Homeowners Associations (HOAs)

Key Takeaways

Key Functions of HOAs:

• Maintenance of common areas and shared amenities (e.g., pools, clubhouses, gyms).
• Provision of services like trash removal, snow shoveling, and lawn care.
• Enforcement of community aesthetic standards, such as paint colors and yard decor.

HOA Fees:

• Typically range between $200 and $300 monthly, varying with the level of amenities offered.
• These fees are usually covered by landlords to prevent potential foreclosure by the HOA due to unpaid dues.

Considering Properties within HOAs:

• Potential buyers should examine the HOA’s fee schedule to understand historical increases, which could impact long-term investment viability.
• Engaging with the HOA through meetings and conversations with current property owners is advised to gauge the organization’s operations and community satisfaction.

Landlords and HOA Regulations:

• Landlords must ensure their lease agreements align with HOA rules to avoid conflicts, such as discrepancies over pet policies.
• Benefits provided by HOAs, like maintenance services, should be highlighted in rental listings to attract tenants.

The Verdict on HOAs:

• While HOAs can offer valuable services and maintain community standards, entering into an HOA agreement without thorough research is risky. Proper due diligence, including reviewing the HOA’s fee history and regulations and ensuring alignment with lease terms, is crucial for landlords to make informed decisions. Ultimately, an HOA can be beneficial if managed well and if the fees are justifiable by the services provided, contributing positively to the rental experience for both landlords and tenants.