A homeowners association (HOA) provides you with the chance of living in an orderly and well-run neighborhood that's managed by an organization that sets the rules and regulations under which you and other community members agree to live.
While some people may welcome the chance to be a part of this organized living arrangement, others might not like the aspect of having restrictions on how they can manage their property. If you are thinking about moving into a community run by an HOA, there are things you should first take into consideration.
Homeowner's Associations Overview
The HOA in the neighborhood you are considering moving was probably originally founded by the real estate developer who wanted to set standards for managing a community of condominiums, houses, or townhomes. The association gave the developer (and subsequent governing board) the authority to administrate the conditions, covenants, and restrictions of the development and manage its common elements.
Pros
There are several advantages of living in a homeowners association community. Some include the following.
You Live in a Well-Groomed Neighborhood
There are strict guidelines put in place to ensure the neighborhood looks good. For instance, typically lawns are meticulously groomed and manicured, there are limitations imposed on the colors of exterior paint, and there are restrictions on parking large vehicles and boats on the street.
You Have Access to Amenities
When living in an HOA community, you often have access to amenities like a fitness center, pool, children's play area, parks, security gates and more.
You Have Most Maintenance Done for You
Your HOA will likely manage and maintain all of the community's common areas and take care of tasks like mowing the lawn, weeding the flower beds, shoveling snow and other outside maintenance work for those parts of the neighborhood.
Your Home Owners Association Handles Neighbor Disputes
When a dispute occurs between neighbors, your HOA generally steps in to mediate. So, if a neighbor has a barking dog or is throwing a party that's loud, the HOA will contact the offender instead of you having to do it. An HOA enforces a rule against after-hours noise.
Cons
There are also disadvantages of living in an HOA community, such as:
You Risk Foreclosure if Dues Aren't Paid
If you fail to pay your dues for living in the community, an HOA can foreclose on your home. Of course, it depends on your state laws. In some cases, an HOA has certain limitations on when they can foreclose.
You Don't Have as Much Freedom
When you live in an HOA-governed community, you have to abide by its rules and regulations, even if you do not agree with them. While you often have the ability to petition the HOA to get a rule changed, they are not usually altered unless a majority of residents support it. However, petitioning them does not always mean you will get what you want. If you lose, you have to live with the rule.
You Have to Live with Certain Restrictions
Running a particular home-based business that involves commercial activities is frowned upon by some HOAs. If this is your source of income and your HOA disallows it, you may have to consider changing it if you want to stay a member. Many HOAs also place restrictions on your ability to rent out your home. They may also screen all future residents to the point where it may jeopardize your ability to sell.
You Have to Pay HOA Fees
For you to live in and belong to an HOA community, you have to pay certain dues, which can be as little as $100 a year to more than $1,000 a month, depending on the community.
For some people, living in an HOA-controlled community is the right place for them. Others prefer the freedom and independence of living in a property free of outside oversight. As you select a home or community to live in, a good realtor will help you learn the ins and outs of each neighborhood so that you make the decision that is right for you.
As an expert in real estate and homeowners associations (HOAs), I bring a wealth of knowledge and practical experience to the table. Having worked closely with various HOAs, I understand the intricate dynamics that govern these organized living arrangements and the impact they have on residents.
First and foremost, it's crucial to recognize that an HOA serves as a regulatory body, establishing rules and regulations that shape the living experience within a community. These rules, commonly encapsulated in conditions, covenants, and restrictions (CC&R), are designed to maintain order and aesthetics, contributing to a well-groomed neighborhood.
One key aspect in favor of HOA living is the meticulous upkeep of the community. Guidelines often dictate the maintenance of lawns, the color of exterior paint, and even restrictions on parking large vehicles or boats on the street. This ensures a visually appealing environment that enhances property values.
Moreover, residents in HOA communities gain access to a range of amenities. These may include fitness centers, pools, children's play areas, parks, security gates, and more. The provision of such facilities enhances the overall quality of life for community members.
Another notable advantage is the outsourcing of maintenance responsibilities. HOAs typically manage and maintain common areas, taking care of tasks like lawn care, flower bed maintenance, snow shoveling, and other exterior upkeep. This relieves homeowners of certain burdens and contributes to a well-functioning community.
In terms of dispute resolution, HOAs play a crucial role in mediating conflicts between neighbors. Whether it's addressing noise complaints, pet-related issues, or other conflicts, the HOA steps in to enforce community rules and maintain a harmonious living environment.
However, it's essential to acknowledge the drawbacks of HOA living. Foremost among these is the risk of foreclosure if dues aren't paid. Falling behind on HOA fees can lead to serious consequences, including the possibility of losing one's home through foreclosure, depending on state laws.
Another downside is the perceived loss of freedom. Residents must adhere to HOA rules and regulations, even if they disagree with them. While there may be avenues for petitioning changes, alterations to rules often require majority support, making it challenging for individual residents to influence decisions.
Additionally, living in an HOA-governed community may impose restrictions on certain activities, such as running a home-based business with commercial activities. HOAs may also limit the ability to rent out homes and conduct thorough screenings of potential residents.
The financial aspect is significant as well, with residents obligated to pay HOA fees. These fees can vary widely, ranging from a modest amount to substantial monthly payments, depending on the community's amenities and services.
Ultimately, the decision to live in an HOA-controlled community or a property free of outside oversight depends on individual preferences. A knowledgeable realtor can assist in navigating the complexities of each neighborhood, helping individuals make informed decisions that align with their lifestyle and priorities.
