Managment Companies. Yes or NO?

For perspective, in my current HOA and last HOA, the cost of the management (strictly the administrators; excluding laborers and skilled trades who worked on the grounds) was about 15% of the annual budget. How does your HOA compare?

We are 65 standalone homes, self managed. As Tim says, self management puts a heavier workload on the directors, not only writing checks and collecting dues, but managing vendors, responding to homeowner questions/complaints/concerns, covenant enforcement, other issues that arise periodically, and understanding and keeping up with local and state law changes. In our case, and probably Tim's from the looks of it, one director typically carries the heaviest load and is most subject to burnout, but even the ones who do the minimum can be affected. I'm treasurer for my association, and while I don't spend 20-30 hours a month on association stuff, I probably spend 10-20 so that's several hours a week on top of working full time, doing a little side work when I have time, being a spouse/parent, and trying to get some exercise in occasionally. Not complaining, but I think owners need to be realistic about what they can expect from volunteer neighbors before making a big push for self management, especially if the ones making the push are not on the board and not willing to run for it.

Our last treasurer burned out after two years because (kind hearted soul that she is), she was trying to do too much single-handedly. Self management can work, but most associations use an MC.

This morning a neighbor called me and asked me if we really need to pay $12K a year to the MC for writing about 16-18 checks and collecting membership dues, all of which are paid only once a year (Feb-Mar timeframe)
The MC also does a monthly drive by and cites homeowners for yard/maintenance and any non compliance issues of course.

Besides serving as neighbor, just what role if any does this individual currently serve in regards to managing your property? If my math is correct the monthly cost for an MC at your current rate for 189 homes comes to about $5 per month. Now more than likely this list of limited duties the neighbor believes covers all your MC does leaves a few things unaccounted for. Is the neighbor willing to step up and serve as a board member?mormare they only willing to suggest you self manage and ask those currently serving to do even more.

Some have suggested self management is an option. Do you have volunteers willing to serve as board members?mwould they now be willing to do even more? Are the capable of handling the day to day operations of the property? Do they have the knowledge, contracts, expierences, to ensure everything needing to get done gets done? Yeah, we can push to save each owner $5 per month and ask as small group to do even more. I just have to wonder what
actual understanding of what it takes to manage a property does this neighbor possess. Or is it simply their solution to save what they perceive as a waste of community funds.

I have served on our board for 29 years. In that time I have some understanding of how things get done and who does them. I would never consider going self-managed. The services our MC provides are time consuming and invaluable. Not the work load for unpaid volunteers who stand to save the other owners $5 per month out of pocket as a result.

When a maintenance issue arises at 3:00 AM who will be responding? Who is available 24x7 to take calls? Who does the banking, deposits, bill paying, record keeping, insurance, taxes, service contracts, accounting, etc. This neighbor or YOU!

Another good way to see what your MC does, or is suppose to is read your HOA's contract with the MC.

Welcome, Edward. We have quite a few posters from FL who'll benefit from your experience, I'm sure.

Here in CA, too, there's a lot of legislation as in FL for a Board to understand and a good MC will keep the board up to date on these matters.