Homeowners Associations (HOAs) are not for everyone. When I moved from New York to Harford County, Maryland, I was unfamiliar with HOAs since they weren’t common in upstate New York. The real impact of living under an HOA became clear after we started landscaping improvements at our new home, which had previously suffered from serious neglect. Our home was such an eyesore in the neighborhood that neighbors actually thanked my husband while he was outside hacking down the overgrown vegetation. However, this initial joy didn’t last long. Just a week later, we received a strict letter from the HOA, chastising us for not getting the changes approved by the architectural committee. That was a real eye-opener for us about the nature of HOAs.
If you’re considering buying a home in Harford County, you’ll likely encounter properties with HOAs. As an experienced realtor who has lived both with and without an HOA, I recommend that you carefully weigh the pros and cons of living in an HOA-managed community.
What is an HOA?
A Homeowners Association (HOA) is an organization in a residential community that makes and enforces rules for the properties and residents within its community. HOAs are commonly found in planned neighborhoods, condominiums, and townhome communities. The main purpose of an HOA is to maintain and enhance the quality of life in the community and the property values of the homes within it.
This is achieved through the management of common areas, enforcement of architectural standards, and the oversight of amenities such as pools, fitness centers, and community spaces. Membership in the HOA is typically mandatory for all property owners within the community, and members are required to pay regular fees to fund the association’s activities. These fees contribute to the maintenance of shared spaces, landscaping, and amenities, and often cover services like trash removal and snow clearance. While HOAs provide a structured environment and community benefits, they also impose certain restrictions on homeowners, which can include limitations on property modifications, pet ownership, and rental opportunities.
Pros of Living in an HOA Community
Boosted Property Values and Superior Home Aesthetics:
The most significant advantage of living in an HOA community is the protection and enhancement of home values. As a realtor, I appreciate the crucial role that curb appeal and neighborhood aesthetics play for potential buyers. HOAs rigorously enforce maintenance and aesthetic standards to ensure a cohesive and visually appealing look throughout the community. This includes setting guidelines for paint colors, types of fencing, and more. It also involves rules that prevent unkempt yards and deteriorating home exteriors. This proactive management not only preserves property values but also improves the overall living experience for all residents, ensuring that neighborhoods remain attractive and well-maintained.
Efficient Conflict Resolution:
HOAs can serve a vital role in resolving disputes between neighbors, from pet issues to noise complaints. By managing these conflicts, HOAs foster a peaceful community atmosphere, which benefits everyone. For example, in my old neighborhood, there was a recurring problem with dog walkers not cleaning up after their pets. The HOA efficiently addressed the issue by reaching out to the individuals involved, ensuring the community remained clean and harmonious.
Comprehensive Amenities and Services:
Many HOAs provide crucial services, including trash removal and snow clearance, as well as amenities like pools, fitness centers, and community events, which are all included in the HOA fees. This arrangement can save you money, as it eliminates the need for personal investments in a pool or gym memberships. In condominiums, while HOA fees are often higher, they usually cover the maintenance of the building’s exterior, including roofs, enhancing the overall value received.
Cons of Living in an HOA Community
Rules:
Living in an HOA community means adhering to strict guidelines, particularly for any external modifications to your property. You must obtain approval for activities like painting, landscaping, or installing a fence, which could restrict your creative freedom. Additionally, you may face other unexpected restrictions. For example, there may be rules regarding the size and breed of dogs allowed, street parking, having a commercial vehicle at your home, soliciting your neighbors, or restrictions on renting out your property.
When you enter into a contract in a Maryland HOA community, you typically have five days to review the HOA documents. It’s crucial to thoroughly read and understand all the rules to determine if you can live with them. If you find the regulations too restrictive, you have the option to withdraw from the contract within the review period.
Substantial Financial Commitment:
HOA fees can be substantial and differ greatly depending on the amenities and services provided, and these fees are usually paid quarterly. Selling a home within an HOA often entails buying an expensive HOA packet for the buyer. Moreover, unexpected assessments can place additional pressure on your finances. I often tell my clients, “You have to pay to enter an HOA, pay to remain in an HOA, and pay to leave an HOA.”
Dominant HOA Boards:
Some homeowners may find their HOA board too controlling, with a tendency to enforce rules that can feel restrictive or unnecessary. This can lead to frustration among those who feel their autonomy over their own property is unduly limited.
Risk of Liens and Foreclosure:
Non-compliance with HOA rules or fee payments can lead to severe penalties, such as property liens or even foreclosure. These risks add a bit of financial uncertainty to homeownership within an HOA.
Final Thoughts
Choosing to live in an HOA community offers a structured, aesthetically pleasing environment filled with amenities that enhance your quality of life. However, it’s crucial to weigh the financial burdens and the restrictions imposed by the HOA against the benefits they provide. As your realtor, I urge you to carefully review the HOA’s rules and consider how they align with your lifestyle and financial goals. Balancing the structured benefits of community living with the potential restrictions and costs will ensure your long-term happiness and financial well-being.
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