HOA’s: All About Homeowner Associations

I’m sure we’ve all heard the horror stories of HOA’s. In this post we’ll go over what an HOA is, how they work, and look at some pros and cons of them.

So what is an HOA, and what does it do? An HOA is a Homeowners Association. They exist to be the governing structure for a planned community. This can include developments like single-family homes, condominiums, or townhouses. Basically, if you’ve ever lived in rental property, consider an HOA like a landlord or property manager. They are an entity that takes care of certain features to maintain the community in exchange for a fee — and you have to follow certain guidelines.

Let’s start with some pros of HOAs:

1. Make someone else take care of the lawn

Often your HOA handles a lot of exterior upkeep. You won’t have to worry about mowing the lawn or doing landscaping. Trimming bushes or trimming trees, shovelling, and so on is typically taken care of by the HOA. Some other items covered by HOAs may include Heating and air-conditioning systems, electrical systems, plumbing, lighting, elevators, and security systems in common areas. Repairing roads, roofs, walls, and building components (particularly in a condo complex). Trash pickup, snow removal, cleaning and painting building exteriors,and painting and cleaning common interiors, including floors and walls

2. You could sell for more down the line

If you own a single-family home under an HOA, you may be able to get more resale value out of your home versus non HOA homes. Part of the reason for this is because of conformity in a planned community: minimum square footage for homes, certain styles of homes, and certain restrictions, such as not allowing livestock in a residential neighborhood or abandoned vehicles in driveways.

3. Cut down on those bills

All HOAs are different, however one cost frequently included in their fees are utilities. HOAs will often take responsibility for basic water and gas, as well as city services such as sewer, trash, and recycling. Again it varies, so make sure you understand what your HOA fees cover but often they can help cut down on the number of bills you pay each month.

Next we’ll look at the cons and this is where most of those horror stories come from.

1. The fees

Sometimes called dues, HOA fees are mandatory — and they can be expensive. In addition to maintenance and upkeep, these fees pay for employees who work for the HOA, as well as money for a reserve fund, typically used for unexpected expenses and emergencies, such as a flood, hurricane, or wildfire. While they may cover certain aspects of your bills, you still need to be wary of the fees and just how much value your’re receiving from them.

2. The Guidelines

HOAs have strict guidelines, particularly about homes’ exteriors. Some HOAs will have an approved exterior paint color palette that must be used. Residents also receive a heads-up about some common violations of deed restrictions like a garbage can in view of the public or a neighbor, unkempt conditions such as mildew or peeling paint on a home or mailbox, having a pet off its leash or not picking up after a pet or having a dirty driveway or sidewalk.

3. Rules, rules, rules

That limited personalization ties into the overall aspect of following an HOA’s rules. You might not mind abiding by a list of paint colors or how many vehicles you can park in your driveway, but other rules you may encounter could be the dimensions of your fencing, how tall your grass can grow,

what type of fertilizer or sprinkler system you can use in the yard, the size of any garden you’d like to have and what can be grown,the number of pets you can have, as well as the maximum amount they can weigh. Those guidelines help with the overall property values, but can also drive residents away.

It is hard to know if you’ll be able to live in an HOA but your bets tool is your realtor. Your best move is to work with an agent who knows the ins and outs of any potential HOAs and is always on the lookout for their clients best interest. Here at Jump Realty, all of our agents put their customers' needs at the forefront of their work. They’ll give you honest advice on what course of action is best for you in their professional opinion. All of our agents pride themselves on putting their clients' needs above all else. With offices in Windsor, Tecumseh, Kingsville, and Chatham, no matter where you are a Jump agent is ready to help. Please contact us for any housing needs and let us give you a better real estate experience!