Homeowner’s Associations have grown in number especially with homes built within the last 10 years. Some think that’s great and others have discovered the downfalls of living under the thumb of their HOA. So let’s address the possible pros and cons. Then decide whether you want to live with the extra cost and rules.
Pro: Because of the rules established by your Homeowner’s Association, you can be pretty assured that your neighborhood will be well maintained. Some typical items under the HOA’s control are: Keeping your lawn manicured; Garbage cans must be put out after a certain time and brought back in within x number of hours after pickup; Restrictions on street parking or leaving boats/trucks in the driveway; Limitations on exterior home paint colors creating a uniformity within the neighborhood.
Pro: Many of your upkeep costs are shared by all members of the HOA ie: Common lawn areas and entries of the subdivision; Community snow removal which can definitely be a plus after big snowfalls guaranteeing that your streets will be plowed and you can get out and to work or the kids to school; Upkeep of community amenities like pools, fitness center, clubhouse party rooms, social areas, trails, boat docks, playgrounds, parks, etc; Newsletter distribution with updates, announcements and community events; some even offer 24 hour emergency maintenance!
Pro: Community Amenities might be included in your fee providing activities for your family that you might otherwise have to pay seasonal fees or costs to take advantage of ie: Pool, Clubhouse, Fitness Center, Social Activities like game nights, cards, billiards, tennis courts, etc.; Parks, Trails, Kid’s pools and playgrounds; Manned and unmanned gated entry to the subdivision and in some cases Security Patrol as well.
Pro: By participating in the HOA ( by joining the board or participating in community sponsored events) you have the opportunity to meet and get to know more of your neighbors, which can be a real plus if you’re new to the area.
Pro: In the event you and your neighbor find yourself disagreeing about something that pertains to your properties, you can ask your association to mediate by filing a grievance with your HOA Board or your Management company.
Con: HOA Dues. When determining how much home you can afford, you will need to definitely factor in your monthly dues + any reserve funds required in the event there are major repairs necessary in the neighborhood. You DO NOT want to get behind on your HOA fees as they have the ability to put a lien on your home and even foreclose in spite of the fact that your mortgage is current.
Con: If you purchase a home and then decide you want to expand on it say with a screened patio, or a deck or even in some cases planting flowers, you may have to get permission from your board to do so and they very often say no so even though you own your home, you don’t own what you do with it.
Con: If your HOA is poorly managed and gets into financial problems, it could bring down the values of all the properties in the subdivision and even affect your ability to get a loan on your home if you’re trying to refinance your mortgage or take out an equity loan.
Con: You have to follow the rules even if you don’t agree with them. You can petition to try and get the rule changed but will have to live with the result even if it’s not in your favor.
The point is, HOAs can be very very good BUT they can also be very very bad. Before you purchase a home, condo, townhome that lives within an HOA, take the time (and it will take time) to read the entire bylaws. It will be time well spent so you can make an educated decision on your true dream home!