Is Joining a Homeowners’ Assocation a Good Idea?
One of the trends picking up steam over the last few years has been that of developed properties. Condo and townhome communities, as well as gated or pre-planned single home communities are popping up all over the country. And many of these communities have a Homeowners’ Association (HOA).
What is a Homeowners’ Association?
A homeowners’ association (HOA) is a group of homeowners that pay fees for upkeep of communal amenities and areas. In some cases, the HOA also takes care of individual yards. Everyone in the development pays a monthly fee to help with the upkeep of such things as landscaping, snow removal, clubhouse, parks and any other amenities that might be included in the development. Obviously, the more amenitites that a development has, the larger the HOA fees will be.
You should also realize that the HOA has specific rules and restrictions. You should know what these are. They can govern how long your grass can be, what sorts of lawn ornaments you have, whether outdoor line drying of laundry is allowed, what kinds of window covernings you have and other things that affect the appearance and feel of the neighborhood. You should check with your real estate agent to see what sorts of HOA fees and rules there are before committing to development.
What to consider before joining the HOA
If you move into a neighborhood with a HOA, you will have to join. Before you make this decisions, consider this list from Investopedia about what to think about:
- Learn the HOA rules.
- Make sure that the home you plan to buy is in compliance with HOA rules.
- Assess the environmental practices (such as fertilizer or type of lawn) of the HOA.
- Think about your temperament.
- Learn about the fees, and what they pay for.
- Get a copy of the minutes from the last HOA meeting.
- Be on the look out for under-management as well as over-management.
- Does the HOA have catastrophe insurance on the building?
- How will HOA fees impact your personal finances?
Some people really enjoy living in a neighborhood with an HOA. But for others, it is a poor fit. Make sure you know what kind of person you are before you commit.
Tags: homeowners association, joining homeowners association, home mortgage loan, mortgage blog,
development, HOA rules, HOA fees
