Let’s talk HOAs. 

If you’re shopping for a new house, you’re likely to come across at least a few properties that are part of a homeowners association, or HOA.

HOAs assess fees that help maintain common areas and cover community services, so knowing the size of the fee (and what it covers) can help you decide if you want to live in the community, or whether you can afford to.

Association regulations are designed to protect property values, however, it is important to understand the rules of the HOA – from abiding by what color you paint your house or where you park your car. Be sure to look into rules about pets, flags, satellite dishes, fences, patios and home businesses before you buy.

Here are some tips to help you decide if living in an HOA community is right for you:

THE GOOD:

• Neat and Tidy – Most HOAs have rules about the community’s appearance. If you like the idea of a place where all the lawns are mowed, gardens are kept neat and tidy, and streets and sidewalks are clean and free of trash, a HOA may be your own little paradise on earth.
• Stuff to Do – Many HOAs provide a number of recreational facilities, such as swimming pools, tennis courts, golf courses, playgrounds and community centers. Some HOAs will sponsor children’s activities such as sports teams and holiday parties, and some offer frequent adult meet-ups and get-togethers as well.
• Less Work – Hate shoveling snow, cutting the grass, weeding the flowerbeds and all those other tedious chores? The good news is that some HOAs will actually take care of these necessities for you.
• They’ll Run Interference – If you’re conflict-avoidant, your HOA can actually bail you out of any neighborhood disputes that may arise. Can’t stand that constantly barking dog or those noisy Saturday night parties? No need to confront your neighbor yourself. Instead, all you need to do is file a complaint with the HOA and they’ll make sure all un-neighborly activity is nipped in the bud.

THE BAD:

• Fees, Fees, Fees – The downside of all the amenities, activities and administration performed by your friendly local HOA is that they don’t come free. Instead, you’ll need to pay monthly dues over and above the cost of your mortgage, so be sure to factor these in when deciding whether a HOA home fits into your budget. You should also be aware that, should you ever get behind on those fees, the HOA even has the authority to foreclose on your home.
• Cookie Cutter – Remember that old song about “little boxes on the hillside, little boxes all the same?” With some HOAs, those lyrics could well describe your neighborhood. They can have some pretty stringent rules that will dictate exactly what colors you can paint your house, how long your grass can be, what flowers you’re allowed to plant and what types of decorations you put up.
• Big Brother Really Is Watching – The flip side of having an HOA take care of all those pesky problem neighbors is, what if a neighbor (or the HOA itself) sees you as the problem? Not much fun being on the receiving end of a lecture or fine for performing routine car maintenance or simply playing your radio too loud.
• Better Keep That Day Job – Many HOAs frown upon operating home-based businesses out of their communities, so living in one may lose you this source of income. What’s more, HOAs may place severe restrictions that may not allow you to rent out your property. In fact, they may even insist on vetting future residents to the extent where it impacts your ability to sell.