HOAs Now Prefer Hands Off Management

The days of the neighborhood HOA are pretty much done. Due to liability issues, most HOAs are in the process of transferring the day-to-day operation of their association over to one of the new breed of professional property management HOA companies.

Because these companies have to carry insurance and otherwise indemnify their employers from loss, they are a much safer bet when it comes to liability issues. HOAs that are run by ardent homeowners themselves, sometimes with axes to grind against their neighbors, often find themselves stirring up legal trouble.

Since all of the property owners in a district are jointly responsible for any legal judgments lodged against the HOA, wiser, or at least more cautious, districts have stepped back from the ordinary daily running of the district and are now confining themselves to ruling on larger strategic questions only.