Understanding homeowner’s associations, real-estate agent explains
Were you ever interested in buying a home to only realize there’s something called a homeowner’s association or HOA fee attached to it?
For starters, why didn’t anyone teach us important life information like this in high school? I was taught chemistry, as if my life depended on it, but I was never taught useful information that I’ll actually use in the real world. Anyway, let’s break down HOA into a few parts.
1. What is a homeowner’s association?
A homeowner’s association is an organization that makes and enforces rules for a certain living community. When you own a home in that community, you must pay the HOA fees and follow their rules.
2. How much is HOA and how often do I pay it?
HOA fees can vary significantly; there isn’t a universal number that applies to all housing. The dues that are paid by homeowners are dependent on the agreement that’s been set in place by the association. You’ll see HOA’s as low as $60 a month to as high at $800 a month. Talk about a huge gap, huh? The frequency of when you pay your HOA is also dependent on the community you live in. If you live in a condominium, townhome or planned community, you’ll more than likely be paying a monthly HOA fee. If you live in a subdivision of single family homes, you might be paying a quarterly or annual fee; it’s all depending on the rules that have been placed by the association.
3. What does HOA cover?
The golden question. You’re paying all this money so you should definitely know where all that money is going. Each association is vastly different and are accountable for certain parts of your property. Generally, though, HOA will cover these basics:
Common area: Shared area within the community like the swimming pool, gym, sidewalks, clubhouse, etc.
Exterior maintenance: Mowing the lawn, replacing your roof and siding, painting the home and keeping the exterior of the property clean and tidy.
Garbage, water and sewer: Some HOA’s will incur this cost as part of their dues; I have to admit, I love when associations include this. You’re paying an arm and leg, so this is the least they can do, right?
4. Pros and cons
As much as HOA has a bad reputation, it also has its pros. Hard to believe? Let me explain. HOA’s can be very lenient but can sway to being more strict — they will tell you what color you’re allowed to paint your home, what flowers can be planted on the exterior and you start to question why you bought a place with an HOA. However, depending on your lifestyle and financial situation, it can be a pro. If you’re someone who wants to be a homeowner but doesn’t necessarily want to deal with all the fuss involved in maintaining a home, this is perfect. If you work endless hours and the last thing you want to do is mow the lawn, well, it’s covered. Let’s say your roof needs replacing and coming up with 20 thousand dollars is impossible, but you sleep restfully at night because you know it’s the HOA’s responsibility to fix it.
Although there are some downsides to having an HOA, it can also have its benefits. It’s all very circumstantial and dependent on your lifestyle. Understanding the pros and cons is important to find the best option for you.
Main photo by Ketut Subiyanto / Pexels
