Question:
How large must an HOA before it needs to have a professional management company oversee its finances?
We live in a community with 45 houses that everyone says requires a financial property management company. But I know of a neighborhood HOA with 15 houses that does not have such a business model.
– David
Answer:
Hi David,
There really is no standard for this. It really depends on the needs of your community. An HOA can have hundreds of homes and still operate without professional management if the board can manage on its own. It is a good idea to evaluate your current situation and whether or not your HOA board can handle the association’s finances alone. There are many benefits to hiring professional management, though, as it would free up the board to do other things. It also ensures a more accurate and standard practice for the association even when there is a change in board members.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
