The pros and cons of homeowners associations
When you prepare to buy a house, you must also consider whether or not you want to be apart of a neighborhood with a homeowners association (HOA). As of 2018, there were an estimated “347,000 community associations in the U.S. and 26% of the population resided in areas where there were community associations” (“Homeowner Association (HOA)”). HOAs differ by neighborhood, meaning there’s no way to fully judge whether your prospective HOA will fit the following stereotypes. But, it’s worth considering the general pros and cons:
Pros of an HOA
Some HOAs run amenities for the neighborhood, like clubhouses, pools, parks, or security gates. Maintenance for the shared space in the neighborhoods, like snow removal, is also taken care of by the HOA and its dues. Check to see if your prospective neighborhood has these amenities and who cares for them. Are they well-used? In good condition? Secure? Basic utilities, like sewage, trash, recycling, and gas are also included in HOA fees, which lowers your other bills. And some, (but not all) HOAs will take care of your lawn as well!
HOA’s can mediate conflict between neighbors and enforce rules so you don’t have to. The HOA also upholds a level of property management and grooming to keep the neighborhood looking good and property values up, which will benefit you when you want to sell your house.
It’s a way to meet neighbors, volunteer your time, and serve the greater community. HOAs often put on group events as well, which fosters a sense of comradery and neighborliness.
Cons of an HOA
HOA dues can be up to a couple of hundred dollars a month, depending on the location.
You will be limited in what you can do. Want to paint your house pink, or add on a new porch, or change up the lawn? You’ll have to check with your HOA, as they usually have rules on what homeowners can and can’t change about a home’s appearance.
Since the HOA is run by volunteers and a board of directors, things may be done amateurly and slowly.
In the end, it’s a personal choice whether you should avoid a neighborhood with an HOA or not. If your dream house has one, and you’re a team player, it could be a great fit. If you buck at oversight and don’t want interference from neighbors, it’s probably not right for you.
