HOA Management

I have been on the HOA Board for 10 years. They have asked me to resign and be their HOA management service.
What insurance do I need? I will only manage one.

More importantly, does your state require that you hold a CAM license?

Don't forget you'll need to withhold the employer's contribution from Social Security, Medicare and any other taxes your traditional boss pays on every employee's behalf. Whatever amount you wish or negotiate to be paid, add about 8 to 10% on top of that gross income.

I agree. HOA's should not hire their own members. What if the board decides the employee is not performing up to their expectations? If they terminate that person's employment they still live there and there will be those awkward moments when the former employee shows up at a board meeting.

Worst case was one described here earlier this year where the president fired two employees who were also residents. The two fired employees organized a recall election and removed the other board members.

There is a clause in my HOA's documents that does allow for this to happen. However, that is ONLY IF the HOA decides to disband. If we should disband, then our property/HOA must be turned over to a Property Manager. Which if you get the proper license, bond, and insurance could indeed be you. It's something that should be looked into as most likely one would have to disband the HOA altogether in order for such set up to work.

There was a point in time that was considered for me as the lack of interest and my participation level. Due to many circumstance, it was basically me running the place at times. It would have made it much "easier" for myself and the HOA to have allowed this. However, disbanding the HOA would have been a bad idea in the long run. That being what if I quit or died? The members lose any type of voting rights or serving on the board. I would be getting paid but also then setting the rate of the HOA dues. Which may have been much more considering had to now add salary into the mix. Volunteer labor is free and thus not a factor in HOA's finances.

I would take it as a compliment but consult a lawyer if you do decide to do this. Understand there are consequences and explain those to the others. People may just turn their backs on you once they realize they are now paying you, no voting rights, and most likely no choice on who is participating in the decisions. You basically lose your board and start over with a business with employees...

Thank you all for bringing this up and the many things to consider. Our CC+R allow a Board member to be paid for acting as manager. Would that require the same insurance and would they be considered an employee?