Pros and Cons of a Homeowners Association (HOA)

To many property owners, a homeowners’ association (more commonly called HOA) is like a gift from heaven. On the other hand, some homeowners see HOAs as limiting their freedom to utilize their property as they see fit. 

The truth is that, like most things in life, there are pros and cons to living within HOA guidelines. Today, let’s examine the benefits—and the drawbacks—of homeowners associations.

What is an HOA?

Before diving in, let’s establish a clear definition of what an HOA is and look at what it does for the neighborhood. 

Your homeowners’ association is a legal entity that passes and enforces rules for properties within a condominium or townhome complex, or in a detached-home planned community. 

Homeowners in these communities fall within the HOA jurisdiction and pay HOA fees—dues for joining the homeowners association. Some HOA standards are relatively lenient, and others impose particular rules about how association members must maintain and utilize their property.

The HOA lays out all the regulations in a legal document called a Declaration of Covenants, Conditions and Restrictions (almost always shortened to CC&Rs). Rules dictate how members of the community must adhere to the following:

• Erect a fence, shed or outbuilding (if permitted at all)
• Exterior paint and trim colors
• Mailbox size and color
• Kind of landscape features allowed
• Maintenance of landscaping
• Rules about keeping animals and livestock
• Window treatment colors (usually in condominium or townhome communities)

Failure by the homeowner to comply with the CC&Rs can lead to financial penalties, up to and including litigation if a violation is not remedied. 

While that might all sound very rigid, it’s not all bad news for homeowners. There are legitimate reasons why people love living in communities with CC&Rs. 

3 Pros of an HOA 

#1 - Protecting property value

The primary reason many home buyers seek an HOA community is to protect their property value. They don’t need to overly worry that the neighbors will park junk cars in the driveway or let their grass grow until it resembles a rainforest. 

#2 - Maintenance of common areas and amenities

When you pay HOA dues, the entity typically accepts responsibility for the maintenance of all the community’s common areas. These locations include walking trails, community pools, and common garden areas. The homeowners must maintain their property—and only their property. 

#3 - Conflict resolutions 

If your neighbor decides to scoff at the rules and takes up chicken-keeping, rendering your backyard less than fresh smelling, you don’t need to dispute this action with your neighbor. Instead, you can contact the HOA and let them earn those monthly fees. They will reach out and resolve the issue on behalf of the entire community.

3 Cons of an HOA

#1 – CC&Rs feel crushing to some

Those CC&Rs can feel top-heavy with rules to those who like the freedom to do as they please. While some don’t mind a few rules, some communities can be super picky about every last detail. For a freedom-loving person who cares more about personal liberty than maintaining property value, an HOA can be a deal breaker.

#2 – Costs of dues can be steep

The protections of the HOA comes with a rather steep price in some communities. The lower end of the spectrum in the DC Metro area is around $300 monthly for communities of condos or modest homes with fewer amenities. However, the fees can stretch to about the $1000 per month mark in more affluent neighborhoods that offer more conveniences. 

#3 – Seeking permission for exterior improvements

Another con of the HOA is that you are usually required to submit a request before you make any exterior improvements to your property. Whether this is the installation of a pool or garage addition, you will need to complete paperwork. Your homeowners’ association will want to know the size, shape, color, and materials that you intend to use. Then, the request pends while they consider your request. The red tape can take months.

Final Thoughts on the HOA Concept

The choice of whether or not you purchase a home in an HOA-governed community is one which every home buyer must make. What some property owners see as value, others see as a deal with the devil himself. Where do you stand?