How to Run an HOA without a Management Company

Does your HOA need a professional management company to function smoothly? Not necessarily. Many communities successfully manage themselves, saving thousands of dollars in the process.

It does take some planning and organization, but benefits like lower costs and stronger community connections may make it worth doing. Here’s how to make self-management work for your HOA.

Clearly define roles and responsibilities

A surprisingly common reason for HOA boards to fail is because nobody really knows who’s supposed to do what. When you’re self-managing, any confusion on this front can get expensive fast. Understanding the specific offices and responsibilities of an HOA board is your first step to success. You’ll need a president to lead meetings, a treasurer to manage money, and a secretary to handle paperwork.

It’s also important to plan for turnover—otherwise your HOA’s knowledge walks out the door when board members’ terms end. Create a proper handoff system with written job descriptions, organized files, and overlap time so outgoing members can train their replacements. For treasurers especially, the proper training and resources can make the difference between financial success and costly errors.

Stay on top of finances and record keeping

A lot of HOA board members find financial management intimidating, but it’s not as complicated as it may seem at first.

Start with a realistic budget based on what you actually spent last year (not what you hoped to spend). 

Next, set up a system to collect dues consistently. Many banks offer automatic payment options for recurring transactions, and online platforms like PayPal or Zelle can handle regular transfers. Automated systems can save you the headache of having to chase down late payments.

Keep detailed records and copies of all receipts and invoices—you’ll be glad you did when it’s time to file your HOA’s annual tax return. 

Get your governing documents in order

Your CC&Rs, bylaws, and rules aren’t just legal formalities, they’re your roadmap for handling everything from architectural changes to neighbor disputes. 

Think of your CC&Rs (Covenants, Conditions and Restrictions) as your constitution, laying out the big-picture rules. Your bylaws are like an operating manual, explaining the process and procedures for how things get done. Your rules govern the practical day-to-day aspects of your HOA. When these documents are outdated or confusing, every decision has the potential to become an exhausting debate. Make sure you have all the documents your HOA needs and keep them up to date.

Communicate, communicate, communicate

Good communication goes a long way in preventing HOA drama. When homeowners feel informed and heard, they’re less likely to show up at board meetings upset about decisions they didn’t see coming. 

Send regular updates about what the board is doing, what projects are planned, and how the finances look. Go the extra mile to make your required meetings useful by publishing agendas ahead of time, taking thorough notes, and sharing those notes promptly afterward. Be sure people have an easy way to reach the board with questions and concerns.

Handling rule violations

Even the most harmonious communities occasionally need to deal with rule violations. The key is having a fair, consistent process.

When an incident occurs, provide a written violation notice that clearly explains the problem and give the homeowners a chance to respond. Document everything, follow your governing documents, and most importantly, enforce rules consistently.   

Know when to get help

Self-managed doesn’t necessarily mean doing everything yourself. Sometimes bringing in a professional actually saves money in the long run.

Build relationships with an HOA attorney for legal questions, an accountant for advanced tax help, and contractors for work that requires licenses or special expertise. Budget for professional help, even if you don’t think you’ll need it. Having money set aside means you can get expert advice when problems arise, instead of making expensive mistakes because you were trying to save a few hundred dollars.

It’s also worth mentioning that as a self-managed HOA, you’ll have access to a resource that a management company doesn’t: your neighbors’ professional skills and experience. Don’t be afraid to tap into your community—you might be surprised who’s willing to help.

Setting your HOA up for success

As you move forward with self-managing your HOA, remember that long-term success doesn’t rely on specific people or board members. It comes down to the systems you put in place.

When it comes to managing your HOA’s finances and contacts, you’ll want to strike a balance between readily available tools like spreadsheets—which can leave you vulnerable—and complicated tools like Quickbooks, that are overkill and cumbersome. With MoneyMinder, you get a simple, HOA-specific solution designed to make your role easier. From dues and expenses to managing budgets, storing documents, tracking compliance and keeping your board in sync, MoneyMinder has everything you need to stay organized and in control—without a degree in accounting.

Learn more and start your free 30-day trial of MoneyMinder for HOAs.