Frequently Asked Questions (FAQ)
Start an HOA Management Business in California

Is a $4,000 investment realistic to start an HOA management company in California?

An investment of $4,000 is realistic, if I become your partner and also invest $4,000. A total budget of $8,000 should be sufficient.


Does the potential exist for making a substantial income in the HOA management business?

Yes. However, it will not happen overnight. HOA management companies start to generate significant earnings when they reach about 30 HOA accounts which requires two or three managers depending on the size of the properties.


Is a California real estate brokers license required to operate an HOA management company?

No. A real estate brokers license is required to manage rental properties, not homeowner associations.


What are the best areas in California in which to start an HOA management company in your opinion?

Any area will work, but the best areas are San Diego County, Orange County, Riverside County, Bakersfield, the Coachella Valley, and the Santa Clarita Valley. There are condominiums and planned developments everywhere and the percentage of homes having a homeowner association is constantly increasing. Today, it is almost impossible for a home builder to obtain building permits unless he or she includes an HOA. Cities and counties are forcing home builders to include greenbelts, parks, and other amenities in nearly all planned developments, and every condominium development requires an HOA.


Will I need an office?

No. Until you are very large, you can easily operate your HOA management business from your home. An office will never be required if you partner with us.


If I start an HOA management company in California, will I also be able to offer rental home management and leasing services to clients?

Managing and leasing rental properties requires that you have a California real estate license. If you are not currently licensed, we can assist you in obtaining a license.


I have a construction background. It is feasible to offer construction and maintenance services to homeowner association clients?

Absolutely. Offering these services can be very profitable and is definitely a positive factor.


Are you willing to partner with someone anywhere in California?

Yes, provided we do not already have a partnership arrangement in the immediate area.


I have property management experience, but no accounting experience. If I partner with you, will you handle all accounting responsibilities and escrows?

Absolutely. We own a small accounting firm that can handle all accounting and escrow functions.


How many years of HOA management experience do you have?

I have more than 34 years of homeowner association management experience and more than two decades of experience owning and operating my own law firm that focused on HOA and real estate law.


Are there many barriers to entry into the HOA management business?

The barriers to entry are relatively low. With me as a co-owner or consultant, I can make the barriers even lower.


Can you assist me in starting an HOA property management company in a state other than California?

No. The laws that apply to homeowner associations are different in every state. I know the California laws that apply to HOAs very well, including the Davis-Stirling Act, but I do not know the laws of the other states.

Start an HOA Management Company in California