Even though most of us associate Home Owner’s Associations (HOAs) with condos, they can also exist in large subdivisions of single family homes. HOAs consist of a defined management group with rules and regulations in place to protect the value and usability of both the property and shared spaces. An HOA also ensures they are properly maintained. It’s important to consider the pros and cons when considering a home in an HOA.
Pros
Shared spaces and amenities: Pools, workout facilities, common hallways, recreational and green spaces, or clubhouses can all be part of an HOA community. All owners can enjoy these spaces and amenities affordably because of shared expenses (HOA fees).
Freedom: Most of the time, the shared spaces and even a portion of your personal spaces are maintained by the HOA. Having the lawn care, landscaping, and snow removal taken care of frees you up to do the things you love.
Property value: While you would carry the responsibility to upkeep your home’s interior, often an HOA is primarily responsibly for upkeeping the outside. This can help maintain the home’s value over time. HOA regulations also help create a cohesive look both in landscaping and architecturally.
Cons
Association fees: Sometimes fees cover some utilities, as well as many of the pros just mentioned, but be sure to find out what is covered. In this reigion in Iowa, most fees are quite reasonable, but some are just outrageous. Be aware that as things cost more in the future, fees will most likely also increase.
Potential for a special assessment: A special assessment is an expense outside of the expected and is not covered by the HOA’s reserves or insurance. Some things you simply cannot predict, as it is with any homewoner, so there are times it is unavoidable. Review the bylaws and look over the association’s financial records.
There are rules: You will be held accountable to the rules of hte HOA. The rules are there to protect you and property values and they apply equally to all the other owners, so make sure you can live with them.
So What’s the Verdict on HOAs?
The answer will undoubtedly depend on each buyer’s particulat situation. According to the Community Associations Insitute, 63 percent of HOA community residents reseponded positively to thier experience. Essentially, the pros of preserving property values, offering amentities, routine landscaping and other benefits of HOAs are worthwhile for more owners in such communities.
