If you’re a part of a planned community, you may wonder if it’s better to have a self-managed HOA vs HOA management. Both options have their own merits and challenges, and the right choice may vary depending on your neighborhood’s needs and goals.

What is a Self-Managed HOA?

When you have a self-managed HOA, the board members and other volunteers oversee everything in your community. This means they will handle all administrative, financial, and operational responsibilities needed to run the neighborhood. This may range from collecting HOA dues to enforcing rules and community maintenance.

Typically, this way of running the HOA works for smaller communities with fewer people. The workload for such communities is more manageable, and usually, the residents are proactive.

What is HOA Management?

On the other hand, HOA management, or more specifically, professional HOA management, involves outsourcing administrative and operational duties to an HOA management company. These firms provide HOA managers with the expertise and resources to do daily operational tasks like accounting and scheduling. 

HOA management is best suited for larger communities or neighborhoods with complex needs. Having a management company helps achieve smoother operations without overwhelming the board members.

Self-Managed HOA vs HOA Management: What to Choose?

As an HOA board member, consider what suits your community best. When deciding, keep in mind the following factors.

Cost Considerations

One of the biggest concerns for many board members is the cost. If you have a self-managed HOA, you significantly lower your community’s expenses since no management professional is paid for their services. Instead, the board members are run by volunteers who provide their time for free. The HOA budget is then entirely allocated to operating expenses and reserves instead.

But keep in mind that self-management is not entirely free. The HOA board will still need to invest in the solutions and software needed for accounting and housekeeping. They may also choose to hire occasional specialist contractors for specific needs. Yes, this is still more affordable for small communities; it may have the opposite effect for larger neighborhoods.

Meanwhile, with professional HOA management, the HOA will need to allocate a regular fee that will be paid to the management company. The cost may vary, depending on the community’s size and the services provided. 

Although having a professional company manage your HOA calls for an additional expense, the association can save money in the long run. With professionals, you can ensure that your HOA reduces costly errors, ensures compliance with the law, and handles tasks correctly. If not, that can lead to HOA fines or disputes. 

Administrative Efficiency

If you have a self-managed HOA, your board will have direct control over all the operations in your community. This helps with faster decision-making and a personalized approach to addressing the concerns of your residents. Board members tend to be invested in the community and are usually more approachable to residents.

However, not all board members have the necessary skills for the complex tasks that the association has to do. Many may not know how to prepare financial statements, understand legal issues, or enforce rules without bias. Here’s where professional management companies enter. They provide management professionals with the skills, experience, and resources to do complex tasks for the HOA. Given their expertise, these professionals can also handle these tasks efficiently and properly. 

Legal and Regulatory Compliance

Other than the daily operations, rule enforcement, and maintenance duties of the HOA board, they also need to ensure that the community adheres to local, state, and federal laws.

When comparing a self-managed HOA vs HOA management regarding legal compliance, your association can benefit from having the latter.

In self-managed HOAs, the board of directors may find this daunting since many may not know how to do so. They must stay up-to-date on legislation that may apply to their community. They can make compliance mistakes if they don’t, resulting in legal disputes and fines. 

Meanwhile, professional HOA management companies have dedicated personnel who are legal and regulatory compliance experts. They must stay informed on relevant HOA laws to ensure your association runs within legal parameters. 

Time and Commitment

Managing a homeowners association consumes a lot of time from every board member on top of their professional and home lives. Tasks like organizing meetings, collecting and accounting for HOA dues, managing vendor relationships, and responding to resident complaints are time-consuming. Yes, this can still be manageable for small communities, but as it grows bigger, the board members may be overwhelmed.

HOA management companies, meanwhile, help lighten the load on the board members by taking on these responsibilities. They will assign dedicated staff members to handle the time-consuming tasks, letting the board members focus on decision-making instead of administrative duties.

Key Considerations for Making the Choice

When deciding between a self-managed HOA vs. HOA management, board members should consider these factors:

1. Size of the Community: A self-managed HOA can be more practical and cost-effective if you have a smaller community with limited needs. Larger and more complex communities usually benefit more from working with professional management companies.
2. Board Member Expertise and Schedules: Not all HOA board members have the relevant skill sets or enough time to run the HOA effectively. Outsourcing may be a better option if the board lacks expertise in areas like accounting, legal compliance, or vendor management.
3. Budget: Self-management will save money upfront, which is good for smaller communities. However, the bigger the community, the higher the potential for costly mistakes. To avoid such cases, consider hiring a professional management company.
4. Community Dynamics: If you want a community where every resident is close, self-management may be the way to go. However, professional management offers a good alternative for communities prone to conflict and disputes or needing impartial enforcement of rules.

Which One is Best for Your HOA?

When deciding between having a self-managed HOA vs HOA management, there is no one-size-fits-all answer. It all depends on the needs and goals of your communities. Those seeking a close-knit community, a self-managed HOA can be a good option .Meanwhile, hiring a professional management company would be more beneficial to larger or more complex communities.

Freedom Community Management provides HOA management services in Florida, including administrative and financial tasks. Call us at 904-490-8191 or contact us online to learn more!

Leading a sustainable HOA community can benefit both residents and the environment. A sustainable approach will help save resources, reduce expenses, and create a healthier living space. When an HOA implements sustainable practices, it can ensure it thrives longer.

What is a Sustainable HOA Community?

A sustainable HOA community uses environmentally friendly practices in every aspect of its operations. The board must make decisions that reduce the community’s environmental footprint to achieve sustainability. These decisions can affect the use of energy, waste management, and the conservation of resources. A sustainable HOA community balances its current needs with those to come.

The Importance of Sustainability in HOAs

Sustainability is crucial for the long-term success of any organization, including HOAs. For one thing, it can lower the operating costs of the community. For example, energy-efficient upgrades and water-saving measures can help reduce utility bills. These things benefit both the HOA and its residents. Plus, the board can reinvest these savings into the community.

Sustainable practices also make the community more attractive to potential homebuyers. More and more people are becoming environmentally conscious. Younger generations, particularly Gen Z, are more keen to track their environmental impact. These values will come into play when they consider homes. A sustainable HOA community can command higher property values and draw in buyers who care about eco-friendly living.

Sustainable Practices in HOA Community

Believe it or not, plenty of strategies can help achieve a sustainable HOA community. While associations need not implement all of these, even just a few can make a difference.

Here are some sustainable living practices in HOA communities.

1. Implement Sustainable Landscaping

Sustainable landscaping is one of the easiest ways for an HOA to reduce its environmental impact. Traditional lawns require a lot of water, pesticides, and fertilizers. Instead, HOAs can opt for drought-tolerant plants and native species better suited to the local climate.

Xeriscaping, for example, cuts down on water consumption and chemical treatments. Another option is installing rain gardens that collect and filter stormwater. These practices save water and create a more visually appealing landscape that thrives naturally.

In some states, laws are already in place to protect the right to use drought-tolerant plants. California is one such state, as per Civil Code Section 4735.

2. Encourage Wildlife Conservation

Protecting local wildlife is another key aspect of a sustainable HOA community. Associations can create green spaces that support biodiversity. They can do this by planting native trees, shrubs, and flowers. The community can also install birdhouses, bat boxes, and pollinator-friendly plants to attract and support wildlife.

Additionally, refraining from using harmful pesticides is essential to wildlife conservation. Chemical treatments can negatively impact the local ecosystem. With organic lawn care, associations can help ensure that local wildlife thrives. Offering educational materials or hosting workshops on wildlife-friendly gardening can also engage residents in conservation efforts.

3. Conserve Water

Water conservation is critical in a sustainable HOA community. Boards can install low-flow fixtures in common areas to reduce water waste. In outdoor spaces, smart irrigation systems can control when and how much water is used. These systems adjust based on weather conditions, thereby preventing overwatering.

Furthermore, the HOA board can encourage residents to use rain barrels to conserve water. They can use these barrels to water plants. Residents should also ensure they fix leaks as soon as possible to avoid wasting water. This, in turn, can save them money on their water bills.

4. Enact “Green” Guidelines for the Community

To maintain sustainability, HOAs should establish “green” guidelines for residents to follow. These guidelines can promote energy conservation, waste reduction, and environmentally friendly practices. For example, the association can encourage residents to turn off lights when not in use, and carpool or use public transportation when possible.

5. Implement Green Building Standards

Energy-efficient building standards are essential for creating a sustainable HOA community. Green building techniques can include using eco-friendly materials, improving insulation, and installing energy-efficient windows and appliances. These practices help reduce energy consumption, lower utility bills, and minimize the community’s overall carbon footprint.

The HOA can opt to install solar panels in common areas. LED lighting in outdoor spaces and common areas is also cost-effective and environmentally friendly. Associations can encourage residents to use the same standards for their own homes, too.

6. Start a Waste Reduction and Recycling Initiative

Waste reduction is a critical part of any sustainable HOA community. Boards can establish a comprehensive recycling program that includes paper, plastic, glass, and electronic waste bins. Providing convenient recycling stations in common areas makes it easier for residents to join in.

7. Invest in Solar

Solar energy is one of the most effective ways for an HOA to become more sustainable. Solar panels can be installed on community buildings or shared spaces to generate renewable energy. This reduces the community’s reliance on fossil fuels. It can also significantly lower energy costs over time.

Moreover, board members can encourage residents to install solar panels in their homes. The benefits of solar energy extend beyond cost savings. It is a clean, renewable source of energy that helps reduce greenhouse gas emissions.

8. Educate Residents

Education is vital for the success of any sustainable HOA community. Hosting workshops, events, or webinars about sustainability topics can increase awareness and engagement. Boards can distribute newsletters or social media to share tips on living a more sustainable lifestyle.

The more residents understand sustainability, the more likely they are to participate in community-wide efforts. A well-educated community will be more committed to eco-friendly practices. This strengthens the overall sustainability of the HOA.

Protecting the Future Through Sustainable Living

A sustainable HOA community benefits everyone, from residents to the environment. By adopting eco-friendly practices, HOAs can reduce costs, enhance property values, and protect the planet. Leading a sustainable HOA is a choice that ensures a better future for all.

Freedom Community Management provides HOA management services in Florida, including assistance with sustainability planning. Call us at 904-490-8191 or contact us online to learn more!

An HOA manager can positively impact your community. A manager possesses the proper training, experience, and tools to ensure smooth operations and successful HOA management. This can certainly prove helpful for a volunteer HOA board.

What Is an HOA Manager?

An HOA manager is a professional manager that an HOA or its board of directors hires to assist with community management. Some states require HOA managers or community managers to carry a license to practice. 

For example, in Florida, most situations require these managers to have a license to work. Managers can obtain a license in the Sunshine State by submitting specific requirements. This includes going through an application process, taking an exam, and receiving proper training.

There are two types of HOA managers: those who work for a management company and those who work independently. An independent HOA manager works as an individual and is hired directly by the association. In contrast, homeowner association management companies can employ managers and assign them to client communities.

What’s the Difference Between a Property Manager and a HOA Manager?

While many people use property manager and HOA manager interchangeably, there is a clear distinction between the two. An HOA manager is a professional who manages community associations, such as HOAs, townhomes, and condominiums. They can sometimes be referred to as community managers or association managers.

Meanwhile, a property manager is a professional who manages rental properties. They answer to landlords or rental property owners and handle things like collecting rent, addressing tenant complaints, and enforcing the lease agreement.

The exact duties of an HOA manager depend heavily on the agreed-upon services highlighted in the management contract. Some communities require full-service management, complete with all the bells and whistles. However, other communities only need select services, such as financial management, administrative work, and remote management.

Top Reasons Why Hiring an HOA Manager Is Beneficial

It is understandable for your HOA board to think twice about hiring a professional manager. After all, managers don’t come free. Apart from the apparent advantages of lessening the board’s workload and giving you more free time, there are plenty of other reasons to hire an HOA manager.

1. They Are Experienced Experts

Professional managers have many years of HOA experience under their belt. They know how to easily manage associations and understand what to do in certain situations. They also know the best practices in the industry.

Trained professionals can also focus on fulfilling their HOA manager responsibilities. Volunteer board members don’t always have the same luxury, as they have other priorities in life. Meanwhile, HOA managers are specifically trained and hired to care for your community.

2. They Are Utmost Professionals

Board members often find it difficult to detach themselves emotionally from the job. When a homeowner comes to them with a problem, board members might let their personal judgments and biases influence their decision. After all, homeowners are more than just their constituents – they’re neighbors.

In comparison, an HOA manager is a neutral third party who can professionally make decisions. Managers have an easier time removing themselves from the situation and looking at things objectively. They won’t think twice about enforcing a rule or collecting a past-due assessment. Professionalism and fairness also prove helpful when resolving disputes.

3. They Help With Administrative Work

An HOA manager typically handles administrative work to keep the community functioning. Tasks include planning board meetings, organizing paperwork, and maintaining the community website. If your association hires a management company, administrative work is usually delegated to a team of back-office staff members.

4. They Enforce the Rules

Enforcing the rules is a vital function of the HOA board. Unfortunately, not all board members have time to accomplish this in a procedurally correct manner. This is where an HOA manager comes in handy.

An HOA manager can inspect violations frequently, send violation notices, and plan disciplinary hearings. The HOA board can then decide on the penalty, which the manager can help carry out.

5. They Make Collections and Finances a Breeze

The HOA manager can assist the board with budget preparation and tracking. This keeps the association in good financial standing. The manager can also help collect dues, offering several payment methods. This gives homeowners more options, thereby minimizing late or missed payments.

If a homeowner does default on their fees, the community manager can also enforce the HOA’s collection policy. This can include charging late fees, temporarily suspending owner privileges, taking legal action, attaching a lien, and even initiating foreclosure proceedings.

In addition to collections, the association manager can also help with accounting and financial management. Tasks include preparing financial statements, maintaining the books, assisting with tax preparation, and planning the reserves.

6. They Handle Maintenance and Repairs

Every HOA community needs proper and regular maintenance to ensure functionality, maintain curb appeal, and preserve property values. If your HOA board doesn’t have the time and resources for this, an HOA manager is the key to your problems.

Managers can schedule routine maintenance and facilitate repairs. They can hire the right vendors to complete the job and monitor progress to ensure quality. If your HOA hires a management company, the company may have in-house maintenance personnel for this type of work.

7. They Liaise With Vendors

Homeowners associations rely on vendors for many things, including maintenance, cleaning, legal work, and insurance. Coordinating and communicating with these vendors can be a handful. With a community manager, though, your board can delegate the job to a trained professional.

In addition to coordinating with vendors, managers can help with the vendor-hiring process. This includes sending out RFPs, screening potential applicants, negotiating vendor contracts, and monitoring performance.

8. They Are Communicators

Communication is a pillar of success, especially when managing a community. Board members might need more time or energy to ensure good communication. However, an HOA manager can step in to fill this gap.

Managers can communicate with homeowners and send notices as necessary. They can also respond to resident concerns and address their complaints. Beyond that, managers can help with board communications, even attending their board meetings.

9. They Can Provide Legal Help

Board members should seek legal assistance from a lawyer. However, managers can typically provide sound advice for minor issues.

Community managers are well-versed in the federal, state, and local laws that may affect HOAs. It is also part of their job to keep up with legislative changes. This allows them to ensure that your association complies with all regulations. They can also help with other legal aspects, such as filing reports with the Secretary of State, recording liens, and amending governing documents.

Worth the Money

As you can see, every community association can benefit significantly from having an HOA manager. While it does cost money to hire one, it is undoubtedly well worth the price, considering what you get in return.

This is where Freedom Community Management comes in. Call us today at 904-490-8191 or contact us online to learn more about what we can do for you!