News & Trending Mortgage & Loans News

10 Things Your HOA Management Company Doesn’t Want You To Know

HOAs put a lot of pressure on property owners, but they may not always have it together behind the scenes.

By Sandy Baker

Edited by Lauren Wellbank

Updated Jan. 20, 2025

Living in a community with a Homeowners Association (HOA) isn't inherently bad, especially when you believe in their mission of maintaining the current lifestyle of the neighborhood.

But it can be frustrating if you disagree or don't know of specific restrictions, especially if you're trying to make smart money moves as a homeowner.

The people behind those decisions are the HOA board, which may then employ an HOA management company. The board's responsibilities are creating and managing the budget and establishing rules for the community, while the management company's role is implementing them.

While there is plenty to love or hate about your HOA, one thing many of these organizations have in common is that there is a lot that goes on behind the scenes that they don't want you to know about.

Here are ten things management companies hope residents like you don't know about them because knowledge is power.

Steal this billionaire wealth-building technique

The ultra-rich have also been investing in art from big names like Picasso and Bansky for centuries. And it's for a good reason: Contemporary art prices have outpaced the S&P 500 by 136% over the last 27 years.

A new company called Masterworks is now allowing everyday investors to get in on this type of previously-exclusive investment. You can buy a small slice of $1-$30 million paintings from iconic artists, all without needing any art expertise.

If you have at least $10k to invest and are ready to explore diversifying beyond stocks and bonds,see what Masterworks has on offer. (Hurry, they often sell out!)

They can receive referral fees or kickbacks for vendors

HOA board members look to management companies to hire and manage vendors such as plumbers, electricians, and landscapers.

However, management companies may receive referral fees or kickbacks from some vendors, which creates an inherent bias.

You might not receive the top-quality services you are paying for if management companies prioritize their pockets over vetting a quality vendor.

While it isn't illegal for them to do this, you do have a right to know about it and question the quality of the vendor's work to the board.

Want to learn how to build wealth like the 1%? Sign up for Worthy to get ideas and advice delivered to your inbox.

Management may neglect preventative maintenance to preserve their administrative costs

Preventative maintenance could lower the cost of maintaining major systems, such as underground pipes, sidewalks, and patios, but it doesn't help the management company's bottom line

Not all HOA management companies have a schedule to tackle these types of tasks, which can often lead to costly repairs down the road.

You can hold the board and, subsequently, the management's feet to the fire by routinely attending meetings and requesting a preventative maintenance schedule.

Homeowners may be allowed variances beyond what they share

Many HOA contracts incorporate variances into the specific terms and conditions of the legal document.

That means that what is written is not always black and white or set in stone. It also means that some associations have the ability to make reasonable considerations in virtually every situation, which is something they may not want to make public knowledge to their residents.

Get a free stock valued between $5 to $200

Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.

Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.

Let’s say you want to invest $250, as an example.

With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.¹ This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. To get stock reward, new customers need to sign up, get approved, and link their bank account. Stock rewards shares cannot be sold until 3 trading days after the reward is granted and the cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at <a href="https://robinhood.com/us/en/support/articles/open-account-pick-your-stock/">rbnhd.co/freestock</a>. Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement. Robinhood Gold is offered through Robinhood Financial LLC and is a membership offering premium services available for a fee.

Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.00% (as of 12/27/24) APY² Annual Percentage Yield. Rate valid as of April 12, 2024. To earn interest, a cash balance is needed. If you have a margin balance, there is no cash balance to earn interest. Interest rates for cash sweep and margin investing can change at any time. Fees may reduce interest earnings. on your uninvested cash³ Interest is earned on uninvested cash swept from your brokerage account to partner banks. Partner banks pay interest on your swept cash, minus any fees paid to Robinhood. As of Nov 15, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 5% for Gold customers. The APY might change at any time at the partner banks' or Robinhood's discretion. Additionally, any fees Robinhood receives may vary and are subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks. All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. and the ability to buy and sell stocks 24 hours a day, 5 days a week.

Open and fund a Robinhood account and earn up to $200 in stock

They don't work for you, but you can fire them

Many HOA boards hire management companies to keep the property operational and to meet objectives, so technically, management companies work for the board.

But that doesn't mean they should ignore you and your needs. So, if you are treated poorly, speak up to the board. They can (and should) be fired if they aren't upholding the needs of the board and community.

You have the right to inspect records

A common complaint from residents occurs when HOA boards have strange or silly rules, like prohibiting homeowners from hanging clotheslines outside their homes.

While it is the management companies' job to enforce whatever rules they concoct, they may not always hold weight if not properly documented or held accountability.

For instance, in the case of clotheslines, 19 states have laws that say that HOAs cannot limit a person's right to have one.

They might not be able to enforce a fine they threaten you with

Fees and fines are generally outlined clearly in the contract you signed before you moved into your home.

And while your HOA management company may try to hit you with a violation fee for doing something that the board says goes against the rules, if everything isn't spelled out in your bylaws or contract, they may be unable to enforce anything.

Read your contract to find the exact details before you shell out any cash.

Grow Your $$: 11 brilliant ways to build wealth after 40

They often don't update their technology

This may not seem like a big deal, but many HOA management companies use outdated technology and tools to manage the community.

Modern tools, such as improved communication or budgeting resources, could save your organization money over time, which is why they may not want you to know that they haven't paid to have any of their software updated over the years.

Nothing they do can overstep the laws of the Fair Housing Act

To be clear, HOAs have rules about living within their community, but they cannot discriminate in any way that falls under the Fair Housing Act. That includes factors such as race or ethnicity.

That means they cannot block you from moving into an area because of your race, religion, or views on life.

You are entitled to review the budget

You have a budget that helps you plan when and where to spend money, so you don't have to ask for help paying your mortgage. Budgets are a good thing, and most HOAs employ HOA management companies to enforce them.

However, they may not follow those initial goals or objectives four, five, or six months into the year.

As a property owner, you have a right to this information and should regularly review it.

Earn up to a $300 bonus and grow your money with up to 3.80% APY

This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 3.80% APY.⁴ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. See full bonus and annual percentage yield (APY) terms at <a href="http://www.sofi.com/banking#1">sofi.com/banking#1</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of Jan. 24, 2025. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>.

This is one of the top accounts we’ve seen, and offers like this can be rare. You work hard, and now it’s time to make your money work for you — with SoFi, you can grow your money with hardly any effort!

SoFi has no account fees⁵ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a> or overdraft fees⁶ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A.  The 30-Day Evaluation Period refers to the "Start Date" and "End Date" set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the "30-Day Evaluation Period"). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY.  Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage. and additional FDIC insurance up to $3 million on deposits is available through a seamless network of participating banks.⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>. Plus, you can receive your paycheck up to 2 days early.⁸ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

How to earn up to $300: Sign up and make a direct deposit within the first 25 calendar days of the promotional period, then collect a $300 cash bonus with a direct deposit of $5,000 or more.

SoFi is a Member, FDIC. ⁷ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.

Open your SoFi account and set up direct deposit

Bottom line

Know the rules before your next homeownership move takes you into (or out of) an HOA so you know exactly what you'll be permitted to do by the association.

That may mean carefully reading through the regulations, bylaws, and any contracts you're asked to sign and then asking questions before you put anything in writing.

And if you're already living in an HOA, you can still take those same steps to ensure that your experience is a pleasant one while you're there.

More from FinanceBuzz:

Don't Let Home Repairs Drain Your Bank Account

Choice Home Warranty Benefits

First month free
Protection for unexpected expense
24/7 claims hotline
Network of over 15,000 technicians

Get a free quote