If you’re starting the (exciting!) journey of looking for a new house, you might have stumbled across the term “homeowners association.” But what exactly is it, you may be wondering?
A homeowners association (HOA) is often put in place in suburban, residential communities that keep a sense of structure in place. They also exist in developed areas where you find townhouses, condominiums, and single-family homes. HOAs often have requirements such as lawn care guidance and things that will build on the clean and uniform looking nature of the area, but there are also some perks that come with being part of one.
- There are fees involved. However, the fees you have to pay can have a huge range. Depending on the area you’re moving to (for instance, New York City will have a much higher fee than towns in Michigan do), you’ll see quite a difference. There are also differences depending on the size of the property and the house’s orientation and location within the development, which all will determine how much upkeep is needed on the property.
- Your home will vary depending on your neighbors. Though the point of living within an HOA development is that there is a sense of uniformity among you and your neighbors, there is still a range of what you’ll see. There also comes added obligations, such as legalities and other bundles. For instance, there are some gated communities where you’re only paying a gated community fee while other developments might have more tied into the legal obligations.
- There might be hidden fees. While there is always some sort of upfront fee for joining an HOA, there are also usually some additional fees you’ll need to cover. This will mostly be paying for how the HOA will pay for things like an HVAC renovation or other needed repairs and maintenance. Check before you join if there are any special assessments needed for the property so you can see what you might be in for.
- Learn the rules. Each development will have its own unique rules and regulations that you’ll need to abide by, so if you have lived in an HOA development before, don’t just assume it will be the same rules. Some things that are common in HOA rules (but not limited to it), how high the grass can be, how high the fence can be, what cars you can park in the street, and what color your front door is allowed to be.
