What Are The Pros And Cons Of An HOA?

By definition, an HOA or a homeowner’s association is an organization in a subdivision, condominium, or planned community that is able to enforce rules for the properties in its jurisdiction. HOA’s collect monthly, quarterly or annual dues that maintain the common areas and amenities. This can include the general upkeep of parks, tennis courts, elevators and swimming pools that are part of the subdivision. The HOA can also levy special assessments on homeowners when it lacks sufficient funds in their reserves to pay for unexpected repairs. Depending on your personal preferences, living in a community with an HOA can be a blessing or a curse.
Pros:

General Appearance: Homes that are part of an HOA usually have to meet a set of standards that are enforced by the association. The penalty for the not maintaining these standards usually results in a fine. This translates to less homes having old, peeling paint, strange exterior colors or unkempt lawns. There are certain HOA’s that even have a design review board which holds the power to approve or deny any changes to your home’s exterior. Some HOA’s may even go as far as to deciding which types of vehicles can be parked on your property.

Lower Maintenance: A community with an HOA usually has services that take care of trash, lawn care and snow removal making it much easier for the homeowner. All common areas are also maintained by the association.

Amenities: Some HOA’s have swimming pools, tennis courts, walking trails, sport courts, golf courses and a community center that allow the community to get together and enjoy it! There is a certain luxury in having all these amenities right outside your door.

Management: If you are having issues with your neighbors, management is usually able to interfere and handle the issue. This allows you avoid a personal battle and resolve the problem in a diplomatic manner. 

Cons:

Freedom: For some owners, having a management association tell them what they can and can’t do is a deal breaker. It is important to always read the regulations for the HOA, in which you are considering so you are not surprised by their terms. If you are interested in being a voice of change for the HOA, you can become involved and be there when decisions are made.

HOA Fees: HOA fees can differ as much as the homes you are viewing. They are based on multiple factors such as the services that are provided and the amenities. When looking for a new home, it is important to compare HOA fees from one community to another based on what they cover. In that situation, you can also compare amenities and even if the initial HOA fee seems steep, you may be saving money in the long run by not having a gym membership or landscaper.

Frequency of Use: You also have to take into consideration whether you will be using the amenities that you are paying for such as the tennis court and swimming pool. If you are not going to be using these features it doesn’t make much sense to pay a premium for them.

If you have any questions regarding HOA or different neighborhoods in Austin, please reach out to me here, or give me a call at 512-914-2873!