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ShriR
Posts: 1
Posted:
I’m based in North Carolina and part of a community with about 150 homes. We recently transitioned from a builder-controlled HOA to a homeowner-led board, and I was elected to serve on the board. Our community has been under development for the past 3–4 years, during which the builder worked with multiple property management (PM) companies. The current PM company has been with us for about a year.

Since taking over, we attended an orientation conducted by the PM company, where they walked us through our roles and financials. We currently operate under our CCRs but do not have separate ARC/ACC guidelines. The PM company conducts biweekly drive-throughs and sends violation notices, but we do not currently impose fines for violations.

We’re still getting a handle on decision-making and governance, and we’re looking for advice on a few key challenges:

--- Landscaping Contract Renewal---

Our landscaping contract is up for renewal, and we requested the PM company to obtain quotes from other vendors to compare pricing and services. However, we haven’t received any quotes yet, leaving us in a position where we feel forced to renew the existing contract without fully exploring alternatives. Has anyone else dealt with this, and how did you ensure transparency in contract renewals?

--- PM Company Fees & Structure---

Based on our contract, the PM company charges about $6.25 per house and provides general management services, financial management, vendor oversight, visual inspections, and communications. They also charge an annual fee for their mobile app.

A significant additional cost comes from postal services, which average $600–$900 per month. This includes, homeowners are charged for violation letters, but general board communications (about 1–2 letters per month). Anything out of scope is charged a consultant fee ranging from $50-$100, depending on service. How does your HOA's PM fee structure compare? Any recommendations for reducing communication costs?

--- Exploring New PM Companies---

Are board members typically allowed to obtain quotes from other PM companies independently, or does this usually go through the existing PM? What’s the best way to compare services and pricing from different companies?

---Violation Fines & ARC/ACC Guidelines---
Currently, we do not impose fines for violations, but the PM company is recommending we start. Since we don’t have a separate ARC/ACC document beyond the CCRs, we’re unsure how to structure violations and associated fines.

I anticipate pushback from homeowners if fines are introduced, as it may feel like we are penalizing them unfairly. However, I see it as a way to enforce upkeep and improve the community. How have other HOAs approached this, and what guidelines should we consider when implementing fines?

Improving Communication

Our main communication channels are postal mail and email, but many residents complain about not receiving updates. What strategies or platforms have worked well for keeping homeowners informed and engaged?

Since we’re new to this, any insights or best practices would be greatly appreciated! Thanks in advance for your advice.
KerryL1 (California)
Posts: 14,550
Posted:
Almost all of the communication forom our PM to owners is by email. If OK with NC statutes and you governing documents, the board should vote that th PM stop all of the unecessary USPS mailing except for what is. required.

You
re asking very good question, Shiri, more than you might realize and the require more detail than you might realize. But I think you'll gt useful replies!
DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By ShriR on 03/11/2025 7:54 PM

--- Exploring New PM Companies---

Are board members typically allowed to obtain quotes from other PM companies independently, or does this usually go through the existing PM? What’s the best way to compare services and pricing from different companies?

The board can absolutely get their own quotes for any service including a new PM. Remember the PM works for the association at the direction of the board. Per your governing docs and possibly the laws in your state, the board is elected to have the responsibility to run the association. The PM is just a vendor hired to handle day to day tasks to reduce the workload of the board. Many smaller associations self manage and don't bother with a PM at all.

Escaped former treasurer and director of a self managed association.
RoseM11 (West Virginia)
Posts: 7
Posted:
You have an enormous amount of questions. Set everything up you need to manage your development "immediately"; DO NOT DELAY. Get legal advice, join CAI and any other organizations. Communication - what I do - depends on what you are sending out. Email first, then mail, then email reminder. Post meeting dates to facebook and website. Someone is "always" going to complain.

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