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Answers for Boards

Can we negotiate HOA management fees?

Yes, and Boards do it far less than they should. The management fee is a quoted price in a competitive market, not a published tariff, and firms expect movement — particularly on a community with clean books, a functional Board, and low delinquency, which is genuinely cheaper to service.

The base fee is usually the least productive place to push, though. A company that cuts it by eight percent has to make it back somewhere, and the somewhere is the ancillary schedule you did not read. More productive targets: getting meeting attendance included rather than billed, capping the annual escalator or tying it to CPI, striking the auto-renewal, getting the fee schedule attached as an exhibit so it cannot change unilaterally, and fixing the price for the full initial term.

The strongest position is having real alternatives. A Board with three comparable proposals in the same format is negotiating; a Board with one is asking for a favor.

Do it before you sign. Once the agreement is executed, the only leverage left is the notice period.

General information for Board members, not legal advice. State law and your governing documents control, and both vary.

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