Pros And Cons Of Joining An HOA

Homeowner associations (HOAs) can be quite controversial, especially amongst people who want as much freedom as possible. That said, it can’t be all bad, or else nobody would join an HOA in the first place. So, what are the pros and cons of joining an HOA?

The pros of living in an HOA include higher home values and shared community amenities. Some associations handle landscaping responsibilities, which helps members save time and money on lawn maintenance. However, the strict rules, dues, fines, and special assessments have many people thinking twice before joining an HOA.

While you can get more when selling your home if live with an HOA, you’ll also spend a money on dues and special assessments. That’s why you should carefully consider your decision to join an HOA before you sign the papers. Follow along as we explore the pros and cons of being part of an HOA.

What Are The Advantages Of An HOA?

Maintains Or Boosts Home Value

HOAs serve many purposes, and boosting home value is one of them. Many of an association's rules focus on property maintenance and appearance throughout the neighborhood. The idea is that the area will retain or appreciate in value if all the homes look great. The amenities offered by the HOA can also help increase home value. HOA homes sell at prices 6% higher than non-HOA homes, on average.

In that sense, the dues paid can be viewed as a further investment in your home. HOA boards prioritize curb appeal, which is an important part of home value. Many people who seek community and privacy are willing to pay top dollar for a home with an HOA.

Enjoy Amenities

Some people don’t like that HOAs charge dues, but that money go toward community amenities. For example, shared spaces, such as pools, gazebos, parks, playgrounds, gyms, and spas. High-end HOAs even have basketball and tennis courts, which members can use during the allotted hours. Not all HOAs offer every single one of these amenities, but they likely have a few. Available amenities are a selling point for potential buyers, plus they foster socialization and community, which appeal to many people.

Fewer Landscaping Responsibilities

Because HOAs ensures homes in the neighborhood look uniform, they often handle some key landscaping responsibilities. For example, mowing and edging your lawn for you. They may also trim and prune your trees and shrubs or even remove dead trees on your behalf. That’s not always the case, so it’s worth looking into this before buying a home in an HOA neighborhood. Associations that do provide these services can do so because of the fees you pay for dues, which saves you the time and money from hiring multiple services.

HOA Boards Mediate Conflicts

Many people deal with contentious relationships with their neighbors. This can make anyone feel uncomfortable, especially without a mediator. One thing many people like about HOAs is that the board can act as a mediator for disagreements between neighbors. HOA members can submit written complaints to the board, and the board must handle them.

For example, your neighbor may throw a party that lasts late into the night, and you can alert the HOA board. From there, the board may notify your neighbor that they’ve violated the noise regulations. Neighborhood conflicts are always awkward, but having a middleman can make this much easier. That said, you can’t abuse the privilege of having an elected board handle your disagreements.

What Are The Disadvantages Of An HOA?

Strict Rules

Every HOA has Covenants, Conditions, and Restrictions (CC&Rs), which dictate what you can and cannot do in the community. These CC&Rs can include how many pets you can have, your front door’s color, and home additions. While the rules vary between HOAs, many people believe that the board oversteps their bounds. Spending that much money on where you live can be frustrating if you feel limited in what you can do.

That’s especially true if your HOA board is frivolous with its fines and punishments. It’s important to thoroughly read the CC&Rs before joining an HOA. Otherwise, you may regret your decision to join if you're constantly getting blocked from, or fined for doing what you want. It’s also important to learn about unenforceable HOA rules, as you may not owe or deserve the fines you receive.

Board Mismanagement

Every HOA has a board that helps manage the community and allocate the funds. They enforce the rules, vet potential members, collect dues, and manage the financial reserve. Unfortunately, some HOA boards are poorly run and make members unhappy. HOAs are managed democratically, but even just a few weak links on the board can disrupt everything. That said, HOA members can band together to remove problematic board members.

The reality, though, is that this process isn’t as easy as it should be, and removal procedures vary. You’re typically supposed to draft a petition to remove the board member, get your neighbors to sign it, then hold a special meeting. This can take weeks or even months, and some people believe it shouldn’t be that difficult to get rid of someone who is disrupting the entire HOA board.

Special Assessments

HOA members are aware of their dues and budget accordingly, but not everyone considers that special assessments can happen. These are extra fees that occur during emergencies or when the HOA board runs out of money. You may be okay with paying dues, since that’s what you signed up for, but you didn’t expect to spend more money on special assessments.

HOA boards impose special assessments for many reasons, such as repaving roads and repairing storm damage. Members must sometimes spend thousands of dollars to pay for these improvements and fixes, which can disrupt their lives. That’s especially true if your budget is tight. This is one of the biggest downsides of living in an HOA community.

Excessive Intervention

Before moving into an HOA, you may think that you won’t mind the board having that much control over you. They may eventually get on your nerves if the HOA board oversteps its bounds and exerts too much power. For example, nobody expects the HOA board to put a lien on their home because they are behind on dues. The HOA can, in fact, put a lien on your home, and that can push you into foreclosure, in extreme cases.

This is supposed to be a last resort, but there’s no scenario where that should be allowed. Of course, the process is different between HOAs and even the state you live in. Consider this risk before you buy a house in an HOA community. You can’t leave the HOA in a neighborhood where joining one is mandtory, so moving out is your only option.

Can You Stop Your Neighbors From Starting Their Own HOA?

You can’t necessarily stop your neighbors from starting an HOA, but if you already live in the neighborhood, nobody can force you to join an HOA where one didn’t previously exist. Existing neighborhoods can only become mandatory HOAs if everyone votes for it, in most states, at least. In that case, you can decline the opportunity and enjoy your freedom. However, you may want to think twice before intervening and stopping others from joining and respect their choice.

Summing It Up

The biggest benefit of living in an HOA is that you can enjoy many amenities and enjoy higher property values. On the other hand, you must follow strict rules, and you risk facing expensive fines and special assessments as a member. Many people find that the board intervention and rules are worth it for the amenities and increased home values.

Related Guides:

• Seven Signs Of A Dysfunctional HOA Board
• Seven Tips For Living In An HOA Community