Self-Management Summary for Legacy Pointe HOA Meeting (Is it worth it?)

Current Setup: 194 units × $70/month = $13,580/month ($163,080/year). Landscaping: ~$6,700/month; (~$6,880/month) for Management, Insurance, Legal, Reserve Study, Filings, Utilitys, CPA etc. Self-management may save, however self management may have its risks along with heavy unpaid workload for board member.

Pros:

  • Save Money: Cut roughly $28,000 -$34,000 / year in management fees.

  • Control: Board/homeowners decide everything.

  • Community: More homeowner involvement.

Cons (Risk):

  • Secretary of State Issues: Missing Annual List filings ($25/year) risk status, halting operations, freezing bank accounts, and exposing board to lawsuits (NRS 82.523). Reinstatement costs $50–$5,000.

  • Unreconciled Accounts: Errors hide missed payments, fraud, or reserve shortfalls, risking NRED fines ($500–$5,000), lawsuits, and board liability (NRS 116.31175).

  • Board Liability: For potential mismanagement (e.g., financial errors, non-compliance). Protection only if no gross negligence (Bylaws, Article V, Section 3).

  • Workload: 15–25 hours/week per board member, unpaid, causing burnout (Bylaws, Article III, Section 9).

  • Value Loss: Mismanagement could cut home values.

  • Turnover: Unpaid stress leads to resignations, disrupting management.

  • Legal Errors: NRS violations (e.g., budgets, notices) risk fines, lawsuits.

  • Conflicts: Board faces complaints directly, increasing stress.

Board Workload (What’s Required):

  • Finances: Budgets, collect $13,580/month, liens, CPA audits (5–8 hours).

  • Vendors: Manage $6,700/month landscaping, repairs (4–6 hours).

  • Enforcement: Violations, fines, hearings (3–5 hours).

  • Meetings/Records: Agendas, minutes, notices (3–6 hours).

  • Communication: Handle complaints, updates (2–4 hours).

Nevada Law Requirements:

  • Budgets: Annual with reserves; yearly CPA audit; 5-year reserve study.

  • Meetings: 1 annual, 4+ board (2 after hours), open with comments.

  • Enforcement: Fines need notice/hearings; mediation for disputes.

  • Insurance: Liability, property, fidelity bonds.

  • Records: Financials, minutes, owner access.

Voting:

  • End Contract: 98/194 owner votes at meeting (Bylaws, Article V, Section 6).

  • Petition: 20 owners call special meeting (21 days’ notice).

  • Bylaws Change: 98 votes to amend, if needed.

Costs (vs. $28,000 -$34,000 for pro management):

  • Software: $500–$2,000/year (Buildium, AppFolio, Vinteum Neigbrs).

  • CPA: $2,500–$5,000/year.

  • Bookkeeper: $12,000–$24,000/year.

  • Attorney: $2,000–$5,000/year.

  • Insurance: $1,500–$3,000/year.

  • Total: $18,500–$39,000/year (savings: $0–$41,500).

Value Risk: Savings could lower dues, but poor maintenance or enforcement cuts home values.

Turnover Risk: Replacements are hard to find, risking errors.

What are the current Management Tasks that the homeowner may not directly see?

  • Collect assessments, file liens.

  • Manage budgets, audits, reserves.

  • Negotiate vendor contracts.

  • Ensure NRS compliance, mediation.

  • Keep records, owner access.

  • Handle complaints, shield board.

  • Secure insurance, bonds.

  • Prepare meeting agendas, minutes.

  • Can It Work? Very challenging for 194 units without skilled volunteers.

  • Risks > Rewards? Yes—liability, possible value loss, board turnover outweigh savings.

  • Suggestion: Keep a good professional relationship with the Management Company, see to it that they work with the community on a frequent basis.