Is a neighborhood with a Homeowners’ Association for you?

A homeowners’ association, or HOA, is an entity that creates and enforces rules for a community and collects monthly or annual fees. A HOA is a non-profit institution that is made up of homeowners that may or may not be related to a management company. The main purpose of the HOA is to maintain a consistency among the homes in the area to keep property values stable. Know before you enter into a purchase agreement if there will be a HOA involved.

Some of the negative aspects of a HOA include that they may be poorly managed. They are typically not for profit and because you are paying dues and not for their services, there is little recourse for you. HOA’s are typically volunteers with other jobs who cannot give their full time to regular HOA concerns. HOA’s can have the power to force you into foreclosure of put a lien on your home if you do not pay your dues in time.

If you want to rent or sell, you may need the HOA’s approval when choosing your occupant, which may affect moving or renting in a specific timeline. Days or times the new occupants can move in as well as the setting of your rent price can all be regulated.

HOA’s can dictate your landscaping choices, including how you trim your hedges, mow your lawn, and which flowers you can or cannot plant. They can tell you if you can or cannot have certain exterior colours, basketball hoops, swing sets, solar panels, clotheslines, satellite dishes, and pets.
With all of these restrictions, why would someone choose to live somewhere with a homeowners’ association? Because while all of those restrictions apply to you, they also apply to your neighbours. No more garden gnomes or car parts on the lawn, no overgrown weeds and bushes, no decrepit and broken appliances on the back porch for months at a time and no “artistic” exterior decor choices.

HOA’s can provide shared tennis courts, pools, gyms or walking paths that would ordinarily not be affordable for many homeowners. Each home remains presentable and property values do not decline, and sidewalks, street signs and the community landscaping are all maintained propertly.  Giving up a few flexibilities when it comes to your choice in the way your home looks can be a small price to pay for the benefits of a HOA, or it can literally be a large price to pay if there are high monthly fees. Research the HOA if you are moving into a community governed by one, and talk to neighbours to learn about their previous experiences, good or bad.