Being a part of an homeowner’s organization provides many great benefits. While the dues vary for each association, many HOA’s cover and provide for some really great perks that come along with being part of the organization.
While some associations are mandatory if you own a home in a subdivision or a condo in a complex, some operate under choice. In addition to providing benefits to all members, homeowner associations often carry rules and regulations that must be enforced on homeowners.
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The structure of homeowner associations
Homeowner associations are organized to prevent unwanted tenants, provide features and benefits to the residents, and build a community that is held to a certain standard. Being a part of a homeowner’s association often requires monthly or yearly fees that must be paid in order to keep the organization running and properties/land up-to-date. This association is often governed by a board of directors comprised by current homeowners that make the rules and regulations and establish the HOA fees.
Benefits of homeowner associations
Since the vast majority of HOA’s operate on a financial dependence of the residents to maintain the property, monthly or yearly fees must be assessed. These fees are intended to maintain and enhance the community that is under the homeowner association. While not a comprehensive list, here are some benefits that HOA’s often provide or take care of:
- Water/Sewer
- Cable
- Electricity
- Pool access
- Ground maintenance
- Exterior maintenance (roofing, siding, etc.)
- Golf course access
The list can go on and on, it is up to each HOA to decide what they will provide for their members.
The costs of homeowner associations
In addition to the costs of buying a home, houses that are part of homeowner associations incur regularly scheduled dues that must be paid (which are not optional in the majority of instances). These fees can add up over the course of time.
For example: You buy a house for $200,000 that has monthly HOA dues of $200. You live in that house for 10 years and end up paying the $200,000 plus ten years of HOA dues ($24,000) for a total of $224,000. While this seems like a lot to be paying, most HOA’s cover many unforeseen expenses like re-roofing, your monthly sewer/water bill, and possibly your trash collection.
On the other hand, had you purchased a home that was not part of an association you would have paid $200,000 plus monthly expenses and potentially costly repairs, such as re-siding or re-roofing your house.
Weighing the pros and cons
When you decide to purchase a home, weigh the costs of the HOA against the benefits that the association provides you. If the HOA states that they cover landscaping and major repairs, talk to some current residents or see how well you believe the landscaping is maintained.
Every homeowner’s association will be different, the value lies in knowing whether the dues are worth their cost.
