Joining an HOA is an important decision. Whether you are thinking of buying a home governed by an HOA, or have the opportunity to add your existing home to an HOA, there can be a lot of factors that should help inform your decision.
While there can be a lot of benefits from being part of a homeowners association, there are also horror stories about HOA bylaws gone wrong. While most HOAs are great, there is the occasional situation where a homeowner can have their home repossessed or face seemingly unreasonable restrictions. Responding to a poorly managed HOA may require getting an attorney. Simply vetting your HOA beforehand is an essential way to avoid a headache down the road.
What are the HOA fees?
Understanding exactly how much you will be paying to the HOA is crucial. Remember that you may be assessed extra fees outside of the norm (known as special assessments). Be sure that you understand the cost and the frequency of the regular HOA fees and ask about any instances where special assessments may be required. Specifically, ask if there are any upcoming assessments or fee increases that might affect your budget down the road.
What do the fees cover?
Along with fees, find out what those fees actually are utilized for. HOAs should be a benefit to a homeowner, be sure that you clarify what services, amenities, and maintenance are included in your fees. For some communities, this can include landscaping, community pools or gyms, and neighborhood security features.
What are the HOA rules and restrictions?
Some HOAs are fairly flexible, while others are very restrictive. Understanding the HOAs rules and regulations before you join is key to deciding if the HOA rules fit your lifestyle goals. If you have plans to rent out your home, host long-term guests, or you would like to be able to remodel your home at any point, these can all conflict with your HOA rules. HOA rules can also govern things like pets, noise, architectural additions, outdoor decorations, exterior paint choices, and many more nuanced aspects of homeownership.
The benefit is that these restrictions can ensure that every home in the neighborhood is comparable and can keep home values high. However, this can come at the cost of sacrificing some autonomy as a homeowner. It’s up to you to fully understand your potential HOAs rules before taking the leap.
