According to research from the Foundation for Community Association Research, as of 2024, about 75.5 million Americans reside in a homeowners association (HOA) community. This amounts to over 30% of the U.S. housing stock, and it’s only expected to rise after this year. In this article, we’ll cover 10 important things to consider before joining an HOA community.
Community associations, such as HOAs, condo associations and housing co-ops, are self-governing organizations that make and enforce rules for the residents of a community, such as a neighborhood or residential building. They collect fees that go into the upkeep of the neighborhood and amenities.
While homes in HOA communities are common — and tend to be worth 5-6% more than homes without an HOA — they’re not the right choice for every homeowner. If you’re considering a home in an HOA community, here are 10 things to consider.
First, What Exactly Is an HOA?
An HOA is a nonprofit organization of homeowners living in a neighborhood or community. When you buy a home that’s within the purview of the HOA, you’re automatically a member of the association – meaning you have both the perks and the responsibilities. HOAs have different rules, fees, and expectations, but they generally require dues to help the association maintain the community facilities and fund projects. Decisions are made democratically — HOA members elect a volunteer board of directors to run the association on behalf of homeowners.
10 Things to Consider Before Joining an HOA
Now that we’ve covered the basics, here are some important considerations before joining an HOA:
1. HOAs Aren’t Created Equal
HOAs may have similarities to government organizations, but they are private entities with the ultimate goal of preserving property values. They may take the form of residential neighborhoods, condo complexes, townhome communities, housing co-ops, and other managed communities.
When you buy a home, townhome, condo, or other residential property within an HOA community, you will know in advance to make an informed decision. The seller will provide you with all the documentation, including the bylaws and CC&Rs, to evaluate your responsibilities as a member if you buy the property. You need to read these documents carefully.
2. HOAs Offer Value
HOAs want to preserve property values through maintenance of common areas, enforcing rules, and improving quality of life for residents. There are benefits of being part of an HOA, including higher resale value for your home and knowing you have an organization working to keep your community clean, safe, and secure.
3. You Have to Follow Rules
HOAs have a set of covenants and rules that are found in their governing documents. These can be strict or lenient, depending on the HOA, and include rules like:
- Property restrictions, which may include fence height restrictions, approved exterior color schemes, and more
- Vehicle and parking restrictions
- Rental restrictions
- Occupancy limits
- Noise disturbance rules
- Pet rules
- Holiday decoration rules
There’s a bit of give and take here. Some people consider this a drawback of living in an HOA, since they bought their property and want to be able to live as they see fit. Conversely, HOA rules have a purpose and are generally established to serve the majority of residents and protect the property values in the neighborhood.
For example, residents don’t want to meticulously maintain their home next to a property that has a fence in disrepair, overgrown landscaping, and junk all over. A quiet neighborhood may not want parties happening until all hours of the morning or neighbors with loose cats running around or dogs that bark early in the morning.
So it’s critical to fully understand all the rules you are expected to follow before joining an HOA community.
4. There Are Consequences for Breaking Rules
You agree to the rules of an HOA community when you move in, but rule breaking still happens. Most HOAs have penalties for breaking the rules, which can range from a warning letter or small fines to suspension of privileges. In some cases, an HOA may be able to place a lien on your property if you break the rules.
Make sure you understand the consequences of breaking your HOA rules and the appeals process.
5. Understand Your Fees
Before joining an HOA, you need to understand how the money works. HOA members have to pay regular dues that go toward community initiatives. The board determines how much the fees will be based on the anticipated expenses for the year.
HOA fees can vary significantly, based on location, the amenities, the size of the community, and more. An HOA with more amenities in a desirable area may have higher fees than a community without common areas, but that’s only natural.
Along with dues, you may need to pay special assessments, which are used for emergency or unexpected expenses. The HOA governing documents should outline when and how much your HOA can charge for special assessments, which may be regulated by state law.
6. You Have Maintenance Responsibilities of Your Own
If you thought that paying HOA dues will relieve you of maintenance, think again. Though some communities will take care of all of the maintenance, not all do. Your HOA should clearly define what maintenance tasks are the responsibility of the association and what maintenance tasks fall on you.
For example, many HOAs maintain the landscaping in common areas, but you’re responsible for your own yard. Anything related to home maintenance usually falls on the homeowner, and you’re expected to keep your home in good condition with no eyesores like damaged roof shingles, chipping exterior paint, or missing siding.
7. There Are Formal Procedures and Processes
HOAs are structured and have formal procedures and standard processes. You’re expected to follow the procedures as a member, such as going through proper channels to complete home renovations or add freestanding structures like sheds, children’s playsets, or a pool. Processes may be necessary for activities like adopting pets, flying a drone around, or opening your home to short-term rentals.
8. HOAs Come with Amenities
This isn’t always the case, but many HOAs have the perk of amenities that are exclusive to the members of the community. Some examples include communal swimming pools, fitness centers, tennis courts, golf courses, resident clubhouses, dog parks, private parks, children’s playgrounds, and neighborhood gardens.
9. There May Be Community Events
HOAs aim to improve quality of life not just in maintaining your neighborhood but building a community with a sense of belonging for members. This may include social events that allow neighbors to get acquainted and build connections. To some degree, HOAs expect neighbors to socialize and participate, rather than being a loner.
10. You Still Have a Say
The HOA board of directors has a lot of responsibilities in collecting dues, resolving disputes, making and enforcing rules, and building community. HOA community management isn’t simple or straightforward, but it’s all done on a volunteer basis to ensure the community is well cared for.
While HOA board members make final decisions, their power isn’t unchecked. Each member of an HOA community has a voice and holds power. If you’re displeased with how the board is making decisions or running the community, you can attend meetings to stay involved — or even run for a board position yourself.
Weigh Your Decision
Living in an HOA has great advantages, but it’s not ideal for every homeowner. Make sure you weigh your options and understand the costs, rules, and expectations in the community before joining an HOA community by purchasing a home. If it is the right choice for you, you can gain benefits like strong community, higher property values, exclusive amenities, and much more.
Author: Michael Bollinger, a Lexington, Kentucky-based entrepreneur, has left a lasting mark on the tech and software landscape. As the founder of LegFi and File990, Michael launched PayHOA.com in 2018 after Togetherwork acquired his first two ventures. PayHOA is an affordable community management software for homeowner associations that streamlines payments, communication, and vendor management. Beyond his entrepreneurial pursuits, Michael finds fulfillment as a devoted husband and a loving father to his three children.
