Is Homeowners’ Association Living Right for You? Part 1 – The Roses

Have you ever thought about whether a homeowners’ association (HOA) is the right fit for you? When people find the right home, often they do not stop to think about how HOAs affect the purchase of the home, and how HOA living will affect them.  Today, let’s talk about some of the pros of being part of a homeowner’s association.  Next week, we will look at the other side.

First, let’s understand what an HOA is. An HOA is a governing structure for a planned community.  While there are technical differences between an HOA and a condominium association, for the purposes of this article and next week’s follow-up, when we refer to an HOA we mean a planned community, regardless of whether it’s a single-family home community, condominium association, townhouses, or rowhouses. The HOA board (and HOA manager, if the HOA has a management company) maintains community standards, sets rules, hires vendors, paves or repairs roads (in cases where the roads are not the municipality’s responsibility), completes all other repairs they are responsible for as per the HOA documents, handles disputes, and much more. The exact scope of the HOAs responsibilities various from association to association, so it is important to read any agreements or paperwork provided before proceeding with your purchase.

Being a part of an HOA often has several benefits.  You may not need to worry about maintaining things outside your property like mowing lawns, landscaping, pest control, trash pickup, common area or hallway cleanup, lobby or entrance area maintenance, changing bulbs outside, snow removal, cleaning and painting building exteriors, common or exterior paint, roof repairs, etc.  Again, what your association takes care of will vary from association to association; these are just some examples.

If you face problems with your neighbors, the HOA may even assist with conflict resolution. Simply report the issue to the board and request assistance.  While all boards do not get involved, many associations step in to mediate before things get messy.

By maintaining standards throughout the association, HOAs may help increase home value. If the HOA penalizes homeowners for things – such as parking broken down vehicles outside, not completing home or yard upkeep, putting up offensive signs, etc., home values in the area are more likely to rise.  The HOA may be handling all the landscaping, hanging holiday lights near the entry areas, providing seasonal decorations, and other exterior maintenance.  People generally like seeing well-maintained communities.

The HOA may also offer amenities. Benefits like swimming pools, tennis courts, playgrounds, gyms, walking trails, and party rooms are not uncommon. These amenities, when available, are typically private to community members and the HOA does the upkeep of these facilities.

It sounds amazing right?  Like a bed of roses.  They are taking care of everything and providing all kinds of nice-to-have services.  I mean, what is the likelihood that you would have a pool and a tennis courts and a playground (not to mention other kids to play with) all in your own backyard otherwise?

Stay tuned for the flip side next week.