Self-managed communities large and small can save a considerable amount of money by eschewing third-party management and handling their day-to-day business in-house. This means the board must assume the tasks and responsibilities that communities with outsourced management delegate to their managers—including those that involve compliance with local laws, regulations, and inspections. Staying on top of a bunch of complex, frequently-changing rules can be both stressful and time-consuming, but the boards of self-managed communities have no choice but to get—and stay—up to speed with them, or risk running up costly fines and penalties. 

With that said, let’s examine how self-managed communities navigate the Byzantine network of local laws, regulations and requirements that impacts their daily operations.

Staying Up to Date

Perhaps the most immediate benefit of having third party management for one’s building or association is the ease with which necessary information is passed along from the managing agent to the board for consideration and decision, and vice versa. No searching, no Googling, no waiting on hold for hours or dealing with glitchy AI chatbots; just a simple email, text, or phone call to your manager or management firm, and solutions are on the way. (At least that’s how it’s supposed to work.)

But self-managed communities don’t have that luxury, and so board members and trustees must take the initiative to inform and educate themselves about everything from their community’s bylaws to its HVAC setup—and, just as crucially, the slate of local rules, laws, and regulations the community must abide by. 

Kris Kasten, a partner at Bartzen Rosenlund Katzen, a law firm located in Chicago that represents many self-managed associations, cautions that “self-managed communities need to actively seek out information about local and state laws to stay up to date and compliant.” But how can they do that?  “Boards can task one or more board members or active members of the community to monitor the legal landscape and report to the board about important changes affecting the community.”

William McCracken, a partner with New York City-based law firm Moritt Hock Hamroff, points out that in New York, with its ever-expanding catalogue of local ordinances, rules, regulations and amendments thereof, “It’s very difficult. The first thing a self-managed building needs to recognize and understand is that property management is a full-time profession for a reason. It’s a really hard job, and you can’t do it halfway without taking some big risks. So if you choose to self-manage—and I understand that it’s often a case of economic necessity, especially for smaller buildings—be prepared to put the work in.”   

 Kasten explains that another important consideration is maintaining an appropriate calendar for deadlines, submissions of information, and inspections.  “Self-managed boards need to be aware of compliance deadlines established by municipal or other local governmental agencies,” he says. “Those deadlines may be annual, or every set number of years. Knowing and keeping track of those deadlines is necessary for planning and budgeting purposes. For example, Chicago requires periodic inspections of exterior walls of buildings over 80 feet tall. There are two types of inspections: One involves a visual examination at a distance every two years. The second involves a close-up examination that must be done every four, eight, or 12 years, depending on the construction of the building. Boards need to know when those different types of inspection reports must be filed with the City so they can include them in their budget and engage the appropriate company to perform the inspections.”  

Navigating the Labyrinth

In a perfect world, those within a community who have the skills to navigate this maze—an attorney or CPA, or perhaps a former banker or even a retired property manager—would step up and volunteer their expertise in service to the condo, HOA, or co-op they call home. That’s what often happens in large retirement and active adult communities; more residents means a larger ‘talent pool’ to draw from. The smaller the community, the less likely it is to find the necessary skillsets in-house. While the volunteer board of a six- or eight-unit condo community might be more than capable of hiring a cleaning company or drafting a budget, there will inevitably come situations that require professional guidance and advice. To meet those situations capably and handle them effectively, it may be necessary to tap your community’s attorney or accountant, or both.

Matthew Gaines, a partner with Marcus, Errico, Emmer & Brooks, a law firm located in Braintree, Massachusetts, advises as follows: “Even if the association is self-managed, it is advisable for them to have an attorney who specializes in community association law to assist the board as needed. Most attorneys will be knowledgeable of any changes to applicable laws and regulations, and will notify their clients accordingly.”

Gaines adds as an example that “MGL c. 183A, a state law in Massachusetts, was amended in a few respects by the legislature at the end of 2024. This was the first time there had been any changes to the statute in a few years, and it’s something a self-managed board might not have known about. We have many such clients, so our office, along with other law firms, all send out e-newsletters to our contacts notifying them of these changes. This is a good example of why it’s important to have an attorney and, importantly, if you are self-managed, get on their newsletter lists.”

Scott Piekarsky, a principal with Offit Kurman, a law firm based in Hackensack, New Jersey, says that “We represent many self-managed communities, and the biggest challenge in our experience is recordkeeping.  In any lawsuit, documents are the most important tools we use. In a self-managed scenario, with a smaller association, there may not be the best record keeping procedures in place, and often the community’s records are not kept in a central place. 

Other hurdles include having no one on the board who’s familiar with discrimination laws and procedures for reasonable accommodations in building code issues, town zoning, and other regulations, he continues. “They don’t anticipate litigation ever, especially from noncompliance with local regulations and laws; they just don’t see what’s potentially coming. Oftentimes they try to figure out for themselves what to do before going to their attorney. They’re not trained to do it, but they don’t want to incur the cost.”

Other Options for Guidance

One notable exception should be kept in mind: some self-managed associations and corporations adopt a hybrid model wherein they have an ‘on-site’ manager who is hired by the community to exclusively assist the board and community with its daily affairs. These arrangements are more common in places like Florida and New Jersey, where there are large numbers of over-55 and active adult communities, but are not uncommon around the country. It’s important to keep in mind that these managers, known as community managers, are not the same as third party managers. They tend to have far less in the way of training and education, and don’t tend to benefit as much from the extensive networks of professionals outside management that third party managers offer. 

Another option for self-managed firms is to seek non-legal or professional advice.  That can often be found through organizations and publications. Gaines adds, “Of course, having a subscription to New England Condo Magazine is a great way too, since there are often articles about trends and changes that affect community associations.”

“My recommendation,” says Scott Wolf, CEO of BRIGS, a property management firm in Boston, “is to join the Community Associations Institute (CAI). Join both the national and local chapters. You will receive publications with the membership. Those publications will help.”  

Kasten stresses how important it is for self-managed boards without the aid of professional management to work with knowledgeable legal, and financial professionals to help them identify and navigate relevant laws, as well as those versed in insurance coverage and physical engineering and maintenance needs. “For example, insurance professionals familiar with the community association industry in the community’s area can help boards obtain insurance policies that meet the minimum requirements established by statutes and ordinances, as well as the association’s governing documents.

“Engineers can help boards understand building codes that require inspections and reports,” Kasten continues. “If the building has an elevator, then an elevator company can be consulted about whether periodic inspections and reports are required by governmental authorities. Local fire marshals or fire departments can be consulted about life safety issues the community needs to be aware of. Point being, self-managed boards cannot possibly know and do everything themselves. The need to identify and work with others with specific expertise who can assist the board with managing the community. That may also involve delegating certain tasks to other members of the community who are not board members but willing to lend a helping hand.” Keep in mind that just about everything else, these types of services likely come with a fee.

McCracken suggests a practical point for self-managed communities. They need to build a knowledge base over time to make managing the property easier year after year. “The one thing that I would stress is that institutional knowledge is essential,” he says. “However a building organizes itself to hold regular meetings and comply with deadlines, you can’t afford to have to re-invent the wheel every few years.  Take what you’ve learned over time, preserve that and build from it.”

While self-management may seem like a logical choice for some communities, particularly smaller ones, make sure you organize yourself well.  Keep your records in order and in one place. Digitize if you can, it protects from disasters like flooded basements. Develop strong relationships with industry professionals, like attorneys, accountants, and tradesmen, so that when a few sentences of advice or a simple explanation is required, you have someone to call. Hopefully, an ongoing relationship with service providers will facilitate a ‘freebee’ every now and then.  And if someone in the community (or their brother-in-law) has a skill set you need,  tap it. Pay attention! And good luck.                         

A J Sidransky is a staff writer/reporter for New England Condominium, and a published novelist. He may be reached at alan@yrinc.com.