John Carona, founder and CEO of Associa, the world's largest manager of homeowners associations, appeared on the Building Texas Show to discuss the company's origins, the role of HOAs in Texas, and its expansion into Europe. Recorded at Associa's Richardson headquarters, the conversation with host Justin McKenzie provided insights into a company that now employs 24,000 people and manages communities across the United States and Europe.
Carona started the business about 18 months after graduating from the University of Texas at Austin, where he worked three jobs to pay for school. With just two employees initially, the company grew "one client at a time," organically at first and later through acquisitions. Associa has acquired more than 200 companies and adds 25 to 30 management firms each year.
Addressing common misconceptions about HOAs, Carona emphasized their financial benefits. "The most important thing homeowners associations do is they preserve the value for the owners themselves by adding some degree of conformity, some reasonable rules and regulations," he said. He noted that property values in communities with mandatory HOAs consistently grow faster than those without. Survey data shows that over 95% of residents appreciate their HOA experience, but Carona acknowledged the remaining 4-5% who may have concerns. "It's our job as a management company to try to address the issues that those four to five percent bring up." Associa now surveys every board it represents three times a year to identify and resolve problems early.
When asked what sets Associa apart, Carona highlighted technology and employee training. "We live in the Amazon age. People want more for less," he said, stressing the need for efficiency and cost-effectiveness. Associa operates 340 branch offices across 44 states, allowing employees to move between markets without leaving the company. This contributes to employee retention, with many staff members staying for 25, 30, or even 40 years. Employees have voted Associa a national best place to work for nine consecutive years, an achievement Carona called his proudest.
On the international front, Associa recently acquired the second-largest operator in Spain, marking its first major international purchase. Carona expects the company to become the number one operator in Spain by the end of December. This acquisition is the first step in a three-to-five-year rollout across Europe, with plans to enter the UK, France, and Italy, and inbound interest from Germany. While terminology varies by country—"stratras" in parts of Canada—the service remains essentially the same.
For homeowners in Texas's booming "triangle," Carona advised scrutinizing transportation, location, and build quality, noting that Texas does not license builders. "From time to time, bad actors can come on the scene," he warned. The full episode of the Building Texas Show is available now wherever podcasts are heard.
