Liability for self manage

The decision of self-management is one that really needs to be made on a case-by-case basis.

But in answer to your "liability" question, regardless of whether an association is "self-managed" or "managed" by a property management company, the association would still have a board of directors and that board of directors must have insurance. By "must" I mean some covenants actually spell it out, but even those that don't, it's imperative that the association have both liability (umbrella) insurance and Directors & Officers insurance.

With both types of insurance, then, regardless of self- or management-company managed, liability should not be an issue.

Also, because an association might be self-managed, that doesn't necessarily mean that the maintenance work, or any other sort of "work," is necessarily done by the board members alone.

We are a self-managed association, but we have contracts with various vendors that provide lawncare and common area maintenance, irrigation system maintenance, security for the common areas, and vendors for ad hoc projects, such as fence construction, etc.

BM,
The advice received so far seems on the money.
Just don't think because you have finally reached the point you can pay to have some one cut the grass, etc., that will automatically happen. It won't and if you don't pay attention the manager you hired may have to be replaced, or the Management Company has to be replaced or the BOD has to be replaced. All extreme example but will happen if you and your fellow owners don't sail the ship. What ever way it works best is the way to go and that can change from year to year or sometime month to month. Paying attention to your association business is hard work and it has the same rewards as hard work does anywhere.