HOA- Something to Consider
How do you feel about Home Owner’s Associations?
We have noticed that some of our clients have pretty strong feelings one way or another about Home Owner’s Associations or “HOAs.” Whether you love or hate them is usually based on some experience or story you have heard. If you are not familiar with what they do, we will explore a few things here.
1. What is an HOA?
A Home Owners Association is an organization, typically established by a developer to take over maintenance of a community once it is finished or nearly finished. They enforce the covenants and restrictions of the neighborhood, oversee common spaces and amenities such as pools and handle disputes between neighbors.
2. They can be costly.
Depending on the neighborhood, HOA fees can relatively high or low. Generally homeowners do not mind paying a little more if they believe it is for good reason. HOA fees often include: common area landscaping, pools, playgrounds, community centers, gyms, parks, playgrounds and sports fields. The HOA dues are definitely something to keep in mind as they can significantly increase your monthly payment. In some Senior Living Communities they take care of nearly everything including lawn maintenance and taking trash to the curb these can cost as much as the mortgage, effectively doubling the monthly payment. You’ll need to make sure your income can support the total cost. HOAs often have the power to place lens or even foreclose on properties that are not making the required payments, even if you are current on your mortgage.
3. They enforce Community Standards.
The covenants and restrictions can include rules about nearly everything from your lawn to house color and where vehicles can be parked. This is great if you don’t want your neighbor to be able to paint their house neon green and pink or park a giant RV in their driveway, but not so great if you like the option to do as you wish with your home. The standards keep home prices relatively standard, and are seen as a way to protect property value. Some HOAs have even taken over lawn maintenance on abandoned or derelict properties, keeping up appearances. Outdoor enthusiasts may find themselves unable to park their shiny new toy in their driveway. That fantastic new exterior color combination you saw on HGTV may not be allowed by the covenants and restrictions. Again, depending on your style and/or lifestyle, an HOA could be a positive or a negative. It is certainly something to think about.
4. It can be a great way to meet your neighbors.
Many HOAs meet fairly often, how often is based on the community. This can be a great way to meet the more involved members of your community. Remember that the board members are your neighbors. If you are elected to serve on the board, you can get to know and work with many of your neighbors to influence the direction of your community.
As you may have gathered, how much you like HOAs in general is often based on your past experience. A well-run HOA can be a blessing and an out of control one can be a curse. Make sure to look into the covenants and restrictions, dues and amenities of the community before you make the decision. Once you are in the community, get involved! This will greatly affect your experience. If you know that you want to live in a community that does or does not have an HOA let your real estate agent know, we can filter out properties that do not fit your preferences.
