Self-Managed vs. Professionally Managed: How Rhode Island Condo and HOA Boards Decide

A lot of Rhode Island condo associations and HOAs, especially smaller ones, are run entirely by volunteer board members. Some of them run beautifully. Others limp along on the goodwill of one or two people until something breaks. If you sit on a board and wonder whether it is time to bring in professional management, here is a practical way to think about it.

What self-management really involves

Running an association is a part-time business. Someone has to:

• Bill and collect dues, and follow up on owners who pay late
• Pay vendors, keep the books, and produce financial statements
• Build an annual budget and track reserves
• Hire and supervise landscaping, snow removal, trash, and repairs
• Answer owner questions and send violation notices
• Run the annual meeting and keep minutes and records
• Produce resale certificates when units sell, on a legal deadline

When the volunteers have the time, skills, and patience for all of that, self-management can work well and save money.

Signs it is time for help

• Dues are slipping. Late payments pile up because nobody wants to chase a neighbor.
• There are no current financials. Owners ask where the money goes and the board cannot answer on paper.
• One person is doing everything. If the treasurer moved away tomorrow, nobody else knows where the records are.
• Vendors do not follow through, and nobody has time to follow up.
• Closings get delayed waiting on association documents.
• Board seats go unfilled because owners have watched how much work it is.

What changes with professional management

A manager takes on the day-to-day work and the paper trail. The board keeps the decisions: the budget, the rules, which vendors to hire, and whether to take on a project. In practice, owners get one point of contact, dues collection becomes a routine instead of a personal conflict, and the board gets monthly statements it can actually use.

Management does not have to be all or nothing. Some boards start by handing off only billing and bookkeeping, or only vendor coordination, and keep the rest.

What it costs

Association management is usually priced per unit (per door) per month. The number depends on the size of the association, how much work is handed off, and the condition of the current books. A small self-managed condo and a large HOA leaving another management company are very different jobs. Ask for a written proposal that spells out exactly what is included.

How the switch works

Once the board approves a management agreement, the records move over: bank accounts and signers, the owner ledger with every balance, vendor contracts, insurance policies, governing documents, and meeting minutes. Owners get a notice with new payment instructions and a new contact. A good manager runs that transition from a checklist so nothing falls through the cracks.

Questions to ask before you hire

• What exactly is included in the monthly fee, and what costs extra?
• What financial reports will the board get, and how often?
• How are delinquent dues handled?
• Who is our day-to-day contact, and how fast do they respond?
• How do we end the agreement if it is not working?

If your board is weighing the options, we are happy to look at where your association is today and tell you what we would do, whether or not you hire us. Learn about our HOA and condo management.