CEO Predicts Self-Managed HOAs Could Reach 50% as Technology Improves

Written by:

Rudi Davis

Date:

18 Feb 2026

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Advances in digital tools are enabling volunteer HOA boards to assume management duties previously handled by traditional firms. The change could reshape how the nation’s 70,000 homeowners’ associations operate.

According to HOA Start CEO Clayton Thompson, the property management industry faces a threat many firms have yet to acknowledge. He predicts that within five to six years, self-managed homeowner associations will account for at least half of all U.S. HOAs. Today, they make up about 30 to 40 percent. He says technology is reducing the need for professional management.

“More and more communities are moving away from property management to self-manage because the tools are getting better and better,” Thompson says. “We’re about to see massive disruption in the property management industry over the next couple of years, as AI advances and tools like ours let people manage their neighborhoods themselves.”

The trend is already visible. Each year, 5,000 to 10,000 new HOAs form. Many existing communities also end contracts with management firms. The key question is whether property management companies can adapt quickly enough to remain relevant.

Why Boards Are Leaving Property Managers

The move away from professional management is driven by persistent dissatisfaction with the service model, Thompson argues. He says the average HOA board changes property managers every three years. He views this as a sign of widespread dissatisfaction.

“If I’m on an HOA board using a property manager, I’ll end up changing managers every three years,” Thompson says. “There are good property managers, but most companies assign 10, 20, or even 30 associations to one person. That’s too much for anyone to handle.”

With property managers stretched thin, service problems are common. Managers handle architectural requests, vendor interviews, compliance issues, and resident communications across multiple communities. Boards often report slow responses and inconsistent service. Some then decide to manage operations themselves.

Thompson points out that the issue isn’t the managers themselves, but the business model that forces firms to maximize the number of associations per employee to stay profitable. This structure has created an opening for technology to offer a more sustainable alternative.

Technology Makes Self-Management Possible

Modern digital tools now cover core tasks that once required a property manager. These include messaging, online payments, digital voting, document storage, and financial reporting. Thompson says these systems are advanced enough to let volunteer board members manage their communities while holding full-time jobs.

“Our tools will eventually make it possible for them to have a full-time job and manage their neighborhood with a light lift,” Thompson says.

This shift coincides with changes in both technology and HOA board demographics. Many board members are now in their 60s and have long experience using online tools. As this group becomes more comfortable with software and younger, tech-savvy homeowners join boards, resistance to self-management continues to decline.

Thompson notes that new HOAs often start with professional managers but increasingly switch to self-management as technology improves. “As technology advances, that number will go from 30 to 35, to 40 percent,” he says. “In five or six years, it won’t surprise me to see more than half of HOAs self-managed.”

Industry Impact and Competitive Landscape

The rise of self-management doesn’t mean property managers will disappear. Thompson acknowledges some boards will still prefer to outsource management. But he says the industry’s economics will have to change.

Property management firms that survive will need to use the same technology that enables self-management, allowing them to serve more communities at lower costs. This would differ from the current model, in which firms compete primarily on service breadth rather than on efficiency or price.

The market is already beginning to split along these lines. Thompson says HOA Start doesn’t compete directly with large property management software providers like AppFolio or Yardi, which focus on accounting and sell to management firms. Instead, HOA Start competes with platforms like PayHOA, which target self-managed communities.

This separation may not last. Thompson expects that eventually, companies like his will also sell to property management firms, making their employees more efficient. “There always will be property managers,” he says. “But more people will be willing to do it on their own.”

What’s Next for Property Management Firms

Thompson’s forecast leaves property management firms with a clear choice: adapt by becoming technology-enabled service providers operating at higher efficiency and lower cost, or risk losing market share to self-managed communities.

The 5,000 to 10,000 new HOAs formed each year are especially important. If these communities begin as self-managed rather than automatically hiring property managers, the industry’s traditional customer acquisition model will break down.

HOA Start is positioning itself to serve both sides of this transition, building tools for self-managed boards now and developing features to help property managers operate more efficiently in the future. Whether other technology providers and management firms follow suit may determine which companies survive the changes Thompson predicts.

Looking ahead, the property management industry will need to respond quickly as more HOAs choose self-management. For firms unwilling or unable to adapt, the coming years will likely bring shrinking client lists and declining relevance. For those who embrace new technology and rethink their business models, there is still an opportunity to shape the future of HOA management.