When you’re searching for the perfect new home for you, there are a lot of things to consider: size, location, number of bedrooms, age of the home, etc. You’ll also need to think about whether you’re open to living in a neighborhood or condominium that maintains a homeowners’ association, or HOA. Here’s what you should know about some of the pros and cons of homeowners’ associations:
While an HOA isn’t for everyone, there are a few benefits that many association members enjoy. These include:
Shared maintenance costs. When it comes to caring for common areas and shared walls, roofs, outdoor spaces, etc., you can count on the HOA to manage this. This means that rather than having to pay for these fees by yourself and out of pocket as you would if you lived in a single-family home, costs and responsibilities are shared.
Strong sense of community. Homeowners’ associations often maintain a strong sense of community amongst those who live in a neighborhood/development/building. HOAs sometimes host association events and get-togethers, and members attend association meetings. There is often a sense of community based on the collective interest in maintaining a property .
Less work for you. Another benefit of being part of an HOA is that there is less work for you. Rather hike than mow the yard on the weekend? The HOA will take care of that—and much more—for you.
As many benefits as there are to HOAs, there are also some downsides, too. Some disadvantages of an HOA include—
Paying HOA dues. Most people don’t love the idea of forking over hundreds or thousands of dollars a year to an HOA. Remember, though, that this money does go to pay for shared spaces and community improvements and maintenance.
Rules to follow. Another downside is that many HOAs have rules that members are required to follow. For example, there may be a rule about how many pets are allowed in a unit, or what color window coverings are allowed.
Potential financial woes. Finally, keep in mind that not HOAs are well-managed and some may be insolvent. If an HOA doesn’t have enough in reserves, you could be facing a special assessment in the event that it needs to pay for something, or you could even have trouble selling your place or getting a loan in the future.
