1 - Is Self-Management Right for Your Community?
1.1 Why volunteer boards choose self-management
Self-management means the HOA's day-to-day operations are run entirely by the volunteer board of directors instead of a paid management company. Boards usually consider this model for two reasons:
Cost savings. Management companies charge ongoing fees. National surveys show that standard management services cost roughly US$10-20 per unit per month and sometimes as much as US$20-50. For a 100-unit community those fees can range from US$1,000-5,000 per month. In a very small HOA (fewer than 25 units), those payments may consume a significant share of the annual budget. By eliminating management fees, boards can redirect funds to maintenance, reserves or keeping dues lower.
Control and community. Self-managed boards make decisions and implement them directly, which means faster responses and policies tailored to the community's priorities. Because board members are neighbours, homeowners often feel more comfortable raising concerns and have greater visibility into how money is spent.
1.2 When self-management may not be a good fit
The appeal of lower costs must be balanced against the demands of running an association. Self-management is most common in smaller communities - typically those with 25-50 units or fewer. HOAs with extensive amenities, complex facilities or hundreds of units often benefit from professional expertise and economies of scale. Consider these drawbacks:
- Time commitment and burnout. Board members have jobs, families and other obligations. Managing an HOA is a substantial responsibility, and volunteer burnout is a real risk. A general rule of thumb is 2-8 hours per month for board service, and some officers may spend more: presidents typically devote 3-8 hours, treasurers 3-6 hours, and secretaries 2-4 hours each month.
- Expertise gaps. Professional managers bring accounting, legal and vendor-management experience. Self-managed boards must develop or outsource these skills.
- Compliance and liability. Regardless of the management model, federal, state and local laws still apply. Boards that ignore fair housing rules, tax requirements or reserve-fund mandates could expose the community to fines or lawsuits.
1.3 Checklist: deciding if self-management suits your HOA
Use the following questions to evaluate readiness:
- How many units do we have? Communities with 25-50 units or fewer are usually best suited for self-management.
- Are board members willing and able to handle key tasks? Self-management requires handling dues, maintenance, rule enforcement and communications.
- Do we have volunteers with finance, law or property-management experience? Expertise gaps can be mitigated by using accountants or attorneys, but the board must know when to seek help.
- Can our budget absorb management fees? Compare the per-unit cost of professional management (US$10-50 per month) with your current expenses.
- How complex are our amenities and common areas? Pools, elevators and extensive landscaping increase the workload.
Hybrid Management
If most answers are "yes," a volunteer board can likely handle the responsibilities with the right tools and processes. Otherwise, consider hybrid management (outsourcing accounting or legal functions while managing other tasks internally).
2 - Legal Obligations and Fiduciary Duties
Regardless of size, every HOA board owes fiduciary duties to the association and its members. These duties are codified in state nonprofit corporation laws. For example, the Colorado Revised Nonprofit Corporation Act requires board members to act "in good faith, with the care an ordinary prudent person in a like position would exercise under similar circumstances." Key obligations include:
2.1 Duty of care and due diligence
Board members must prepare for meetings, ask questions and rely on experts when needed. Decisions should be based on reasonable inquiry and informed judgment. Skimming over budgets or ignoring legal advice may constitute negligence.
2.2 Duty of loyalty and conflict of interest
Directors must place the association's interest ahead of personal gain. Conflicts of interest must be disclosed, and members should recuse themselves from votes involving their own finances or businesses.
2.3 Duty of confidentiality
Boards handle sensitive information such as owner delinquencies and violation records. Directors must protect confidentiality and restrict access to authorized persons.
2.4 Recordkeeping and transparency
State statutes often specify which records must be maintained and produced to unit owners. In Colorado, the Common Interest Ownership Act defines the records that "must be produced" and those that may be withheld. Regardless of jurisdiction, a self-managed board should keep minutes, budgets, contracts, insurance policies and correspondence. Make documents available to owners through a secure portal to promote transparency and comply with record-requests laws.
2.5 Insurance and risk management
Volunteer board members should not expose personal assets. Directors and officers (D&O) insurance protects against lawsuits alleging mismanagement. Industry guidance notes that strong D&O policies for average-sized communities typically cost US$1,000 to 2,000 annually; premiums under US$700 often indicate inadequate coverage. Boards should also maintain general liability and property insurance.
Legal Compliance
Fiduciary duties apply regardless of whether you use professional management. Failing to act in good faith, disclosing conflicts, or maintaining proper records can expose board members to personal liability.
3 - Roles and Responsibilities in a Self-Managed HOA
Running an HOA without professional help means the board must perform all operational functions. Understanding each officer's role helps divide the workload fairly.
| Role | Core duties | Time/month |
|---|---|---|
| President | Sets meeting agendas, presides over meetings, signs contracts, oversees follow-through | 3-8 hours |
| Vice-president | Acts when the president is unavailable, leads projects and committees | 2-5 hours |
| Secretary | Prepares minutes and notices, maintains records, handles annual disclosures | 2-4 hours |
| Treasurer | Prepares budgets, tracks receipts and disbursements, oversees collections and reserves | 3-6 hours |
| Director at large | Votes on policy, leads specific committees or tasks | 1-3 hours |
In addition to officer duties, all board members share responsibility for the following tasks:
- Finances. Plan the annual budget, collect dues, pay invoices and maintain financial records. Review actual spending versus budget monthly and fund reserves for major repairs.
- Vendor coordination. Solicit bids, hire vendors for maintenance and repairs, negotiate contracts and supervise work.
- Rule enforcement and dispute resolution. Enforce the CC&Rs and house rules consistently. Issue violation notices, hold hearings before imposing fines and document all steps. Use mediation when informal resolution fails.
- Maintenance and operations. Oversee common areas such as landscaping, pools and sidewalks, coordinate routine maintenance and address emergencies.
- Legal compliance. Stay current with federal and state HOA laws (e.g., Fair Housing, ADA) and ensure governing documents are followed. Consult attorneys on issues beyond the board's expertise.
- Communication and recordkeeping. Send meeting notices, minutes and newsletters; respond to owner inquiries; maintain a secure repository of documents.
4 - Transitioning to Self-Management
If your HOA is currently managed by a professional firm, a structured transition plan helps avoid gaps in services. Consider the following steps:
Step 1 - Evaluate board readiness
Begin by discussing self-management with fellow board members and active volunteers. Make a list of all tasks currently handled by the management company - from collecting dues and paying bills to coordinating vendors and preparing annual meeting notices - and decide which tasks your board can absorb. Be candid about available time and skills.
Step 2 - Review your management contract
Most management contracts require advance notice to terminate. A 30-day notice is common, but some agreements require 60 or 90 days. Read the termination clause carefully, note any penalties, and plan your effective date accordingly. Consult legal counsel before sending notice.
Step 3 - Check governing documents and vote
Verify that your CC&Rs and bylaws allow the board (and, if necessary, the membership) to switch to self-management. You may need to hold a vote or amend governing documents. Obtain homeowner support by explaining the reasons, benefits and potential risks of self-management.
Step 4 - Collect records and assets
Request all association records from the outgoing manager - financial statements, bank accounts, reserve studies, contracts, insurance policies, violation files and architectural records. Keep copies of digital files and paper documents. Ensure the board has signatory authority on bank accounts and that funds are properly transferred.
Step 5 - Set up tools and processes
Establish systems for accounting, document storage, communications and maintenance tracking. Many volunteer boards use HOA-specific software to automate dues billing, online payments, accounting and resident portals. Thorpia's dues calculator helps boards calculate equitable monthly assessments based on units and budget; the reserve fund calculator projects long-term savings requirements. Implement separate email addresses for board functions (e.g., treasurer@hoa.com) and create checklists for routine tasks (e.g., monthly reconciliation, annual budget review, annual meeting preparation).
Step 6 - Assign roles and train volunteers
Divide responsibilities among officers and committees using the roles table above. Provide training on basic accounting, contract review and meeting procedures. Encourage volunteers to attend Community Associations Institute (CAI) workshops or similar educational programs.
Ready to calculate your HOA dues?
Use our free dues calculator to estimate equitable monthly assessments for your self-managed HOA.
5 - Operating Your Self-Managed HOA Day-to-Day
5.1 Meetings and calendars
Schedule regular board meetings monthly or quarterly; publish the calendar in advance to set expectations. Use agendas to time-box topics and allocate time for owner forums. Between meetings, board members should monitor email inquiries, approve invoices and handle minor decisions. For major projects, allocate extra time for bidding and oversight.
5.2 Budgeting and financial management
Adopt a realistic budget each year. Compare actual expenses against budget monthly and adjust as needed. Fund reserves consistently - small, regular contributions are better than emergency special assessments. Approve invoices only with supporting contracts or scopes and avoid vague "miscellaneous" lines. Provide owners with clear financial statements to build trust. Remember that volunteer treasurers typically spend 3-6 hours a month on these tasks.
5.3 Rule enforcement and dispute resolution
Enforce the CC&Rs fairly. Provide written notice of violations and an opportunity for a hearing before imposing fines. Document all actions in meeting minutes. Use mediation or an impartial committee to resolve neighbour disputes when informal discussions fail. Recuse yourself from votes where there may be a personal conflict.
5.4 Vendor management and maintenance
Develop a maintenance calendar for routine tasks (landscaping, snow removal, pool service) and inspect common areas regularly. Solicit multiple bids for major projects, evaluate contractors' insurance and references, and sign clear contracts. Supervise the work and ensure it meets specifications. Document warranties and maintenance schedules.
5.5 Communication and transparency
Post board agendas and meeting notices in advance. Publish minutes promptly and include key decisions and votes. Send regular newsletters or email updates to keep owners informed about projects, finances and upcoming elections. Maintain a secure online portal where owners can view governing documents, financial reports and contact information. Transparent communication reduces confusion and helps prevent disputes.
5.6 Risk management and professional support
Even self-managed boards should engage professionals when needed. Hire a CPA to prepare tax filings and audit financials. Consult an attorney for legal questions or amendments to governing documents. Purchase adequate D&O insurance (US$1,000-2,000 per year is typical for average-sized communities) and ensure the association also carries general liability and property coverage.
6 - Using Thorpia's Tools to Streamline Self-Management
Thorpia offers calculators and tools designed specifically for volunteer boards:
HOA dues calculator
Enter the number of units, your annual budget and the allocation method to calculate equitable monthly or quarterly assessments. Export results to a spreadsheet for transparency and share them with homeowners. This tool helps treasurers avoid errors and justify dues increases.
Try the HOA Dues CalculatorReserve fund calculator
Estimate long-term reserve needs over 10-30 years. Model different contribution scenarios to see how annual payments affect your ability to fund major repairs and replacements. Use the output to support conversations with homeowners about future assessments.
Try the Reserve Fund CalculatorDocument repository and communication platform
Thorpia allows boards to centralize meeting minutes, budgets, governing documents and vendor contracts in a secure online workspace. Owners can submit questions and download documents without emailing the board directly. This reduces administrative work and improves transparency.
Ready to see how much you could save?
Use our free dues calculator to estimate your community's monthly assessments and see how self-management could impact your budget.
7 - FAQ for Volunteer Board Members
How long does self-managing an HOA take each month?
Board service typically requires 2-8 hours per month, though presidents and treasurers may spend up to 8 hours during budget season. Complex projects can temporarily increase the workload.
Can we outsource some tasks while remaining self-managed?
Yes. Many HOAs adopt a hybrid model - boards handle governance and rule enforcement but hire accountants for bookkeeping or attorneys for legal advice. Modern HOA software can automate dues billing, payments and communications.
What size community is best suited for self-management?
Self-management is most common in communities with fewer than 50 units and is especially practical when there are 25 units or fewer. Larger associations with complex amenities often benefit from professional management.
How do we prevent burnout?
Delegate tasks, use committees for projects, schedule meetings efficiently and invest in tools to automate administrative work. Encourage new volunteers to join the board to spread the workload.
What legal obligations do we need to remember?
Follow state HOA laws and your governing documents, comply with fair housing and ADA regulations, and maintain accurate records. Act in good faith and avoid conflicts of interest. Purchase D&O insurance to protect personal assets.
8 - Conclusion: Balancing Autonomy and Responsibility
Self-managing an HOA can deliver real benefits - lower costs, greater transparency and a stronger sense of community - but it is not a shortcut. Boards must commit time, learn new skills and uphold fiduciary duties. By asking hard questions up front, planning a careful transition and using tools like Thorpia's calculators to simplify dues and reserve planning, volunteer boards can manage their communities confidently. When in doubt, seek professional guidance to protect your association and its members.