It may not be the first thing you think about when you’re looking to buy a home, but it is a question you may find yourself asking: Do I want a home that’s part of a homeowners association?
A homeowners association is a planned development of houses, often nestled in a gated community or a neighborhood of condominiums or townhouses. But there’s more to it than a planned development (lots of neighborhoods are planned). It’s kind of like joining Costco or a country club. There are fees involved and rules to follow.
Many HOAs are lovely places, and it may seem like a no-brainer to live in one, if you’ve ever admired the well-manicured lawns or envied a development’s swimming pool or clubhouse. But HOAs aren’t for everyone.
[READ: HOA, POA, COA: What’s the Difference in These Homeowner Associations?]
Cons of HOAs
HOAs have a lot of rules. The idea behind the rules is to keep everything looking a certain way.
“HOAs can have many rules and regulations that the homeowners are bound to,” says Gabriella Siciliano, a real estate agent with Hunt Real Estate ERA in Phoenix. Siciliano lives in an HOA.
Generally, Siciliano says, the HOA rules have to do with the appearance of homes, yards and common areas within that community.
Some people may find those rules confining while others may not — if you want to paint your home in a pink polka dot pattern, an HOA probably isn’t for you. However, Siciliano says that when you’re in an HOA, because of the rules, “you can almost be guaranteed that your community will be well maintained and look aesthetically pleasing.”
Ultimately, Siciliano says, that will help with your home’s resale value.
Property values are a big selling point of an HOA, says Dino DiNenna, a real estate broker with Hilton Head Realty on Hilton Head Island, South Carolina.
“HOAs prioritize high curb appeal, well-kept homes and a safe area through rules and regulations, eventually raising property values,” he says.
That said, rules aren’t uniform across every HOA, says Eric Bramlett, a real estate agent and owner of Bramlett Residential, a brokerage in Austin, Texas.
“People should really research the specific community they’re considering and get all the details on financial obligations and governing guidelines,” Bramlett says. “Abiding by the association’s rules isn’t always easy.”
He points out that an HOA may have rules governing everything from outdoor projects to parking regulations to pet policies.
An HOA in Frisco, Texas, recently made news over a new rule stating that homeowners could be fined $500 if they didn’t park their cars in their garages, with the door closed, instead of on their own driveway.
Another HOA in Boulder, Colorado, has made headlines for not allowing dog walking in the neighborhood.
These are extreme examples, perhaps, but it is important to have an understanding of the HOA you’re joining. There’s a pretty simple fix to your curiosity over whether the rules are too onerous. Find out what they are.
[5 Home Improvements That Can Increase Your Property Value]
HOAs can be expensive. The national average for an HOA is $191 a month, according to the U.S. Census Bureau, with many homeowners paying between $200 and $300 in monthly fees.
But it can vary more than that, Siciliano says, depending on where you live and what type of homes are in the association.
“In Arizona, I’ve seen them range from $95 a month to over $1,000 a month,” Siciliano says.
You also need to be aware of what are called assessments, sometimes called special assessments. These are one-time fees homeowners are sometimes asked to pay to cover unplanned expenses. For instance, perhaps the homeowners association insurance bill has shot up, as has happened in some communities, and everybody will need to pitch in. Maybe the community swimming pool or sidewalks need repairs, or you may live in an condo or co-op building where the elevator needs fixing.
That said, Siciliano has a possible fix for homeowners suddenly faced with a hefty bill to pay: “Many homeowner insurance policies actually have special assessment coverage. If your special assessment is higher than your deductible, it would be worth filing a claim with your insurance company to help them offset the out of pockets costs.”
Your homeowners’ insurance may call it “loss assessment coverage.”
Pros of HOAs
HOAs can add to your quality of life. If you have a quality homeowners association and neighborhood, you’re probably getting a lot for what you’re paying in HOA fees.
“One of the many advantages of living in a HOA neighborhood is having access to the association’s many services and facilities,” DiNenna says.
“These services could include lawn care, snow removal, garbage pickup, pest control, clubhouse, pool, gym, playground, tennis court, golf course and other facilities, depending on the kind and size of the HOA,” DiNenna says. “All of these characteristics add up to a higher standard of living.”
DiNenna also says that the professional help you’re paying to maintain your home can’t be overstated.
“The HOA handles a large amount of exterior maintenance, whether you live in a planned community of single-family homes or a condominium complex,” he says. It’s incredibly convenient, so say goodbye to concerns about taking care of landscaping, pest control and grass mowing.”
HOAs are very community oriented. If you’ve never really known your neighbors and wished you did, that’s another reason to appreciate an HOA. There are certainly plenty of hermits in HOAs, but if you want to get to know your neighbors, you probably have better odds of doing so in a homeowners association. Aside from having access to community gyms and swimming pools, many neighbors have organized block parties and gatherings. HOAs have a reputation for being quite social.
“I’ve gotten to know my neighbors well,” Siciliano says. “Many of us are very involved in our HOA members meetings, and we like to connect with and help one another.”
Bramlett also says HOAs are good environments for extroverts or community-minded residents. “Folks get to know their neighbors through organized social events,” he says.
Bramlett even feels HOA fees and special assessments, while not fun to pay, have an upside. “This shared responsibility for the community definitely fosters a sense of belonging,” Bramlett says.
If you join your HOA board, or at least attend meetings, you’ll likely get to know your neighbors that way, too.
There can be as many reasons to move into an HOA neighborhood as there are not to do so. It comes down to your personality and priorities as a homeowner. Asking questions, maybe even of your potential new neighbors, and gathering information will help you make the right decision.
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What To Expect If Your Home Is Part of a Homeowners Association originally appeared on usnews.com
Update 03/08/24: This story was previously published at an earlier date and has been updated with new information.
