A home owner’s association is an entity that governs a particular subdivision. Some people like to move into these areas because they have a virtual guarantee they will not have to deal with problem neighbors. Everyone has to live by specific rules, and that’s an appealing concept.

You can form an HOA board and handle all the related business yourself. However, a time might arrive when you want to hire an outside agency to do it for you. They can utilize a software suite that can deal with many issues, so you and the rest of the board no longer have to.

Below, you’ll find some reasons why you might want to go from HOA self-management to someone else doing it for you.

Communal Rivalries

It’s hard for us to overemphasize the worth of an HOA management company sometimes. They can step in if you have board members who can’t seem to get along. They might squabble because:

  • You have one of them who won’t follow the rules
  • One of them might have jealous feelings toward the other

Once these rivalries start, they can continue for years, festering and becoming ever more bitter and heated. If you have two feuding neighbors who are also HOA board members, they might yell at each other at every meeting, and you’ll never be able to accomplish anything.

Passing off HOA control can fix that. The new company can handle disputes, so you don’t have to. One party wins, and the other will lose, so someone will be unhappy, but you no longer have to hear about it.

The Community Wants It That Way

Sometimes, you’ll have a community where everyone is more than ready to bring in an HOA management company. That might be because:

  • They have had problems with trying to operate a self-managed HOA.
  • They have tired of all the headaches, and they’re willing to pay someone else to handle it.

Maybe the community realizes that HOA self-management is cheaper, but it takes up too much time. Everyone probably has jobs that keep them busy, and they likely don’t want one more thing with which they have to deal.

Also, home value is an issue. Community members might realize that when the time comes to sell, certain buyers won’t want to move into a self-managed HOA subdivision. They will not want that responsibility, so they will look elsewhere.

You’ll know if you’ve reached this point when everyone is overwhelmingly asking about bringing in an outside management company.

You Don’t Have Enough Volunteers

Some HOAs, if you’re doing self-management, require everyone to sit on the board. What’s more common, though, is for there to be resident volunteers. Some people will want to involve themselves actively, while others will be fine sitting on the sidelines and simply paying their dues when the time comes.

However, you might have a situation where you’re not getting enough people who want to sit on the board. Maybe everyone has better things to do, and they’d prefer to have someone else handle it.

If you don’t have enough community involvement, getting a management company may be your only choice. If you only have a couple of people trying to handle what suddenly seems like a monumental task, bringing in outside help can be a real lifesaver.

The Community is Too Large

You might also have a growing subdivision. Maybe you had fifty houses at first, and you could handle their needs yourselves.

Now, you have an unprecedented expansion happening. Your fifty houses will swell to more than twice that number over a three-year period. If that happens, you may not feel like you can deal with all the HOA needs by yourselves anymore.

A bigger community has different needs. If you were volunteer-reliant before, everyone might start to shy away because they know they’re now looking at a daunting task for which they receive no pay.

Large communities always have more people moving in and out. They need various services, and regardless of how efficient your system is, this expansion will bury a small volunteer force. Hiring a management company is probably the only logical way to move forward.

HOA management companies exist for these reasons and others. What’s nice about them is that they do this professionally, so they can probably handle any concerns that might arise because they’ve seen it all before. It’s more than likely that once you hire one, you’ll have higher dues, but things should run smoother.