Self Defense

John,

If I were in your situation, I would definitely consider running for the board to provide continuity during transition and to help new directors become acquainted with what it means to be on an HOA board.

As to whether to hire a management company or be self-managed, that's a more difficult question to answer. My community consists of about 90 single-family homes and we have a management company. I think a lot depends on how much work is involved in the day-to-day management activities of the community. Some of the pros to having a management company include: 1) Knowledge of HOA requirements and law, 2) Contacts for HOA lawyers, insurance companies, contractors to do landscaping, etc., 3) Someone to collect dues, provide bookkeeping services, pay invoices (but do NOT give them sole access to bank accounts or the authority to sign checks), 4) Can be a registered agent for the receipt of legal notices (a homeowner can't do this and go on vacation), 5) A place to store association records in an off-site location accessible to all homeowners during normal business hours, 6) Isolation of the board from having to deal with daily problems, issues, violation notices, etc., 7) Some MCs will provide 24-hour, 365-day on-call emergency service.

Thanks all.

Nancy

I am of the opposite thinking in that we might need a property manager during the transition then after all the dust settles we cut back to just a bookkeeping type service.

Allow me to explain why. We have a great relationship with out declarant (Ken). All owners dealt closely with Ken during the sale and building. When questions arise, people turn to him. They defer to him. He is well liked and respected. He has done things to placate folks that I am not sure a BOD might do.

Thus, I am not comfortable that all are ready to accept that an elected BOD will be in charge, not Ken. Kind of like who the heck are you all even when we all voted you in. I do not see any "cracking" down to be done here but yet dear old Ken will no longer be in charge. I hate to say it but that is why I think we might need a duty "whipping boy" ala manager (part time) until folks accept/understnd who runs this place.....they do.

In summary, I do think we can easily be self managed but not sure it is best from the get go.

Advice appreciated.

JohnC46,

From reading your posts for awhile, you seem to have a good grasp of what Homeowner Associations are all about, plus you seem to have a good understanding of “your Documents” and of the South Carolina statutes that apply.

It seems that many Associations rely on Management Companies, and/or the person assigned, to interpret “the applicable documents” for them, because no one on the Board “seems to know”.

BruceF has posted a good list of the pros. And, for the “real big” Associations, there is probably no alternative.

For what it is worth, we are self managed (Condominium, about your size but a bit smaller) and have been from the start.

Yes, it is “work” being a Director of a self managed Association, but certainly doable even for a Condominium Association with common area, amenities, roads and buildings, etc, to maintain.

And, we have always been fortunate in having a resident Owner, who besides being Treasurer also “keeps the books” and receives all monthly fees, pays the bills, etc, etc. But, I do know of associations, that are self managed, except they “farm out” keeping the books to a local Bookkeeping, Accounting firm, and that works well for them.

It seems as though you, assuming you remain a Director, and a couple of others, should be able to negotiate any and all services needed. And then be able to provide the necessary oversight.

Referring to the list of Management Company tasks that BruceF posted, yes, if self managed you will need to do those tasks.

Re Task 5: “A place to store association records in an off-site location accessible to all homeowners during normal business hours.” For us this is “the” one thing that worries me the most, and which I am working on to improve (currently we have on site records, and too many paper records and/or computer records not adequately backed-up).

JohnC, from reading your posts, you seem to have the talent to explain, justify, teach, and “reading between the lines” you also seem to have “applicable life experience”.

So I would say “go for it” – try to stay on the Board, and start out “self managed”.

A question(s) – do you anticipate that those Directors elected to serve with you, will share your ideas, ideals, as well as being contributing members? What is your confidence level for being re-elected? And is it something that you want to do? I do not think you have said – how many members will the new HOA Board have?

You just posted about possibly needing a “manager” to act as “a Ken”. To me that would be taking a risk. That is, unless you know of, and are sure you can find a “Ken type” person manager.

Since you have interacted with “Ken” have you not learned from him how to interact with the other Owners?

Granted, being the "whipping boy" is perhaps the “least fun”, but as with many things, as time goes on, it becomes easier, particularly if you “know your documents” and know how to explain the “why”.

Ellie..

You say ask:

A question(s) – do you anticipate that those Directors elected to serve with you, will share your ideas, ideals, as well as being contributing members?

I do not know who will run but presently there is one fellow advisory BOD member. He is a primary school teacher and his attitude is I am older and smarter then you are and you will be punished for violating the rules. Works in the 3rd grade but not here, so we have already locked horns. Another is afraid to decide anything without a legal opinion.

What is your confidence level for being re-elected?

We are presently a declarant appointed BOD so not a re-eletion, but as a former marketing/sales type, I know how to market/sell myself to get elected if iI want to.

And is it something that you want to do?

I am not sure. If I knew all would be well, no I would not run. Thus my asking for advice

I do not think you have said – how many members will the new HOA Board have?

Covenants say 3 to 5 and one thing that must be established.

You just posted about possibly needing a “manager” to act as “a Ken”. To me that would be taking a risk. That is, unless you know of, and are sure you can find a “Ken type” person manager.

Not sure we need a Ken type. Not that we need a crack down but he is selling units so he is a bit more loosey goosey then I might be. We do need someone a bit tougher then Ken, but as he would be hired by and work for the BOD then the BOD has control in their overall direction.

Since you have interacted with “Ken” have you not learned from him how to interact with the other Owners?

As a former marketing/sales person I know and respect what he is doing and well know how to do it. I am now more the after explaining it politely and several times, if you do not understand it by now, it is not my issue. It is your issue so take it or leave it. I am not going to sell/explain it to you any longer.

Granted, being the "whipping boy" is perhaps the “least fun”, but as with many things, as time goes on, it becomes easier, particularly if you “know your documents” and know how to explain the “why”.

I am talking about hiring a professional whipping boy...not becoming one myself...unless Mel has the boots and whip...then....maybe..but just maybe....and turn about is fair play......LOL

Thanks.

run for the board, and then use your first term to set the example for future boards on how to run an HOA. Hold effective, open meetings. Publish frequent, open communications. Give good, open budgets, hold open, fair elections.

Start the HOA on the right path, it's far easier than coming in a couple terms later, and trying to stop the runaway train.