How Do HOAs Work

Dated: 11/15/2016

Views: 239

How do HOAs work?


When you purchase a home, there’s a good chance you’ll have to pay a homeowners association fee, especially in gated communities, townhouses, condominiums, and other similar planned neighborhoods. The idea is to keep common areas clean and maintained, and there’s usually an HOA board that is responsible for setting the rules and regulations.

Each HOA is different, but most have the same core elements. You’ll typically pay your HOA fees either monthly or annually, and it’s an important factor to consider when you’re weighing your options for a new home. So what is typically included in your HOA fees?

First, the fun stuff Amenities are typically the big perk of living in a community with an HOA. While you lose out on some of the freedom of living without an HOA, you instead get community amenities like a maintained pool, gym, clubhouse, tennis courts, and other amenities. The HOA fees pay for cleaning and maintenance, so—in theory—you’ll always have a clean pool whenever you want to use it.

Protecting the community HOA fees often contribute to insurance for the community amenities, as well as a fund for unexpected repairs to damaged community property—think damage from weather or accidents.

General maintenance Your HOA fees will go toward maintaining the general safety and upkeep of the community. This means things like elevator maintenance for condominiums, snow removal, and trash/recycling services.

Be active in the association There may be a board of directors, but homeowners associations exist for the betterment of the entire community, and every voice matters. HOA meetings—and the amenities they support—provide great opportunities to meet your neighbors and make your community a better place.

Blog author image

Deysma Kettering

When you consider buying or selling a home, potentially the largest financial commitment and most important investment in your life, there are no more powerful and important words than reliability and....

Latest Blog Posts

Small Investors Partner Up Share Risk And Reward

Some small investors starting to partner upCHICAGO – Feb. 20, 2018 – As property prices rise, smaller real estate investors are reportedly teaming up with others so they can afford their next

Read More

5 Ways To Teach Your Kids About Finance And Investing

5 Ways to Teach Your Kids About Finance & Investingby Dave Van Horn | BiggerPockets.comAfter I completed my formal college education and entered the “real world,” I went on to

Read More

Mortgage Rates At Highest In More Than A Year

Mortgage Rates at Highest in More Than a YearBy RISMedia Staff Share This Post Now! The average 30-year, fixed mortgage rate is at its highest in more than a year: 4.32 percent, according

Read More

MORTGAGE RATES AT HIGHEST LEVEL IN OVER A YEAR

Mortgage Rates at Highest in More Than a YearBy RISMedia Staff  Share This Post Now! The average 30-year, fixed mortgage rate is at its highest in more than a year: 4.32 percent, according

Read More