If you’re on the hunt for a home to purchase, you’ll likely hear about homeowner’s associations (HOA). A homeowner’s association is a governing body that manages and keeps peace in some neighborhoods. When you move into a neighborhood that has a HOA, membership is mandatory and there are regular fees you are required to pay.
Some people love living in a neighborhood with a HOA and others, not so much. There are definitely advantages and disadvantages of HOA. When considering a buying home, make sure you weigh all pros and cons carefully before making your purchase.
Advantages of a Homeowner’s Association
Community Amenities and Activities
Many HOAs maintain community areas of the neighborhood that all members can use free of charge. This may include parks, pools, and recreational facilities. Some even plan activities throughout the year for all homeowners.
Basic Maintenance
Homeowner’s Associations will take care of basic exterior maintenance of all homes. This includes leave pickup, landscaping, snow removal, trash removal, and pest control.
Mediator for Neighbor Disputes
Have you ever had an issue with a neighbor that was never resolved? That can make living near them pretty difficult. In a HOA, they provide mediators for these types of disputes. Because everyone pays the same fees, everyone gets an equal say in the resolution. This can definitely make living near people much more bearable.
Nicer Neighborhood
Since the HOA takes care of maintaining the exterior of the homes as well as all common areas, these neighborhoods tend to look much nicer. As well, most HOAs implement neighborhood watches that keep the neighborhoods safer.
Disadvantages of A Homeowner’s Association
High Fees
While the fees vary greatly from one HOA to another, they’re usually pretty high and tend to increase every year. Additionally, throughout the year, they may add additional fees for a special project such as repairing all of the sidewalks.
Lots of Rules
Homeowners Associations tend to enforce many rules to keep the neighborhood looking a certain way. These rules can apply to the shape/size/color/material of a fence, location/size/components of a garden, number/type of pets you can own, the height of your grass, exterior decorations, etc.
Increase in Neighbor Disputes
Because of all of the rules and regulations, neighbors tend to complain to the HOA that other neighbors are violating the rules. Alternatively, a neighbor might get angry with you that you called the HOA on them for violating a rule. So even though the HOA can mediate disputes, it also tends to cause more of them.
Discourages Renters
Many homeowner’s associations have restrictions on rentals. Some may not allow it at all while others may say that only a certain percentage of the homes can be rented.
Possible Foreclosure by the Homeowner’s Association
Some homeowner’s associations have the power to foreclose on your home if you don’t pay your HOA fees. Each state is different, so you’ll want to investigate this for your own situation. While it’s rare, it does happen, so it’s something you should consider.
If you are considering purchasing a home that is within a homeowner’s association, get all the details before making your decision. Find out all of the fees and policies before making your final decision.