4 Risks Of Being A Homeowners Association Without A Manager

At some point, a majority of HOA boards have considered running the entire homeowners association on their own.  While this option may end up being a success, it’s important to know that it comes with many inherent risks.  Before you decide to self manage an HOA, know these 4 risks that come with running a homeowners association without a manager.

 

 

With the absence of a qualified manager, the homeowners association could break certain laws and not realize it.  HOA’s have to file legal paperwork which includes disclosures and reserve updates.  They must also keep up with changing laws and carry out proper accounting practices.  Without a professional on board, an HOA might accidentally overlook some legal obligations that could end up in a lawsuit against the association.

 

Even though running an HOA requires a great deal of time, there are still people who think they can run it as a part-time job.  HOA managers have to maintain the community website, hold meetings, address members’ concerns, and create newsletters.  Often, those who volunteer to manage the homeowners association struggle with the responsibilities which leads to an inefficient association.

 

Without a professional HOA manager, you can end up with influential board members who make unilateral decisions that may be against the interests of homeowners.  Board members might decide to ignore issues raised on the community website, thus failing to stay accountable to members in the community.  When that happens, it could lead to a lack of accountability and other issues in the homeowners association.

 

The absence of a manager could leave some homeowners open to being unjustly fined without any avenue for recourse.  A manager can serve as a neutral party in the event that there is a dispute between a homeowner and the board.  In most cases, HOA’s are better off with a manager in place as they know the laws and handle all matters in a professional manner.