What is a homeowners association? Should I buy property in a homeowners association?

A homeowners association (HOA) is a group that creates and enforces rules for homeowners who live within its jurisdiction. HOAs are frequently found within subdivisions, condominiums, and other planned communities. You should purchase a property that is subject to an HOA if you believe the advantages outweigh the disadvantages.

HOAs typically require membership from homeowners in the community and are run by a board of governors with input from its members. You can ask for a particular HOAs’ Declaration of Covenants, Conditions, and Restrictions (CC&Rs), which will outline the conditions and rules that owners must currently abide by.

Advantages of an HOA

HOAs can offer a wealth of benefits to its members. For example, HOAs will collect a maintenance fee from all its members and use this money to handle all the  emergency maintenance and  preventive maintenance of common areas. This could include caring for community amenities such as a reservable clubhouse, swimming pool and spa, and playground or dog park.

Because HOAs make and enforce rules, you can rest assured that your neighbors will make sure to take care of their properties as you provide upkeep on your own. This can help all homeowners maintain the value of their homes, especially in higher-class neighborhoods.

And, finally, HOAs can be a ready moderator for any problems you may encounter with your neighbors. Instead of dealing with conflict yourself, you can simply turn the issue over to the HOA.

Disadvantages of an HOA

In some cases, HOA fees can be high, and you don’t have control over how the money is used. Community improvements or which  property management requests are the highest priority are determined by the HOA.

If you want to make any modifications to your home, you’ll need to work through the bureaucracy of an HOA, and in some cases, the rules can be overbearing.

How to Decide

Before you  make your final decision, you’ll want to understand the fee and amenity structure. In addition, be sure to read the covenant very carefully to see what you are getting and agreeing to, and spend some time talking with current homeowners about their experiences with the local HOA.