If you think you are paying your property management company too much and not getting enough in return, a self managed HOA may be the right option for you.
While many think paying a third-party management company to run your HOA will leave your days worry-free, often the HOA finds itself doing just as much work as they would if they were self managing.
Communication is often an issue with more parties involved, and you can feel as if your HOA’s voice and wishes are usurped by those of the management company’s.
Even if you’re fed up, you can worry that you won’t be able to do it all by self managing your HOA. The right comprehensive self managed HOA software can replace the expensive management company and allow you to optimally run your HOA for a fraction of the cost a property management company would charge.
We’ve listed the top ways using self managed HOA software can not only replace your management company, but run your HOA more smoothly and more to your liking.
5 Ways PayHOA Outperforms a Third-Party Management Company
A third party will charge you any chance they get.
With a third-party management company, your HOA will take the backseat on many decisions, most importantly collection processes for HOA dues.
Third-party management companies charge a flat fee to collect dues based on the amount of units or properties in the HOA. However, you may find yourself paying extra for services you expect to be included.
What this fee covers varies wildly among companies, and some companies even charge extra fees each time they issue an invoice or notice for a late payment.
This can add up to a lot of money that your HOA must absorb or pass on to your residents, taking valuable funds away from possible property improvements.
If paying extra money to get monthly dues seems backwards, it’s because it is. You will effectively be losing money to get this money. It’s almost as if you’re paying double for the lesser service.
Automation with PayHOA helps prevent late payments.
With self managed HOA software, if someone pays late, you won’t have to spend extra money to get your monthly dues.
You can easily issue reminders via mail, email, phone call, or text through PayHOA. Late fees can automatically be applied to any overdue accounts. You won’t have to pay any extra money for these services.
Using software will also help prevent late fees in the first place. PayHOA offers autopay to its users, which means homeowners are less likely to forget to pay in the first place.
A third party can make a bigger mess than expected.
Third-party management companies often lack flexibility when enforcing HOA rules. Since they don’t really have a connection with the property, they often write up policy violations without much nuance or consideration towards the offender.
This can be incredibly frustrating for questionable violations or first time offenders who would appreciate some grace for their situation.
Unfortunately for your HOA, even though the management company will exclusively make these decisions on your behalf you will often bear the brunt of residents’ ire in these situations.
Serve violations appropriately.
Ironically, self managed HOA software allows for a human element where a management company will often not. This is especially helpful when managing rule violations.
As fellow homeowners, your HOA volunteers may be familiar with the violator and know that their violation was an honest mistake. You can judge these cases individually and with nuance.
It also provides a barrier between the HOA and its homeowners should you need to pass down a violation. You can send notices through the platform, depersonalizing the process.
Protecting Your HOA’s Data
A third party company owns your information.
If you hire a third-party company to take over your HOA, they will really take over. Since they are running your HOA’s bookkeeping and financial information, a lot can get lost in translation between your management company and your HOA.
Since the management company handles everything, they use their own devices and methods to run things. This often means that you can be making decisions without all of the information.
Should you want to end your contract with the company, they will ultimately retain the potentially sensitive information they gathered during your association with them.
In a worst case scenario, the third party management company will retain your records and refuse to hand them over.
In the best case, your HOA will have to sort through someone else’s methods and data to figure out where to go from there.
With PayHOA, you control what is yours.
PayHOA is your HOA’s digital record. From unit and owner history, to finances, to outgoing communications, everything that goes through PayHOA will be available for your perusal at any time.
You can access reports at any time to gain insights into the finances of your operation.
Should you decide to move on from PayHOA one day, you will retain all of your HOA’s valuable information.
Maintaining Legal Compliance
Third party companies can only offer guidance.
While a third party company will protect the HOA board from much of the legal risk should something come up, it is most likely not worth the cost.
These management companies usually only provide advice on how to learn and stay up to date on the current laws for HOAs. Should something come up, you will have to hire a lawyer anyway.
PayHOA facilitates legal compliance.
Whether you’re self managed or using a management company, it’s in your HOA’s best interest to be familiar with your state’s HOA laws and how to adhere to them. You will also need to hire a professional should an issue arise in either scenario.
Self managed HOA software helps keep your organization compliant. You can use it to store important information and notices so homeowners are aware of the legalities of their living situation.
Plus, with everyone looking at the same source, PayHOA helps all parties involved – the board, HOA, homeowners, lawyers, and accountants – receive the same materials the same way.
Adding Value to your Neighborhood
Management companies take money away from your community.
Third-party management companies can cost HOAs tons of money each year through initiation fees, unit fees, and numerous extra charges that accrue. Homeowners fund this expense with their dues – hundreds of extra dollars per month, depending on the size of your HOA.
Since you are paying so much money, there are many services that you expect the company to offer as part of the package. However, your HOA will often have to pay a third-party company extra for seemingly run-of-the-mill services.
These charges can be for things like insurance claims, overseeing maintenance contractors, and attending board meetings, and this translates directly to larger dues for your homeowners.
You’ll spend tons of money and often not see the return on your investment you expect. At the end of the day, a property management company is a business with its own best interests at heart – not yours.
Invest in your home with PayHOA.
A self managed HOA is made up of residents who volunteer their time and skills to make their community a better place for themselves and their neighbors.
Not only will your HOA cost less to run–lowering costs for homeowners–you’ll have more contact with your neighbors.
PayHOA offers superior value and services at a fraction of the cost of a management company and gives you the power to manage your HOA your way.
With the right empowerment and resources, self managed HOA software can not only effectively replace your property management company, it can surpass it.