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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.

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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.

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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.

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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.

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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.

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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.

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