Management

Started by LaverneB • 8 replies • 929 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

LaverneB (Florida)
Posts: 79

Posted:

We are a self managed community of 216 homes. We have been for 35 years. New board wants to get management in here. Does the homeowners have any say in this. Our HOA dues will go up. I thought the residents would have to vote on this, the board said no they can do anything they want..

MelissaP1 (Alabama)
Posts: 13,836

Posted:

They aren't hiring "management". They are hiring a Management company to do some of work of the HOA. Which sometimes does get a bit "fuzzy" relationship between the HOA board and MC. The Board may indeed decide to hire a MC. It would be like hiring any other contractor.

Basically it sounds like your new board doesn't really want the hassle of running the HOA in it's every day operations. They want to contract that out to a company to do it. Doesn't mean a bad thing. It's extremely time consuming and frustrating to self manage a HOA. Especially if you don't know what your doing or what a HOA is. An MC in the right context can really help.

Yes, you the owners will have to increase your dues to pay for this. However, is it more comfortable to have an Management company or just neighbors handling the business?

Former HOA President

AugustinD
Posts: 5,144

Posted:

Quote:

Posted By LaverneB on 03/25/2018 9:56 AM
We are a self managed community of 216 homes. We have been for 35 years. New board wants to get management in here. Does the homeowners have any say in this. Our HOA dues will go up. I thought the residents would have to vote on this, the board said no they can do anything they want..

I recommend checking your HOA's Declaration and Bylaws. For the three HOAs in which I have lived, either the Declaration or the Bylaws gave the Board the option to hire a property manager or business manager.

On the positive side, hiring outside help might take the load off some of the volunteer directors, hence making being a board member more attractive. At this point in my 20+ years of HOA experience, I think even directors should be paid some nominal amount.

GenoS (Florida)
Posts: 4,276

Posted:

I agree with what Melissa and AugustinD said. My HOA has been self-managed, badly, for over 25 years and hiring a MC may be in our near future. Last year one of the older homeowners proposed that we amend our CC&Rs to allow the homeowners to vote on any board recommendation to hire a MC. If owners feel that strongly about not hiring a MC then their remedy is to run for the board and vote against it and/or get their like-minded neighbors to do the same. Of course that proposal was made by an owner who has no interest in being on the board and the proposal didn't get too far.

Our documents say nothing about capping or limiting assessment increases. If your HOA documents don't impose any caps or limits on annual increases then the board of directors can pretty much do whatever it wants in a Florida FS 720 Homeowners Association.

It's sad to say, but the fact is too many people move into communities and expect that nothing will ever change. The truth of the matter is that things can and do change, and the day may come (for all of us) when we realistically can't afford to live in our homes anymore.

DouglasK1 (Florida)
Posts: 2,046

Posted:

Quote:

The board can't "do anything they want", they have to act within the bounds of the governing documents. As the other posters have noted that would commonly include the ability to hire a management company to assist them with the association operations, but it really depends on what your docs say, not what most docs say. Unless your governing docs limit what contracts the board may enter into, they probably have that ability. Also see if yours limit how much the board can raise dues in a single year, some do, some don't.

Escaped former treasurer and director of a self managed association.

LetA (Nevada)
Posts: 2,679

Posted:

What specific aspect of managing the HOA is the BOD most concerned with? If it is book keeping, simply hire an accounting firm.

216 homes, I am going to ballpark it that hiring a management HOA company is going to raise your monthly dues to $10-$12 per month compared
to $2-$4 for a bookkeeper.

SueW6 (Michigan)
Posts: 814

Posted:

Generally, the Board has powers to enter into contracts and conduct needed business of the corporation, without the vote of the entire association. That's the job of the Board.

Just the bookkeeping for 216 homes is quite a task do - not a volunteer job.

Our HOA paid the treasurer do this, and approved overtime hours too, for 250 homes. But an outside billing company might do the trick.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

I agree the BOD has the authority to hire a Management Company. Now how they are going to pay for such might be an issue.

KerryL1 (California)
Posts: 14,550

Posted:

Staying with JohnC's point, yur your governing docs might limit how much you cps raise dues in a year. Your state statutes might limit that too.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here