What To Know Before Joining An HOA

Homeowners Associations (HOAs) exist in all U.S. states, and they’re somewhat controversial. Some people love the security that HOAs offer, as they help maintain property values. Others are torn about the number of rules and costs associated with HOA membership.

It’s important to know that joining an HOA requires monthly dues, and you’re subject to fines if you break the rules. The HOA can also require you to pay special assessments to cover unexpected costs. However, HOA membership may boost property value and provide you with many desirable amenities, such as a pool and tennis courts.

Each HOA is different, so ask as many questions as possible before joining one. That way, you won’t have to deal with any surprises after moving into your new home. Follow along as we explore what to know before joining an HOA.

What To Consider Before Moving Into An HOA Community

1. Compliance Is Mandatory

You should only join an HOA community if you understand that adhering to the rules is mandatory. On paper, some of the regulations that HOAs impose may not seem too serious. However, you are subject to fines and may lose certain privileges if you don’t comply with the rules. Before joining an HOA, review the bylaws and Covenants, Conditions, and Restrictions (CC&Rs), which dictate the obligations and rules that members must follow.

You can’t pick and choose which rules you agree with, as full compliance is mandatory. This can be a good or bad thing, depending on your perspective and how much freedom you want. That’s why it’s important to familiarize yourself with these rules before joining an HOA. Once you join, there’s no turning back until you sell your home and relinquish your membership.

2. You Must Pay Monthly Dues

HOAs require members to pay monthly dues, which help cover operational costs and maintenance. Many HOAs offer community amenities and shared spaces that require maintenance. The HOA uses this reserve to cover trash removal, utilities, landscaping, repairs, and even security. Understand this before joining the HOA, since you must be ready to pay the monthly fee.

Members can expect to spend from $200 to $400 on membership fees, but it depends on the neighborhood and often vary based on the neighborhood’s value. For example, you can pay up to $1,000 on monthly dues in high-value neighborhoods in major cities. Figure out how much the monthly dues cost and see if you can make it work with your budget.

3. Special Assessments Can Throw You For A Loop

HOA members can plan for monthly dues, but they often get surprised by special assessments, a one-time fee meant to cover unexpected HOA expenses. For example, HOAs often impose this extra cost when shared amenities, like the swimming pool, requires expensive repairs. It’s called a special assessment because the HOA board didn’t plan or budget for the expense. Before joining an HOA, you should be aware of this potential expense and consider that it will happen unexpectedly.

Because you can’t plan for it, it’s a good idea to have some extra money tucked away for such instances. Otherwise, an assessment may set you back financially and negatively impact your budget. That said, some HOAs are more understanding than others and will let members pay the fee in installments. It’s a good idea to ask about the special assessment policy before joining an HOA if you’re worried about your budget.

4. Some Maintenance Is Covered

While not all HOAs do this, some cover certain parts of home maintenance. In most cases, this refers to landscaping, since to goal is for all yards to look the same. This is one of the biggest benefits of HOA membership, but not all communities cover yard maintenance.

Instead, some require members to hire the same landscaper to ensure a uniform look throughout the community. That’s why it’s important to ask many questions if you want to join an HOA that covers landscaping. That can at least help narrow your search.

5. HOAs Typically Offer Amenities

High home values are among the biggest benefits of joining an HOA, but the amenities can sweeten the pot. HOA amenities vary between communities, but they often include a swimming pool, clubhouse, fitness center, and tennis courts. Not all offer all of these amenities, but even a few can make a big difference. Naturally, high-end HOA communities are more likely to offer bigger, better, and more amenities. Membership dues are worth the cost if you take advantage of the amenities your HOA offers.

That said, there is a correlation between membership costs and the type and amount of amenities offered, since membership fees go toward maintaining them. You may not find many desirable amenities in an HOA community that has a $200 membership fees compared to those in an expensive HOA, so you must weigh the pros and cons.

6. You Can Be Fined

Fees and monthly dues aren’t the only expenses you can expect as an HOA member. You can receive fines for breaking any regulations outlined in the CC&Rs and bylaws. This includes violations of noise, parking, commercial use, guest, and maintenance ordinances, among others. These fines can quickly add up and throw your off your budget. The HOA will also penalize you if you fail to pay your monthly dues on time.

That’s why you must carefully read the CC&Rs and bylaws to ensure you will follow the rules. Some rules may be easy to follow, while others may seem too rigid. For example, you can get fined for leaving your trash cans out past the dictated time. Familiarize yourself with the rules to avoid fines, and pay fines on time to avoid having to pay interest.

7. You Can Join The Board

Many people happily pay dues and enjoy the perks of HOA membership. Others want to get involved and play a bigger role in the operations. You can join the HOA board and have a bigger say in what goes on in your community, although there is an election process, and you must follow the proper steps to join the board. Joining the board will appeal to natural leaders and those who want to improve the community.

Don’t hesitate to ask about the board election process when considering whether to join an HOA. If you’re dead set on getting involved, you may want to pick an HOA with a relatively easy board election process. That way, you can help steer your community in a direction tht suit you and help care for your neighbors.

8. Consider The Financial Implications

HOA membership involves spending money on dues, special assessments, and potential fines. None of that covers the cost of buying the home itself, paying property taxes and utility bills. These extra costs may deter some people, but you must also consider how HOA membership affects property value. Homes in HOA communities often increase in value by up to 6%, depending on the location and market conditions.

At the very least, HOAs strive to maintain home values throughout the neighborhood. That alone encourages many people to join them, or at least consider joining one. Think how the financial benefits will negate the cost of dues, special assessments, and fines.

9. Membership Is Mandatory

You may have your eyes on a house in an HOA neighborhood, but you don’t want to join. Unfortunately, that’s not an option, as HOA membership is mandatory in neighborhoods with an existing HOA. However, you don’t have to join an HOA if you live in the neighborhood before the HOA forms.

In that case, your neighbors must get unanimous approval to make the neighborhood a mandatory HOA community. They can’t force you to join in that case, as you already lived there before the HOA was established. However, you should only move into an HOA neighborhood if you’re willing to join the group.

Summing It Up

Before joining an HOA, consider the costs, such as monthly dues, special assessments, and fines. On the plus side, many high-end HOAs cover landscaping duties for members and offer shared amenities, such as pools and tennis courts. HOA membership can boost home value, but it can also add hundreds or even thousands of dollars to your monthly expenses.

Related Guides:

• If Your Neighborhood Starts An HOA, Do You Have To Join?
• 11 Unenforceable HOA Rules