Why do HOAs here go though a management company? (sale, HOA)

[uswith6]

It seems some have mentioned having to make cutbacks, just wondering why go through a firm, the residents themselves can't do it? They did where we last lived BUT they did not necessarily have a pool etc.

[BLUEDIAMOND64]

They could do it, the residents. I have been in several HOA's in different states. It makes it easier for them if there is fine, it's not neighbor against neighbor. The ironic part is that it is usually a neighbor calling the Management Company to complain. HOA's could save so much money doing it themselves for sure!! You could still do it if you have a pool. The only necessity to me personally is to retain legal counsel for the HOA.

[Suncc49]

Originally Posted by BLUEDIAMOND64

They could do it, the residents. I have been in several HOA's in different states. It makes it easier for them if there is fine, it's not neighbor against neighbor. The ironic part is that it is usually a neighbor calling the Management Company to complain. HOA's could save so much money doing it themselves for sure!! You could still do it if you have a pool. The only necessity to me personally is to retain legal counsel for the HOA.

HOA's require certain fiduciary activities that you might not want to put into the hands of a neighbor who volunteers. It is too tempting to touch the "kitty"....

If there is a monthly amount due, the recording of transactions / payment of bills can all take some time. Anyone from an HOA Board cannot be compensated, so they would have to put in part time hours for free.

There are management companies with "self management" software that handle accounting write-up. That is a good solution.

[krokus]

Originally Posted by Suncc49

HOA's require certain fiduciary activities that you might not want to put into the hands of a neighbor who volunteers. It is too tempting to touch the "kitty"....

If there is a monthly amount due, the recording of transactions / payment of bills can all take some time. Anyone from an HOA Board cannot be compensated, so they would have to put in part time hours for free.

There are management companies with "self management" software that handle accounting write-up. That is a good solution.

You are absolutely correct. On top of what you ahve said, there are many people who just do not have the time to devote to running and HOA regardless of the duties being paid or unpaid.

On solution is to have a Residents Association that does the day to day stuff like yard sale management and pool parties but there is alo an HOA company that manages the accounts (for a fee, naturally...) and deals with the maintanence of common areas and the cont
ractors that do this work. These contractors are far more likely to listen to a manager who runs HOAs for a living than an unpaid volunteer. Sad but true.