Homeowner associations (HOAs) represent a large and lucrative industry, with over 330,000 HOAs encompassing 25% of U.S. homes. In 2021 alone, HOAs spent approximately $88 billion on residential property management services. But behind these impressive figures lies an antiquated sector critics say is sorely lacking in transparency and modern processes.
Michael Bollinger spotted these pain points and believed technology could help reform HOA management. In 2018, this serial entrepreneur launched a Lexington, KY, company called PayHOA to bring self-managed HOAs into the digital era.
PayHOA provides software features like accounting, online payments, various communication methods, and general HOA management tools such as violations, requests, and document storage, all to streamline association management processes. Homeowners can log in to their own portal, pay online, submit requests and work orders, and chat with their community online 24/7. PayHOA claims this self-service model can reduce the weekly volunteer hours required to run an HOA in half.
Rapid Growth Continues
In just six years, PayHOA has expanded rapidly, onboarding over 23,000 HOAs representing nearly 1,000,000 users nationwide. PayHOA has invoiced $1.6 billion to homeowners through its portal. PayHOA landed on the Inc 5000 list this year as one of America's fastest-growing companies.
But while PayHOA has achieved impressive growth, the company may face obstacles to fundamentally changing a sector anchored by legacy processes. A 2022 HOA survey found most associations still rely on paper statements and checks instead of digital tools preferred by homeowners.
Critics argue the change is slow because established HOA management companies benefit financially from maintaining old ways. These major corporations wield enormous influence as trusted advisors. Their resistance to new innovations hinders technological adoption.
Bridging the Gap Between HOAs and Homeowners
This resistance to change has created a gap between HOA decision-makers and the homeowners they represent. A recent survey found that 51% of homeowners cannot access HOA documents online, and 64% receive paper statements instead of digital.
Such outdated workflows create headaches for both homeowners and HOA volunteers. HOAs waste hours on manual processes that technology could streamline. The lack of transparency also breeds distrust of HOA decisions. Over half of homeowners rate their HOA experience as just "fair" or "poor."
PayHOA aims to bridge this gap by unifying management into a simple digital portal. Homeowners enjoy 24/7 access to information and self-service options. HOA volunteers can automate mundane administrative tasks to focus more on community building.
While some industry experts remain skeptical, PayHOA's rapid growth and enthusiastic customer base reveal a clear demand for transparent, tech-enabled HOA management software. Even if major legacy players resist change, motivated homeowners are increasingly driving the adoption of platforms like PayHOA themselves.
The Path Forward
It remains to be seen whether PayHOA will revolutionize the entire HOA industry. But its expanding customer base and glowing homeowner reviews signal that resident-driven innovation is here to stay. PayHOA's impressive progress indicates technology can meaningfully improve accessibility and operations when embraced. Homeowners are hungry for reform, and PayHOA equips them with tools to modernize HOA governance themselves.
The company's disruptive model may face resistance from established players wedded to old processes. However, PayHOA gives individual homeowners the power to affect change in their own communities. This grassroots momentum will likely continue driving the adoption of transparent, tech-enabled management throughout the industry. PayHOA's growth reveals an exciting new era of homeowner empowerment.
