How much does HOA management cost in Virginia?

No single figure fits every Virginia association. The fee for HOA management is whatever the association and the manager agree in a written contract, and it moves with the number of homes, the amenities, the services included and what the manager bills on top. Virginia law does fix who may charge for it and what a manager must have in place, and that is the best protection against a cheap quote that turns out to be thin.

What the management fee pays for

Virginia's definition of management services is a good checklist for what the base fee should cover. It includes:

• preparing budgets, financial statements, or other financial reports for an association^[1]
• collecting, disbursing, or otherwise exercising dominion or control over money or other property belonging to an association^[1]
• arranging, conducting, or coordinating meetings of an association or the governing body of an association^[1]
• negotiating contracts or otherwise coordinating or arranging for services or the purchase of property and goods for or on behalf of an association^[1]

Managers package these differently. One firm's base fee may include attending board meetings and handling vendor bids; another may charge for each meeting, each site visit and each violation letter. That difference, more than the headline number, is why two quotes for the same community can be far apart.

What drives the price

Size and layout. More homes mean more accounts to bill and more calls to answer, but also a lower cost per home. A community with a clubhouse, pool, gate or private roads needs more vendor management than a small townhouse group with a lawn contract.

Hours and access. Evening board meetings, an after-hours emergency line and on-site visits cost more than a part-time office arrangement.

Collections and violations. Many contracts bill separately for late-payment follow-up, covenant enforcement letters and attorney referrals. Ask what each costs and who decides when to escalate.

Financial work. Budget preparation, year-end statements and audit or review support may be in the base fee or priced as extras. The board must also make the annual budget or a summary available to lot owners before the fiscal year starts, and must conduct at least once every five years a study to determine the necessity and amount of reserves required to repair, replace, and restore the capital components.^[4] Ask whether the manager helps schedule and coordinate the study.

Records and transfers. Owners can request association records on five business days' written notice for an association managed by a common interest community manager and 10 business days' written notice for a self-managed association.^[6] Ask whether the manager charges to handle those requests, and what it charges to hand records to a successor manager.

What a licensed manager must have

A manager who charges less may be cutting something the law requires. Under Virginia law, any person, partnership, corporation, or other entity offering management services to a common interest community on or after January 1, 2009, shall hold a valid license.^[2] As a condition of that licence, the manager must:

• carry a blanket fidelity bond or employee dishonesty insurance, in an amount equal to the lesser of $2 million or the highest aggregate amount of the operating and reserve balances of all associations under the control of the common interest community manager during the prior fiscal year.^[2] The minimum coverage amount shall be $10,000^[2]
• certify that an independent certified public accountant reviews or audits the financial statements of the common interest community manager at least annually, and that it has established a code of conduct for the officers, directors, and persons employed by the common interest community manager to protect against conflicts of interest^[2]
• certify that it provides all management services pursuant to written contracts with the associations to which such services are provided^[2]

These are costs the manager carries, so they are part of any honest fee.

Self-management is allowed

The licence requirement does not stop an association from running itself. Virginia does not prevent an employee of an association from providing management services for that association's common interest community, or a resident of a common interest community acting without compensation from providing management services for that common interest community.^[3] The savings are real, but so is the load on volunteers.

Getting proposals you can compare

Ask every manager for the same scope and an itemized proposal that shows the base fee, the extras with their prices, the term, and how the contract ends. Virginia's rule on renewal is useful leverage: a management contract that contains an automatic renewal provision may be terminated by the association or the common interest community manager at any time without cause and without penalty upon not less than 60 days' written notice.^[5] Still, read the termination and transition terms before you sign, and have an attorney review the contract if the amount at stake is large.

Stop and call a pro if

• A manager cannot show a Virginia licence. Do not sign until the licence is confirmed with the Common Interest Community Board.
• The contract has fees you cannot price. If extras are billed at "cost plus" or "as needed" with no rates, ask for a schedule or look elsewhere.
• The contract conflicts with your declaration or bylaws. A Virginia attorney who works with associations should review it.
• Money is missing or the books do not reconcile. That calls for an attorney and an independent accountant, not a different manager alone.

Getting help in Virginia

For the law behind all of this, read what Virginia laws govern homeowners associations. For comparison, see how much property managers charge in Virginia, which covers rental management. Browse more commercial answers or the commercial services directory.

For repairs and upkeep at your community, describe the job and local pros quote it.