Homeowners associations known as (HOAs) are formed by planned communities with single-family homes or multiple units, such as condominiums.
Most HOA rules are well intended and carried out without any problems. In many cases, the rules will actually be more of a benefit than a hassle. Here are some advantages of having a HOA in your neighborhood.
• Nicer Neighborhoods: There may be strict rules about your home’s exterior appearance. Many HOAs facilitate a neighborhood watch, as well, put up a gate around the community, and hire security to monitor the area, which makes it safer overall.
• Higher Quality of Living: Every rule enforced in an HOA is made for the purpose of raising the quality of living. Your neighborhood will be more peaceful, safe, and beautiful because of the rules, which increases your quality of life.
• Free Community Amenities: Many HOAs will use the fees collected each month to build and maintain community areas such as parks, pools, and even recreational facilities. Since the cost is included in your monthly payment, using these services will come at no extra cost to you, and they’ll be maintained to perfection.
• Basic Maintenance: Often, basic maintenance such as plumbing, landscaping, and snow removal will be performed. This reduces your responsibilities and gives you peace of mind if a pipe bursts.
A Few Disadvantages
• Fees: Like every other element of HOAs, the fees differ based on the amenities and services the association will provide. Some can be as costly as $500 per month.
• Constant Maintenance: The rules and regulations that come with HOAs are nothing short of strict; they require you to attend to the maintenance of your home almost constantly. If you don’t have a lot of time to spend on your home’s appearance, and lack the funds to hire someone to take care of it for you, the maintenance alone will be enough to discourage a property with an HOA.
• Increased Neighbor Disputes: Although the association will handle disputes for you, sometimes it will create them. A neighbor might argue that you aren’t following the regulations, or maybe he’ll be mad at you because you called the HOA on him for something else.
• Discourage Renters: There are often restrictions on renting as well. For example, your association may say that only 15 percent of the homes in the community can be rented while the others must be occupied by the owners. This can make it difficult to turn a profit on an investment property.
• Extra Fees: HOAs can also impose special assessments on homeowners when the association lacks sufficient reserves to pay for unexpected repairs on common areas such as sidewalks or parking lots. Aside from imposing penalties on homeowners for breaking the rules, HOAs can also place a lien on a property if a homeowner falls behind on his dues.
Some of these drawbacks may not apply to you, or they may not seem too bad. If that’s the case, an HOA could be a great option.
Still have a question? Call me TODAY,Caron Koteles Riha (248) 379-6651
Caron Koteles Riha is a licensed Real Estate Broker with Real Estate One.
Email, Text or Call Caron at (248)379-6651 or Caron@CaronKoteles.com