If you are considering moving into a home in a community that is overseen by a Homeowners’ Association you should make sure that you understand that specific HOA’s rules, regulations and fees before you agree to purchase or lease the property.
Everyone has their own opinion on HOAs. Responses range everywhere from very positive to very negative. An HOAs presence in a community is there to enforse community rules and collect dues. Some people object to the restrictions placed on neighborhoods by an HOA, while others praise their existance and appreciate the services provided.
Since an HOA can add hundreds (even thousands, depending upon the community) of dollars to the cost of renting or owning a home, it is important to weigh the pros and cons before you sign any kind of documents tying you to the property.
PRO: An HOA can greatly improve your property’s value by regulating the outer apearances of all homes in the community. Some will require lawns to be maintained at a certain hight, garage doors to repain closed, or allowing only specific colors of home paint or materials on the buildings.
CON: Many homeowners do not want to be held responsible for having to ask permission to make changes to their home’s appearance. The HOA has the power to reject plans and improvements. It may feel like someone is constantly breathing down the back of your neck to make sure that your home is landscaped correctly and that the shutters are acceptable colors.
PRO: HOA fees pay for the maintenance of the community’s common areas. These include areas such as pools, playgrounds or workout facilities. They may also provide services such as landscaping and snow removal depending upon the time of year.
CON: The HOA fees are an added expense and subject to change year to year. If you disagree with changes in the HOA you are not at liberty to stop paying the fees. The HOA has the power to put a lien on your home or even force a foreclosure.
PRO: HOAs can be called on to resolve conflicts between residents. It is their job to maintain positive feelings between neighbors and they have the final say on all matters. They also organize events for the residents of the area to promote a sense of community.
CON: HOA boards are typically made up of volunteers who may not have time to spend with all HOA matters. This can sometimes lead to poor management and a feeling that the fees are being wasted. Some HOAs hire a management company, but in this case the residents will not have any personal ties to the company and may be feel underrepresented.
Before you decide to rent or purchase a home with an HOA make sure to obtain a copy of their rules and regulations. Talk to other neighbors in the area and see how they feel about it. As long as you keep yourself informed you should be in the clear. Know what you are getting yourself into.
If you have any questions on Homeowners’ Associations or anything else real estate related, feel free to give us a call at Occasio Realty! 480.699.1820.
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