If you’ve been searching for a new home you may have come across the term HOA (homeowners association) quite a few times. What is an HOA? What are the benefits? And why does it cost? Deciding whether you want to be a part of a community with an HOA is an important decision when searching for your new home.

We put together a list of the pros and cons of HOA’s to help you better understand and make an informed decision for your next move. 

What is an HOA?

A homeowners association is an organization within a community that is responsible for enforcing rules and regulations, managing and maintaining the overall appearance of the neighborhood and value of the properties in the community. 

Keep in mind not all neighborhoods have HOAs, and the rules and regulations of an HOA  varies from community to community. Think about what’s important to you in your new neighborhood as far as shared amenities, such as parks, swimming pools, and tennis courts etc. 

It’s important to review, in detail,HOA rules, regulations and what services are included before you decide on your new neighborhood. There are ways to view HOA information and documents online, you can also call association managers or ask your potential neighbors about the community HOA.

Here are some potential benefits of being a part of an HOA:

Shared Amenities: You’ll have access to shared amenities like parks, swimming pools, tennis courts, and community centers that might be costly to maintain on an individual basis.

Property Values: The HOA takes care of the appearance and value of the neighborhood by maintaining common areas, such as landscaping, parking lots, and sidewalks.

Community Involvement: You’ll have more opportunities to get involved in your community, usually through social events or volunteer opportunities.

Dispute Resolution: The HOA can mediate disputes between neighbors, helping to maintain a peaceful and harmonious community.

Consistent Standards: The HOA ensures that all properties in the community adhere to consistent standards, which can help to prevent eyesores and maintain property value.

Although the pros of having a HOA have proven to be beneficial for many communities, there are a few drawbacks. Joining an HOA means surrendering some control over your property.

Financial burdens

Having a HOA can put a strain on your budget. Homeowners are required to pay regular fees to cover maintenance, repairs, and other community expenses. These fees can vary widely and may increase over time.

Limited property control

While rules are put in place to maintain community standards and aesthetics; homeowners may find themselves unable to make changes they desire or having to seek approval for even minor alterations. The association enforces rules and regulations that may restrict certain activities, exterior modifications, or even renting out your property. 

At the end of the day all homeowners and soon to be homeowners must make the decision that will work best for their needs, lifestyle and budget. It is essential to carefully consider the pros and cons of an HOA before purchasing a property. Remember to review the governing documents, attend HOA meetings, and understand the association’s history and financial health to your benefit.