What you should know before Buying in a Home Owners Association

Make sure the home you want to buy is not already out of compliance with HOA rules

Buying into an existing problem can be a headache, so find out what the rules are and whether you would have to make changes to the home to comply.

They have rules –– learn them!
Just like any other group of people, HOAs can vary significantly in degree of strictness. Some do not demand a lot of their members, while others have a ton of rigidly-enforced rules. Whatever is the case, the important thing is to make sure that you are fully aware of the situation you are entering with regard to mandatory maintenance or other restrictions that may impact your lifestyle.

They have fees
It is paramount that you be aware of the HOA fees, which often amounts to several hundred dollars over the year. You will inevitably find out, but make sure that your aware of it from the very beginning. Also, find out what the monthly dues cover. Full use of facilities or partial use of facilities?

The fees are not set in concrete
Many HOAs essentially function like governments. If in need, they will raise fees. That means that while the monthly fees you will have to pay at the beginning to cover routine maintenance might seem just right, the bill might not be so pretty after the HOA decides to invest in a new amenity or do a major repair/renovation that requires it to generate additional revenue from residents. How are HOA fee increases set? How often do increases occur, and by how much have they historically been raised?

Some people really like them
Some homeowners truly adore their HOA and the sense of community and civic-mindedness that it promotes. They enjoy being active and talking with neighbors about ways to improve their collective space. Many also derive purpose from being active in the HOA and taking on responsibilities within the organization.

They might not be for everyone
Some people really don’t like being told what to do, particularly if it relates to something that they own. Unfortunately, that is kind of what HOAs do. To some, the idea that your neighbors may determine how you take care of your lawn is infuriating.

Rental restrictions
HOAs often put in place rules prohibiting members from renting out all or part of their homes.