Should Your Community Be Self-Managed or Professionally Managed? A Guide for Volunteer Boards

Understanding Your Management Options

Volunteer boards like yours have two main choices when it comes to running your community's day-to-day operations: self-management or hiring a professional property management company. Each option has its benefits and challenges. The key is finding what fits your community’s size, needs, and available volunteer time.

Self-management means that board members or other volunteers handle tasks like communicating with residents, managing maintenance, collecting fees, and enforcing rules. Professional management brings in a company that specializes in these tasks, often with more experience and resources.

Key Differences to Consider

Aspect	Self-Managed	Professionally Managed
Time Commitment	Volunteers handle all duties, which can be time-consuming.	The company manages routine operations, freeing your time.
Expertise	Board members may learn as they go but could face steep learning curves.	Property managers have industry experience and knowledge.
Cost	Potentially lower direct costs but risk of mistakes or inefficiency.	Regular fees but potentially better long-term financial oversight.
Accountability	Relies on volunteers who may change or get busy.	Professional firms offer consistent service levels and contracts.
Complexity Handling	May struggle with legal or specialized issues.	Managers often have access to legal, financial, and maintenance networks.

Questions Your Board Should Ask

Before deciding, discuss these questions to understand what your community truly needs.

How much time can our volunteers realistically dedicate to managing the community?
Do we have anyone with relevant experience or skills (finance, legal, maintenance)?
Are our current operations running smoothly, or do we frequently face issues?
How complex are our community’s rules, finances, and maintenance needs?
What level of professional support do our residents expect?
Are there upcoming projects or challenges that require expertise?
Can our budget comfortably support professional management fees?
How will self-management impact liability and legal responsibility?

Warning Signs That Suggest Professional Help

It can be tempting to self-manage to save money. But consider these red flags that might mean professional management is the safer choice:

Frequent disagreements or confusion about rules and policies.
Missed deadlines for bill payments or collections.
Complaints from residents about poor communication or unresolved issues.
Difficulties hiring qualified contractors or managing maintenance.
Board members feeling overwhelmed or burnt out.
Complex financial records without proper bookkeeping.
Legal questions or compliance issues that require expertise.

How to Proceed If You Choose Professional Management

If professional management seems right, start by exploring your options carefully.

Compare management firms that specialize in your type of association.
Request proposals to understand services and pricing.
Review how firms are evaluated on how we rank firms, focusing on experience, customer feedback, and responsiveness.
Arrange interviews or calls with top candidates to ask about their approach, staff qualifications, and communication style.
Check references from other associations they manage.

Remember to involve your association attorney to review contracts and confirm licensing or legal requirements in your state.

Tips for Boards Managing Themselves Successfully

If your board decides to stay self-managed, these tips can help:

Clearly define roles and responsibilities among volunteers.
Maintain organized financial records and budgets.
Use professional software or tools to track payments and communications.
Schedule regular maintenance inspections using trusted vendors.
Communicate often and transparently with residents.
Document all decisions and keep minutes of meetings.
Get training or guidance from industry groups or consultants.
Consult your association attorney when legal questions arise.

Checklist to Help Your Board Decide

Step	Action
Assess Capacity	Determine volunteer time and skills available.
Identify Needs	List your community’s complexities and issues.
Gather Resident Input	Understand resident expectations and concerns.
Explore Options	Research firms via our directory.
Request Proposals	Use our proposal request tool.
Review Firms	Check firm rankings here.
Consult Attorney	Confirm legal and licensing matters.
Decide and Document	Vote and keep thorough records of the decision.

Your board’s choice should balance workload, expertise, cost, and peace of mind. Whether you manage yourselves or hire professionals, the goal is a well-run, happy community. Take the time now to make a thoughtful, informed decision.