When you’re in the market for a new home, you may not consider the benefits and drawbacks to an HOA community. But it’s an important factor to discuss with your family, realtor and all those walking through the home buying process with you.

Benefits of HOAs

So the next question is: do the benefits of HOAs outweigh the cons? Let’s see.

Especially in larger cities where the pace can be quicker, many young families and retiring baby boomers are seeking HOA communities with more amenities. Some of these amenities include play areas, dog parks, outdoor recreation options, community classes, environmentally friendly amenities, and other technological conveniences. Recreation options include: hiking and/or biking trails around the property, sports facilities like basketball, tennis or volleyball courts, or outdoor fitness stations.

Living in an HOA community also means you have fewer responsibilities. Your maintenance costs will be shared with others in the community, landscaping is generally taken care of, and other amenities like a laundry room, trash services, etc are often on the shoulders of the HOA to take care of.

HOAs are also notorious for keeping up appearances of their properties - beautiful landscaping, clean property, etc. Ultimately - your neighborhood will look good!

Perhaps a lesser known perk, many HOA residents share that living in an HOA community allowed them to get to know their neighbors easier - whether just in passing, or because they’re part of the HOA board together. Plus, if you have issues with your neighbors… you’ve got a built-in mediator!

Drawbacks of HOAs

HOAs do offer a few drawbacks, though. While they are minor considerations, they should be thought through if you want to go the HOA route.

Unfortunately, an HOA can foreclose on your home or spring random assessments on you with little warning as well. They may limit your ability to rent your own unit in a sublease situation, or on vacation sites like Airbnb or Vrbo.

Your hands will be somewhat tied with unique requirements and restrictions on updates, alterations etc - basically what can be done with your unit is not entirely up to you anymore.

A rarer possibility is being victim of a “rogue” board member who rides rules strictly, or whose personality can make life in the community more challenging.

Fiscal crisis? The HOA’s problems become your problems, too. Be prepared to be hit with fee hikes, and other financial responsibilities.

So with these pros and cons of HOAs in mind, how do you make a decision? Is it worth it for you to get into bed with an HOA that might not have your best interests in mind? Or will living in an HOA community compliment your lifestyle and save you time?

We recommend a long hard look at your lifestyle. What do you need most right now: time? freedom? equity?

References:

https://www.luxuryrealestate.com/blog/2018/02/16/15441-pros-and-cons-of-an-hoa
https://www.allstate.com/blog/homeowners-associations/
http://blog.rismedia.com/2015/5-pros-and-5-cons-of-homeowners-associations/