Home Owner Associations

Homeowners associations, or HOAs, are formal entities created for certain communities to maintain common areas and enforce set rules, regulations, and bylaws. An HOA has the authority to enforce Covenants and Conditions & Deed Restrictions. HOAs are usually established to ensure that homeowners in a specified community adhere to specific regulations in order to maintain the quality and value of the properties in the HOA community.

When buying a new home, you need to carefully consider whether or not you want a home in a neighborhood maintained by an HOA.

Here are some pros and cons to homeowners associations.

Pros

• HOAs generally pay for and maintain common areas such as swimming pools, tennis courts, playgrounds, and clubhouses. Without an HOA, you may not have access to these amenities in your neighborhood.
  


• HOAs may often provide lawn care services and/or snow removal for each residence. You won’t have to do this yourself or hire someone to do it for you, which can free up your resources and your time.
  


• HOAs maintain or raise property values by regulating aspects of your community that help keep a neighborhood looking well kept. Some HOAs have restrictions on the percentage of homes in a neighborhood that can be rented. This can positively affect property values as well.
  


• HOAs often host neighborhood parties and BBQs, which can help build relationships among neighbors.
  


• If you disapprove with the condition or appearance of a neighbor’s home or yard or are concerned with how a neighbor’s home may be affecting your own property value, the HOA acts as a mediator to ensure all guidelines are followed by everyone in the community.

Cons

• Some homeowners feel that having an HOA doesn’t allow them the freedom they want. There are restrictions with an HOA that you won’t have without one such as pet restrictions, parking restrictions, yard maintenance regulations, and regulations regarding the outside appearance of your home.
  


• If you want to rent your property, you often have to approve the rental with the HOA. Some HOAs only allow a certain percentage of renters in the community to maintain property values.
  


• With every HOA, there are monthly or yearly dues. This is an expense you’ll need to consider when buying a home. Also, HOA fees can increase without warning, so you will need to budget in advance.
  


• HOAs have the right to file a lien on your home if you don’t pay your fees.
  


• Some HOAs are poorly managed. Many HOAs have volunteer board members that are usually a part of your community, but they don’t manage the HOA full-time. Often, a management company is hired to oversee the HOA, and some residents don’t like having an outside management company that isn’t part of the community overseeing their neighborhood.

If you are considering buying a home that’s part of an HOA, ask to get a copy of the rules, regulations, and bylaws before you make your offer so you can thoroughly review whether or not having an HOA is right for you. Be aware of what the HOA fees cover. Some HOA fees may even include cable T.V. or Internet service, which might even save you money. Also, look at the budget, financial records, and minutes from the previous board meetings. These will give you some indication as to how well the HOA is run.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262