Florida HOAs, Homeowners, & Condo Associations

The Pros and Cons of Living in an HOA

Many tend to shudder when they hear "homeowners association" (HOA) because living within the boundaries of an HOA can mean more work and lots of critiques from the neighbors. In reality, belonging to an HOA isn't nearly as bad as is often portrayed, and there are usually more benefits than disadvantages.

A homeowners association is like a small government that manages and keeps the peace in your neighborhood. The entire purpose of an HOA is to maintain a higher quality of life for its tenants and homeowners, along with maintaining high property values.

Membership is mandatory if you purchase a home within the HOA, and they collect regular fees, usually monthly or quarterly. In return for your payments, an HOA offers service and specific amenities, such as a clubhouse, fitness center, activities, or community pool(s). Often HOAs and COAs will hire property managers to help them govern the HOA.

An HOA will also require that homeowners follow all rules and regulations. For example, an HOA can dictate the color of your home, the type of landscaping, the length of grass, and exterior décor, such as whether or not you may affix an item to your outer walls. An HOA can also mandate what type of holiday decorations you may have and for how long, pressure washing schedules, etc. These rules and regulations are written and shared with you before you purchase in an HOA, and you should understand all rules and make sure you can live within the guidelines.

Overall, such rules are supposed to exist for the community's betterment since they help keep the area looking clean and well-preserved. For some, this way of life sounds like a dream come true. For others, the hassle and risks are too much.

If you're unsure how an HOA would affect your way of life, consider the following list of pros and cons.

Most HOA rules are well-meant and carried out without any issues. Often the rules are beneficial to the community.

Here are some of the benefits of an HOA:

Nicer Neighborhoods: Because the rules are strict about your home's exterior appearance, the result is a much nicer neighborhood. The homes will look more upscale; there won't be any eyesores on your block. HOAs often install a gate around the community and hire security to monitor the area, making it safer overall.

Act as Mediator for Neighbor Disputes: Any time you argue about a dog barking all night long, your exact property line, or loud parties, the HOA will address it. Because of the penalties for breaking the rules, you probably won't have many problems anyway.

Higher Quality of Living: Every rule enforced in an HOA is there to increase the quality of life. Your neighborhood will be more peaceful, safe, and beautiful because of the rules, which improve your quality of life.

Community Amenities: HOAs use monthly fees to build and maintain community areas such as parks, pools, and recreational facilities. Since the cost is included in your monthly payment, using these services will come at no extra cost and is always maintained.

Say Goodbye to Pests: Most associations will go to great lengths to eliminate pests in the area: They'll provide pest control. There will be no scruffy dogs running around, raccoons climbing into your garbage, or termites eating up your walls.

Here are some of the disadvantages of an HOA:

For some, the disadvantages outweigh the advantages of having an HOA. If they see a property belonging to one, they won't look twice. So here are some of their biggest complaints.

HOA Fees: Like every other element of HOAs, the HOA fees differ based on the amenities and services the association provides, but they're usually pretty extreme. Also, some communities include a master association and sub-associations, and residents must pay fees to both associations. That can become quite costly.

Constant Maintenance: The rules and regulations that come with HOAs are strict and not negotiable; they require you to attend to the Maintenance of your home almost constantly. If you don't have much time to spend on your home's appearance and lack the funds to hire someone, Maintenance alone will be enough to discourage a property with an HOA. That's a reason why many seniors live in maintenance-free communities.

Increased Neighbor Disputes: Although the association will handle disputes for you, sometimes it will create them. A neighbor might argue that you aren't following the regulations, or maybe he'll be mad at you because you called the HOA on him for something else.

Can Discourage Renters: There are often restrictions on renting as well. For example, your association may say that only 15 percent of the homes in the community can be rentals while the owners must occupy the others. Others will require that tenants go through a rigorous screening process and win board approval before you can rent to them. HOA rental restrictions can make it difficult to turn a profit on an investment property.

Foreclosure Is Possible: Some HOAs have the power to foreclose on your home if you can't pay the fees. Regulations vary from state to state, and they'll generally foreclose only in rare cases. For example, the HOA can foreclose on your property in Florida if you don't pay the HOA fees.

Extra Fees: There may also be situations when the HOA proposes to do something for the benefit of the community but doesn't have the funds to do so. In that case, the HOA can impose an assessment on each homeowner in the subdivision. If the HOA is underfunded and doesn't have enough money in the reserve fund, the odds of escaping extra fees aren't in your favor.

Some of these drawbacks may not apply to you, or they may not seem too bad. If that's the case, an HOA could be a great option.

However, if the fees, Maintenance, and unknown risks seem too much, you might search for a property that an HOA doesn't govern.