According to reports from the Foundation for Community Association Research, more than a quarter of Americans live in communities governed by Home Owner Associations (HOA).
An HOA is an organization that makes and enforces rules and guidelines for a residential area, planned community, or condominium building.
People who purchase properties within an HOA’s jurisdiction automatically become members of the HOA and are required to pay HOA fees.
It usually has a board of directors who comprise of the community’s residents and is typically established to enforce rules and regulations that will ensure that the residential area is clean and orderly.
Here are 5 reasons why purchasing your next home in an HOA will be beneficial for you and your family:
1) Live in a well-groomed neighborhood
Most of the time, the guidelines associated with an HOA are related to the appearance of an estate. This includes exterior condition of the property, cleanliness, and any repairs done to the property.
These guidelines are usually enforced to ensure that there is a uniform appearance for all the properties included in the zone of the HOA. This can include all houses or units within the same condominium sporting the same coat of paint.
As mentioned above, people with properties under an HOA have to pay for HOA fees. These fees will typically include the provision of extra services for the HOA members.
For example, it may include landscaping, the cleaning and maintenance of facilities like swimming pools and gyms, or even lawn care and snow ploughing. Some fees might even cover the cost of trash collection.
2) Access to amenities
Homes that are part of an HOA generally have access to shared amenities. These may include a gym, pool, playgrounds or tennis courts.
These might be harder to come by in standalone houses, and also a hassle to maintain. With the HOA helping to keep these shared amenities well-maintained, home-owners can focus their free time on leisure and building up their quality of lives.
3) Creating a desirable community
The HOA management can step in to provide mediation between neighbors when conflicts arise. They can also design new regulations to help resolve conflicts and prevent future incidents.
Furthermore, the HOA community is often likened as a huge family, where strangers turn into neighbours.
4) Enforcing law and order
When someone breaks any of the rules in the community, it’s up to the HOA to enforce them and dole out punishments.
This ultimately leads to a safer neighborhood where the welfare of all residents are cared for.
5) Increasing the value of homes
Last but not least, by providing all the advantages above, an HOA can help to drive up the value of homes under its jurisdiction. By creating a desirable living space with a strong community, the property values of homes are increased.
University of California at Irvine researchers Wyatt Clarke and Matthew Freedman, analyzed public home listing data for 34 million housing transactions over 35 years, and their findings showed that single-family homes under HOAs sell for an average of 4% more — roughly $13,500 more — than similar homes outside of HOAs.
Is an HOA right for you?
There are definitely perks of living in a home within a HOA. Well-groomed neighborhoods, tightly knitted communities and good amenities are all part of the package.
However, it is always important to read the fine print, as well as review your budget and lifestyle.