If you’re purchasing a house in a planned community, gated colony or apartment complex, chances are good that you’ll be greeted by an opportunity to join the Homeowners Association (HOA). An HOA is a members-based organization — usually run by residents or managed by an “industry professional company” — that manages shared spaces, maintenance and community rules. While plenty of homebuyers like the perks that come with an HOA, some consider it just another expense or limitation. If you’re are planning to purchase a property, there are several things to understand about HOAs and if they will impact your plans.
What is an HOA?
A Homeowners Association is a group managing and maintaining common areas of a housing community or society. Such could encompass a garden, swimming pool, gym, parking lot and security. A homeowners association may charge its members a monthly or annual fee that goes toward several purposes, including maintenance and other community costs. The HOA also establishes regulations that residents must abide by in order to maintain a well-run community.
HOA Living – The Pros
1. Well-Maintained Spaces
HOAs make sure lawns, playground equipment, swimming pools and other common grounds are clean and well-maintained. This has a positive influence on the quality of life and keeps the area attractive.
2. Increased Property Value
If the neighborhood is well kept, it’s not uncommon to see homes in HOA-managed areas sell for more. Buyers are attracted to a clean and secure and well-organized neighborhood.
3. Shared Amenities
And residents can access amenities such as gyms, play areas, community halls and swimming pools — without the burden of building or maintaining them on their own.
4. Rules for Order
HOAs establish regulations to prevent problems like loud noises, improper trash disposal or unauthorized building. This is used to keep peace and order in the vicinity of neighbours.
5. Security and Safety
Many HOAs provide for security personnel, security cameras and controlled entry. This provides an added level of safety for families and kids.
The Cons Of Living In HOA Community
1. Additional Fees
Living in an HOA community comes with the responsibility of paying regular dues. These costs are NEVER low, and may increase the longer you stay.
2. Strict Rules
Some HOAs have rules on what colour you can paint your house, whether you own a pet or how you utilize the land. This can be a restriction for homeowners who seek true autonomy.
3. Risk of Mismanagement
If the HOA committee is not transparent or resourceful, money can be misappropriated and residents are cheated of their services despite paying fees.
4. Limited Flexibility
If you want to alter your home or rent it out, the HOA might have rules that restrict what you can do. This can lead to disputes between the owners and the association.
5. Legal Issues
HOA disputes can become legal issues. It can be a headach for homeowners to have conflicts like this.
Trying In deciding whether or not to invest in a home within an HOA community?
Whether or not you want to live in an HOA community is a matter of personal lifestyle. If you appreciate a clean and secured community with amenities that are included among the residents, HOA could be an ideal choice for you. “If you are interested in unrestricted use of your home and do not want to pay additional fees, HOAs could be limiting.”
Before buying, always investigate the HOA rules, fees and history of management at any home. If you can, talk to people who live there now. This will allow you to determine if the community is right for you.
FAQs:
Q1. What does an HOA fee cover?
Common areas, security patrols, landscaping, trash pickup and shared facilities are generally maintained with the proceeds from HOA fees.
Q2. Do HOA fees exist in every place?
Not really, it depends on how many homes you have in your community and the amenities. Neighborhoods that offer such luxurious amenities tend to charge higher fees.
Q3. Can I refuse to join an HOA?
If you purchase a home in an HOA community, membership is typically required. You cannot opt out of it.
Q4. Are there HOAs in place for apartments only?
No, apartments complexes and gated colonies can also have an HOA or even a villa community.
Q5. What can I do to avoid HOA issues?
Read the rules carefully before making a purchase, go to HOA meetings, and be informed about how money is being spent.