Self-managed HOA vs management company: what each costs and does
A management company costs a 100-home HOA roughly $12,000 to $24,000 a year at the $10 to $20 per home a month that published rates show, plus resale and setup fees. Self-managing costs the board's time and software, from $399 to about $3,300 a year. Between 30% and 40% of US community associations self-manage, according to the Foundation for Community Association Research.
Kahoa makes software for self-managed boards, so we have a side. Every figure here links to a source outside Kahoa.
How much does each cost?
| Cost | Management company | Self-managed |
|---|---|---|
| Base fee, 100 homes | $1,000–$2,000/mo | $33–$275/mo in software |
| Billing and collection only | From $10/home/mo, $350 minimum | Included in HOA software |
| Full service, planned community | $15–$20/home/mo, $2,500 minimum | Board volunteers |
| Resale certificate | $125–$375, paid by the seller | Board prepares it |
| New account setup | $265, one Texas filing | None |
Who does the work?
| Job | Management company | Self-managed board |
|---|---|---|
| Collect dues and chase late payers | Manager | Treasurer, with software |
| Pay bills | Manager | Treasurer |
| Monthly financial statements | Manager | Treasurer, with software |
| Meetings and notices | Manager coordinates | Secretary |
| Vendors and repairs | Manager | Board |
| Budget, reserves, rules | Board decides | Board decides |
| Monthly review of the books | Board, still | Board |
How do you leave a management company?
5 steps- 01Read the termination clause
Find the notice period and whether the board can end the contract without cause. Many contracts allow 30 to 90 days' written notice.
- 02Vote and send written notice
Vote in an open board meeting, then send notice the way the contract requires, with the end date.
- 03Request the records
Ask in writing for every record: ledgers, bank statements, owner files, contracts and minutes. Washington gives managers 5 business days for electronic records; Florida gives 20 business days.
- 04Take over the bank and the books
Move signers on the association's accounts, connect the bank to the new software, and load owners and opening balances.
- 05Collect the next dues yourselves
Send homeowners the new payment link before the manager's last billing cycle ends.
A volunteer board can run it
- Someone on the board will keep the books monthly.
- The community is small or mid-size, with simple amenities.
- Owners would rather save the fee than buy the time.
The work outgrows volunteers
- The community has staff, a pool or a gate to run daily.
- Collections or legal disputes are heavy.
- No board member wants to be treasurer.
What else do boards ask about self-managing?
How much does an HOA management company cost?
What percentage of HOAs are self-managed?
Is the board still responsible if it hires a manager?
How fast must a management company hand over records?
Run the books yourselves for $50 a month
Thirty days, no card. Connect the bank and Kahoa fills in two years of history.