If you’ve only lived in single-family homes, you might be unfamiliar with homeowners associations. 

They’re meant to protect the interests of residents in condo, townhome and planned communities. They collect regular fees to provide for maintenance and some insurance coverage.

HOAs maintain special amenities like pools or tennis courts that boost property values. They can act as mediators in disputes between neighbors. 

Those new to HOAs need to be aware that they typically establish rules that everyone is expected to follow, including rules meant to maintain a consistent appearance throughout the neighborhood.

That’s why it’s important to thoroughly review all HOA regulations, fees and amenities before purchasing a property. 

Expect Additional Costs

Becoming a member of a homeowners association means paying a recurring monthly or annual fee that goes above and beyond your mortgage costs, as well as accepting certain rules, terms and conditions.

Your fees can differ greatly based on various factors, including the square footage of your home. Amenities like pools require constant upkeep that can have a significant effect on costs.

The size of the community can influence HOA dues. Fees per household tend to decrease when divided among a larger number of residents. 

Management Structure

Older, more established communities tend to have self-run homeowners associations with an elected board and resident-run meetings. Board members are usually volunteers who reside in the community. Duties typically involve directing collected dues toward services defined in the HOA’s charter.

They’ll adjust fees based on living cost changes or unforeseen expenses, like the need for a new roof after a storm. In some neighborhoods, especially newer developments, external management firms may oversee these boards. 

What to Ask

Before you buy an HOA-managed property, ask about previous one-time or non-annual charges. These extra fees are commonly referred to as “special assessments,” and tend to highlight maintenance concerns or issues related to the board’s budget management.

HOA regulations will outline what is allowed and what is prohibited in your prospective neighborhood.

If you have a furry friend, ask whether the HOA restricts pet ownership. Others may enforce age-related residency criteria. If you’re considering a gated community, ask about the visitor’s policy.

They provide an extra layer of security but may restrict accessibility.