TownSq vs PayHOA for self-managed HOA boards (2026)
TLDR
TownSq offers a free tier with communication and basic dues collection, but its accounting tools are too limited for boards that need to report to homeowners or track reserves. PayHOA ($49-$199/mo) handles payments and violations better, but it has no reserve study tools either. If reserve fund compliance matters to your board, neither tool covers it.
| Feature | TownSq | PayHOA | BoardStack |
|---|---|---|---|
| Monthly cost | Free-$2/unit/mo | $49-$199/mo | $20–$99/mo |
| Reserve fund compliance | No | No | Built-in, state-specific |
| Built for | Professional management | Professional management | Volunteer boards |
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What each tool is built around
TownSq started as a community communication platform. The product grew to include dues collection and basic financial tracking, but the foundation is still the community feed, event calendar, and messaging features. Boards that want homeowners to engage with announcements will find it more useful than boards whose main job is financial reporting and compliance.
PayHOA started from the opposite direction: online payments and violation management first. The owner portal lets homeowners pay dues, see their account balance, and submit requests without calling the board. Violations get logged with photos, tracked through resolution, and archived. The financial reporting is more complete than TownSq’s, though it still lacks fund accounting.
Where TownSq falls short for financial management
TownSq’s free tier does not give your board the financial reporting your state’s disclosure requirements likely demand. You can record transactions and see balances, but you cannot separate operating funds from reserves, track reserve funding levels, or generate the reserve status reports most states require for annual budget ratification.
Boards that use TownSq for communication but then maintain a separate spreadsheet or QuickBooks file for financials end up managing two systems. That duplication is where errors and commingling risk come from.
Where PayHOA falls short
PayHOA’s pricing scales by unit count. At 51-100 units it runs $99/month, and at 101-300 units it runs $199/month. For a mid-sized community, that is a reasonable price, but you are still not getting fund accounting. Operating and reserve funds sit in the same ledger. If your state requires reserve fund disclosures (California, Florida, Virginia, and others do), you need to track those figures separately, either manually or in a different tool.
PayHOA also does not have reserve study integration or a reserve funding calculator. Your treasurer has to pull reserve balance numbers from outside the platform and report them separately.
Where BoardStack fits
BoardStack ($20–$99/mo flat by community size) separates operating and reserve funds by default, tracks reserve funding levels against reserve study targets, and generates the compliance reports boards need for annual meetings and state disclosures. The flat pricing does not scale with unit count, so a 200-unit community pays the same as a 100-unit community at the same tier.
If your board’s priority is community engagement and you can handle financials separately, TownSq or PayHOA may be enough. If reserve compliance is on your agenda, and in many states it is legally required, you need a tool built around fund accounting from the start.
| Feature | TownSq | PayHOA |
|---|---|---|
| Pricing model | Free tier + $1-2/unit/mo paid | Flat tiers ($49-$199/mo) |
| Reserve fund accounting | No | No |
| Operating/reserve fund separation | No | No |
| Community communication tools | Yes (primary focus) | Basic |
| Financial reporting | Limited | Yes |
| Violation tracking | Basic | Yes (with photo evidence) |
| Online dues collection | Yes (paid tiers) | Yes |
| Owner portal | Yes | Yes |
PROS & CONS
TownSq
Pros
- Free tier available for basic community communication
- Strong community engagement features: announcements, events, messaging
- Residents can engage without board involvement
Cons
- Very limited financial reporting — insufficient for state reserve disclosures
- No reserve fund compliance tracking
- Paid tiers run $1-2/unit/month, which adds up for larger communities
PROS & CONS
PayHOA
Pros
- Flat pricing that does not scale linearly with unit count
- Stronger financial reporting than TownSq
- Better violation management with photo documentation workflow
Cons
- No reserve fund compliance tracking
- Operating and reserve funds not separated by default
- Weaker community communication and engagement features than TownSq
Which is better for self-managed HOA boards, TownSq or PayHOA?
It depends on your board's priorities. TownSq is better if community communication and resident engagement are the main goal. PayHOA is better if online dues collection, financial reporting, and violation management are priorities. Neither tool tracks reserve fund compliance.
Is TownSq free for HOAs?
TownSq has a free tier that covers community messaging and document storage. Features like advanced financial reporting, maintenance tracking, and integrations require paid plans at $1-2/unit/month. A 100-unit community on TownSq's paid tier pays $100-$200/month.
Do TownSq or PayHOA separate operating and reserve funds?
No. Both TownSq and PayHOA treat HOA funds in a single general ledger and do not separate operating and reserve funds as distinct accounting pools. Neither tracks reserve funding levels against reserve study targets or generates the reserve status reports many states require.
Verdict
TownSq works if your board mainly needs a communication hub and can live without real financial reporting. PayHOA is a better choice if you collect dues online and run violation workflows. Neither replaces purpose-built fund accounting or state reserve compliance tracking.
Is TownSq really free?
What does PayHOA do that TownSq does not?
Do either TownSq or PayHOA handle reserve fund accounting?
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Related Comparisons
Best TownSq Alternative for Self-Managed HOAs
TownSq's free tier is communication-only. Self-managed boards that need reserve fund tracking and financial compliance should look beyond TownSq's weak financial tools.
Best PayHOA Alternative for Self-Managed HOAs
PayHOA handles payments well but lacks reserve fund tools and state compliance features. BoardStack gives self-managed boards reserve tracking and liability protection at $20–$99/mo.
HOA reserve fund compliance guide
Which states mandate reserve studies, what those requirements mean for your board, and how to fix your accounting to separate operating and reserve funds.