Are you considering purchasing or renting a house in an HOA? The property may check all the boxes—great location, excellent schools, a big backyard, a cozy living room, but you may still be hesitant. A Homeowners Association, or HOA, is a common feature in many communizes. HOAs often receive negative press, and it seems like nobody has anything nice to say about them. But are they really as bad as they’re made out to be?

Why Do HOAs Exist?

Ask someone why an HOA exists, and they might tell you it’s just a way for one self-appointed “president” to impose their will on everyone else. While this can happen, it’s not the true purpose of an HOA, nor is it how a well-run HOA should operate.

The primary goal of an HOA is to establish a self-governing organization in “common-interest” communities, where homeowners collectively pay fees to maintain and enhance the neighborhood. This might cover the upkeep of streetlights, a community pool, a playground, or even a golf course.

HOAs also enforce certain standards within the community, such as maintaining lawns, regulating street parking, setting house color guidelines, or enforcing noise curfews. These rules are often the source of contention.

Pros of an HOA

Despite their bad reputation, HOAs can offer several benefits to homeowners and renters, and can even help increase and maintain property values.

Amenities HOAs often add value by providing amenities like parks, pools, tennis courts, or walking trails. In larger neighborhoods, these can be maintained for a relatively low monthly or annual fee.

Garage Sales While individual yard sales are less common than they once were, many HOAs organize Neighborhood Garage Sales. These events encourage everyone in the community to participate, drawing more potential buyers and providing a lucrative opportunity for sellers.

Neighborhood Standards Depending on your perspective, this can be a positive or a negative. HOAs can set rules that ensure a consistent standard of living, such as noise curfews, parking regulations, and lawn maintenance. Additionally, HOA fees often cover road maintenance, streetlights, security, and public landscaping.

Sense of Community A well-managed HOA can foster a strong sense of community. Some HOAs sponsor events like summer barbecues, back-to-school activities, or golf tournaments.

Cons of an HOA

While not every HOA will have issues, some common drawbacks include:

High Fees HOA fees can be expensive, particularly in neighborhoods with extensive amenities like golf courses, swimming pools, and fitness centers. These fees can run into hundreds of dollars per month.

Limited Applicability You might end up paying for amenities you don’t use. For instance, if you never golf, paying $50 a month for the upkeep of a golf course might feel like wasted money.

Social Cliques Some HOA boards can resemble exclusive social clubs, where decisions are made by a close-knit group of friends who prioritize their own interests. This can lead to changes that benefit only a few while ignoring the needs of the broader community.

Size Issues In small neighborhoods, HOA fees can be high because the costs are divided among fewer residents. In larger communities, it can be difficult to have your voice heard, making the HOA feel distant and unresponsive.

Restrictions on Rentals Some HOAs don’t allow homeowners to rent out their properties. While this is more common in upscale neighborhoods, it’s something to consider if you’re thinking about renting out your home in the future.

HOAs and Rentals

If you are allowed to rent out your home in an HOA-governed community, there are a few important things to keep in mind:

Fees HOA fees shouldn’t be passed on to the renter. You might increase the rent slightly to cover these fees, but it’s usually better to handle them yourself.

Rules Compliance Renters must follow all HOA rules, which should be clearly explained before they move in. There can be no exceptions, even for renters.

Access Codes Renters often won’t receive their own access codes for gated communities or shared amenities like pools. You may need to provide them with your code, especially in larger neighborhoods.

 

HOAs may have a reputation for being difficult, but they often provide more benefits than drawbacks. While there are some horror stories, a well-run HOA can significantly enhance the quality of life in a neighborhood. When considering a home purchase, an HOA shouldn’t be a deal-breaker unless you’re certain that you’re not willing to abide by the community’s standards.

If managing these details feels overwhelming, you might consider hiring Conquest Property Management, who can assist with rent collection, maintenance, and evictions, where necessary. Please call our office for more information at 903-595-0000.