The Pros And Cons Of Homeowners' Associations

By
Real Estate Broker/Owner with Realty Executives NOLA - Kim Higgins, Broker/Owner - Greater New Orleans & Northshore Area Real Estate

Homeowners’ associations (HOA’s) are becoming more popular for single-family homes, condos and townhouses and are the governing bodies of these developments and complexes. Beware, though, when you purchase a home that is a member of an HOA,  you must abide by all its rules and regulations. Here are some pros and cons to consider before becoming a part of a homeowners’ association: 


PROS


Pro #1 Your neighborhood will look good. This is true because the HOA has established strict rules regarding maintaining a manicured lawn and forbidding parking of boats and other large vehicles on the street or driveway. 

Pro #2  You’ll enjoy access to amenities such as fitness centers and security gates. 
Pro #3  Your maintenance costs will be shared with others in common spaces, such as the upkeep of the pool or the community lawn area. 
Pro #4  You’ve got a built-in mediator. You can use the HOA board or management company to settle disputes with neighbors. 
Pro #5  You can get to know your neighbors. If you serve on the HOA board or become active in the association, you may get to know your neighbors. 

 

CONS

Con #1 You’ll fork over HOA dues. The dues could end up costing you hundreds of dollars a month, so be sure to add this to your budget. 

Con #2 Your hands will be (somewhat) tied.  Although you may wish to make a change to your home, if the change is not approved by the HOA, you may have to change your plans to suit the rules of the HOA. 
Con #3 You might be hampered by an HOAs financial woes. If the HOA is undergoing financial struggles, it might hamper you from making a loan to purchase a new home. 
Con #4  You’ll lose some of your freedom. Even if you do not agree with the rules, you have to follow them. 
Con #5 You might be the victim of a rogue board member. You could encounter a rogue board member who wants to do something you do not agree with, but there’s not much you can do about it other than become a member yourself.

 

Source: http://blog.rismedia.com/2015/5-pros-and-5-cons-of-homeowners-associations/.

Posted by
Kim Higgins, Broker/Owner
ABR, CRS, e-PRO
Direct Cell: 985-705-1910
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Rainer
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Dinah Stallworth-Lewis
Priority Real Estate LLC - 800.978.4847 - Natchitoches, LA
NATCHITOCHES, LA HOMES FOR SALE

Kim,

I've never had a house that has been a part of an HOA.  These are excellent tips.  I am surprised by Con #3, I wasnt aware it could hinder you from getting a home loan.   I will definitely pass this information along to my buyers.  Thanks for sharing.

Oct 07, 2018 10:20 AM #1
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