You’ve decided to purchase a home in a neighborhood that has an HOA. But, what does this mean exactly? An HOA (Home Owners Association) is an organization that creates and enforces rules for residents, their homes and their neighborhood. Buyers, who purchase a property within an HOA automatically become members and are required to pay dues or HOA fees. Because some HOAs can be more restrictive than others concerning what members can and can’t do with their properties, it makes you wonder how the HOA benefits home owners.
Maintain Property Values
Because residents are held accountable to deed restrictions, the homes and common areas within the neighborhood are well-maintained. Having well-kept homes in a well-kept neighborhood is what makes living in an HOA community desirable to a lot of home buyers and keeps up property values.
Architectural Controls
The HOA creates and enforces the community rules. In fact, residents are required to submit a proposal for any exterior modifications to their home or land to the HOA for approval. The Architectural Control Committee reviews each proposal to ensure continuity within the original community standards.
Rules and Regulations
Each resident in the neighborhood is held to the same set of standards. This includes the upkeep of their home’s exterior, adherence to noise policies, parking restrictions, rental restrictions and guidelines, etc.
Access to Amenities
Many communities offer walking trails, tennis courts, sports areas, swimming pools and neighborhood parks for resident use. These amenities are maintained through the HOA. This includes the manicured common area lawns and lighting around the courts and pools. If the neighborhood looks good, the community feels good.
Financial Stability
An HOA that is under good management has a fund reserve available for future common area repairs and capital improvements. This is important so that home owners do not have to pay a special assessment when something in the common area needs to be addressed.
As you can see, the HOA benefits home owners in many ways. The HOA maintains the overall continuity and appearance of the neighborhood making it more appealing to potential buyers!