Self-Managed HOA: Why It Is a Second Job and Not a Hobby

Serving on an HOA board can be a thankless assignment. Running a self-managed HOA, where the board does the work rather than directing it, is a different order of commitment. Nevada attorney Troy Isaacson does not soften making his point.

“Any time a homeowner is serving on their HOA board of directors, it is a thankless job, whether it is self-managed or managed by a company,” he says. “The board members have to deal with a lot of grief and a lot of complaints from homeowners in the community. Nobody ever comes to them with anything positive, and very few homeowners will thank them for their jobs.”

That is the baseline. Self-management is what happens on top of it.

The Difference Between Deciding and Doing

The distinction Isaacson draws is simple, and it is the one most boards underestimate. A board working with a management company makes decisions. A self-managed board makes the decisions and then executes every one of them.

“Instead of just making decisions on what the association is going to do and having those decisions carried out by the management company, they are now in the position of having to carry out those activities,” he says. “Whatever it may be. Coordinating with the landscaper, consulting with a lawyer, getting a contractor. They are also responsible for the books of the association. If a homeowner requests documents, they have to make those documents available in a manner that is in compliance with Nevada law.”

His conclusion is blunt. “They are signing up for essentially full-time jobs on top of whatever else they have going on in their lives.”

When Does It Stop Being a Hobby?

Asked at what point self-management crosses from volunteer work into a second job, Isaacson does not describe a threshold or a community size. Instead, he says, “The second you take on that job as a board member. If you are self-managing, you are taking on a full-time job. Even in a small association, you are managing the books, you are following up on payments of the assessments, you are trying to collect those assessments, you are coordinating with the landscapers, you are coordinating with contractors, the lawyers, the accountants, getting the audits done, the reserve study for the community association. These are things that have to be done regularly within a community, in addition to just paying the bills.”

Read that list again as a job description rather than a sentence. Bookkeeping. Accounts receivable. Collections. Vendor management. Legal coordination. Audit preparation. Reserve study administration. Accounts payable. The list goes on.

In any other context, that is a staffed position. In a small association it is being handled by two or three neighbors during evenings.

What a Self-Managed HOA Board Actually Absorbs

Isaacson frames the decision in terms of positions rather than hours, which tends to land better with boards weighing the cost of management against the cost of doing it themselves.

“When management is hired, their management is doing the job of the board secretary, keeping the minutes and the books and the records of the association,” he says. “They are doing the job of the treasurer by keeping the books and taking care of the payments, making sure that the bills are being paid, making sure the assessments are being collected, making sure that the liens are being filed against delinquent homeowners. They take on all of that responsibility. So, if management is not hired and management is not doing that job, then the board members will have to do it.”

Two of those items deserve particular attention.

Records production is a legal obligation with a deadline and a format. When a homeowner requests documents, the association’s response has to comply with NRS Chapter 116 regardless of who is available to pull the file.

Delinquency and lien filing is a process with its own procedural requirements, and it is one that volunteers are frequently reluctant to pursue against their own neighbors. That reluctance is human. It is also how associations end up with receivables they cannot collect and reserves they cannot fund.

The Advice Isaacson Gives Before a Board Goes It Alone

When boards ask him what to consider before choosing self-management, he does not tell them not to do it. He tells them to be honest about the arithmetic.

His advice is “to think about all of the extra responsibility that they are going to be taking on.”

That means asking practical questions in advance rather than discovering the answers later:

• Who does the books and what happens when that person moves or resigns?

• Who responds to a records request during a work week?

• Who runs the collections process against a neighbor?

• Who tracks the audit and reserve study deadlines?

• Who covers all of it when a board member steps down mid-term?

A board that can answer those questions specifically may well be ready to self-manage. A board that answers them with “we will figure it out” is describing a plan that has already failed in a lot of other communities.

For associations that want legal support without a full management contract, our outside general counsel services may be a fit.

Frequently Asked Questions

Is it legal for an HOA to self-manage in Nevada? Yes. Self-management is permitted. However, the obligations under Nevada law do not change, and board members in a self-managed association are held to the same standards as a licensed professional manager.

How much work is a self-managed HOA really? In Isaacson’s assessment, it functions as a full-time job even in a small association, covering bookkeeping, assessment collection, vendor coordination, records production, audits, and reserve studies.

What does a management company actually take off a board’s plate? Primarily the secretary and treasurer functions: minutes, books, records, bill payment, assessment collection, and lien filing against delinquent owners.

Can a self-managed board hire an attorney without hiring a manager? Yes, and many do. An attorney handles complex questions. Boards should understand that the routine day-to-day compliance work remains theirs.

Talk to a Nevada HOA Attorney

If your board is weighing self-management, or is already self-managed and unsure whether it is meeting its obligations, contact Isaacson Law. You can also review our Nevada HOA rules, regulations and resources page.