Hiring a management company
How much does HOA management cost in Minnesota?
Updated October 2026 · Published by Elevate Community Management
Meet our association and construction teamThe short answer
The price of HOA management depends on unit count, property complexity and the work included. Compare the monthly base fee, any minimum, startup costs and additional charges as an annual total. The calculations below are illustrative; request a written proposal for an actual community-specific price.
How is the management fee structured?
A proposal may use a flat monthly fee, a per-unit rate or a per-unit rate subject to a minimum. If there is a minimum, calculate both amounts and use the higher one. Ask when the rate can change and what work triggers a separate charge.
Management fees and HOA dues are different. The management fee buys the firm’s services. Owner assessments fund the association’s whole budget, including insurance, utilities, vendors and reserves. Landscaping and snow removal are not included just because a manager coordinates those contracts.
What does the scope change?
| Scope | Work to price | Work the board retains |
|---|---|---|
| Full-service management | Financial, property, board and owner support defined in the agreement. | Governance, approvals and supervision of the manager. |
| Financial-only management | Billing, collections administration, payables, reporting and budget support. | Site operations, vendors, meetings and other duties excluded from scope. |
| Defined project | Specific deliverables, milestones and billing terms. | Other association operations and project approvals. |
How do monthly minimums affect the annual cost?
Illustrative calculations, not market averages or Elevate quotes. Assume a rate of $20 per unit per month and a $1,000 monthly minimum. These numbers are chosen to explain the math. Actual rates and minimums depend on the proposal.
| Units | Per-unit calculation | Monthly fee after minimum | Annual base fee |
|---|---|---|---|
| 20 | 20 × $20 = $400 | $1,000 | $12,000 |
| 50 | 50 × $20 = $1,000 | $1,000 | $12,000 |
| 80 | 80 × $20 = $1,600 | $1,600 | $19,200 |
Which additional charges belong in the comparison?
Request written rates for additional meetings, mailings, startup work, collections administration, resale documents and capital-project coordination. Ask whether vendor markups or referral payments exist, who pays each charge and what is already covered by the base scope.
Illustrative first-year total: a $12,000 annual base fee plus a $500 startup charge and four extra meetings at $150 each equals $13,100. Vendor work, insurance and reserve funding are separate. A recurring-year comparison would remove the one-time startup charge.
A project fee may be flat, hourly or tied to project value. Compare what supervision it buys and the approval process instead of assuming a standard percentage.
How should a board compare proposals?
Give every bidder the same property description, unit count, meeting schedule, amenities and reporting expectations. Normalize the included work, then compare first-year and recurring annual cost. Record any assumptions so a low base fee does not conceal a narrower scope.
Compare our full-service scope with financial-only HOA management, then request a written proposal. For the association’s whole spending plan, follow the annual budget guide.
Questions boards ask
Who pays the management fee?
The association normally pays it from its operating budget. A contract can allocate particular owner-requested services differently, so check the fee schedule.
What is a fair price for a small association?
Compare the written scope, monthly minimum and annual total. If volunteers retain site duties, financial-only management may be a better fit than a full-service package.
Are the example numbers Elevate’s rates?
No. They are illustrative assumptions for comparing proposals. Elevate prices the work for your community in a written proposal.