Home Owners Associations are very common in today’s real estate market, but if you have never lived in a property that is a part of one, they will likely be a little mysterious. Today, I want outline what an HOA is, the purpose and common opinions about their advantages and disadvantages. This information is not necessarily a complete list nor does it apply to every association, but I hope it provides some general knowledge.
What is an HOA?
- HOA is an association of home owners typically formed as part of planned housing developments, townhomes and condos
- Associations may appoint a board of directors and hire a property management company that guides the association’s efforts
- Covenants, Conditions and Restrictions (CC&Rs) apply
- Typically there is a monthly bill called association dues applicable
What is the purpose of an HOA?
- Provide services - such as exterior maintenance
- Regulate activities – for example – animal leash laws, car parking requirements
- Levy assessments and impose fines.
What are the main advantages?
- Exterior maintenance free living – no need to personally shovel, mow, maintain siding or driveway
- Possible higher home values – everyone around you and in the association is held to a certain standard which includes keeping the homes looking presentable
What are the main disadvantages?
- Loss of individuality
- Fees
If you ever have any questions about a specific association or just about associations in general, never hesitate to call or email me.