros and cons of each approach, before deciding which management style is right for them.

Pros of a DIY HOA Self Management

You may find the direct cost benefit enticing when it comes to a do-it-yourself style approach to management. While HOA software comes at a cost versus more basic management systems, it also provides an all-in-one, dynamic management system at a vast savings over hiring a traditional third-party management firm, including annual fees, which can add up to hundreds of dollars per unit or home per month, as well as other related expenses.

Hands-on involvement is always a plus for community managers. More direct control over tasks and systems means more room for innovation and more of a human approach to problem-solving.

Customization may help volunteers adapt more easily to the task at hand, depending on their management style, as well as to adapt processes according to their community’s unique characteristics and bylaws.

Transparency can be a bonus of the DIY approach, with the right consistency and well-kept records, though this requires a steadfast approach and constant oversight, whether you’re using spreadsheets, paper ledgers, stand-alone financial management software, or even manually producing different types of financial reports.

A personal touch can allow volunteers to bring their own approach and style to HOA management. While most jobs will be standardized and accomplished according to strict bylaws, CC&Rs, and legal compliance, volunteers intimate with their communities will know how to apply the right solution at the right time to benefit their HOA.

Cons of DIY HOA Self Management

DIY for self managed HOAs comes with certain disadvantages as well, which can lead to inefficiencies, errors, and too much time spent switching between separate systems and documents.

A DIY approach takes time and effort. Manually tracking finances, dues and late fees, requests, violations, and other daily tasks means constantly checking and double-checking your systems and documentation.

Avoiding conflict is harder when you’re doing it yourself. With a self managed HOA, there’s no one to pass the buck to when it comes to disputes with residents. The last thing you want is to be accused of playing favorites or having a neighborhood standoff over garbage cans or chickens.

HOA management software helps you manage violations and conflicts fairly and easily. Instead of trying to handle these conflicts on your own, which can lead to biases and “he said, she said” scenarios, use PayHOA’s powerful Automated Violation Management tools to ensure a uniform and consistent approach. PayHOA software tracks all communications with homeowners and allows you to automate violations with custom templates, fines, and reporting to committee and board members.

DIY makes HOA management feel like a full-time job. If you’re constantly working to keep your systems in check, maintain transparency, and meet residents’ needs, all while balancing the budget and maintaining legal compliance, you’ve turned a volunteer role into a full-time job—a job most volunteers don’t have the time or patience to keep up with.

Inconsistencies lead to mistakes—which can cause legal and financial risk. The last thing you want is for your association to face litigation due to noncompliance issues or financial mismanagement, or to make a costly oversight in your accounting.

Don’t Lose Control: Get Help with Your Self Managed HOA

You don’t have to choose between DIY and hiring a costly third-party management firm.

Software designed specifically for self managed HOAs can help you organize your homeowners’ association, streamline your processes, and give your community transparency into the association rules, processes, and even finances. 

PayHOA software provides an all-in-one digital management hub with features such as powerful, automated accounting and budgeting tools and templates, bulk communication and dues invoicing and collections, violations tracking, vendor management, secure file storage and sharing, and more.

PayHOA offers advantages including:

• Cost savings. PayHOA is affordable, offering huge savings versus hiring a management firm. You can try PayHOA free for 30 days to experience the benefits to your community.
• Hands-on Involvement. PayHOA gives you the tools to run your HOA, but you still make the decisions. You set the level of automation and use of templates to accentuate and shore up your decision-making while freeing you up to stay involved in the tasks that matter most to your community.
• Customization. You know what works and what doesn’t for your neighborhood. With PayHOA, you can customize your member portals, website, and how you use the tools to grow your community.
• Transparency. With a suite of financial and communications tools, your neighbors will feel better knowing their HOA’s finances are in order. Produce multiple important financial reports, automatically sync your finances with your banking transactions, and access a full record of messages with residents.
• A Personal Touch. You still interface with your community. PayHOA simply gives you the communication tools you need to do a better job. Send bulk emails, texts, or phone messages, mass mail newsletters, and even keep a digital community calendar that residents can access via their resident portals through the PayHOA app.

Running a self managed HOA doesn’t have to mean “doing it yourself.” And you don’t have to break the bank to hire someone else to manage your association. HOA software like PayHOA gives you the best of both worlds, with digital tools to automate and streamline finances and other daily management tasks while also being highly customizable and putting you in the driver’s seat to make the right decisions for your HOA.

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As an HOA manager, PayHOA offers you an all-in-one software platform to replace all those fragmented tools so accounting, communications, payments, documents, violations, and owner requests can all live in one place. PayHOA is the single portal where you can connect directly with the needs of your homeowners. Your residents can use PayHOA to make online payments, view their payment history and important documents, submit requests, and access important updates, streamlining management for your whole -community. Try a 30-day free trial today or contact us at info@payhoa.com to learn more.