How HOAs Affect Your Home and Property

Homeowner Associations, also known as HOAs, primarily exist to manage, maintain, and sometimes market homes in condominiums, townhomes, and select neighborhoods or subdivisions. 

Now, with the formal definition out of the way, it’s important to understand how an HOA can influence not just your lifestyle, but your long-term homeownership costs and responsibilities. 

Whether you’re purchasing your first home or relocating to a planned communityA residential development where the layout of homes, roads, stores, and amenities is carefully designed to create a convenient, enjoyable, and cohesive living environment.planned communityA residential development where the layout of homes, roads, stores, and amenities is carefully designed to create a convenient, enjoyable, and cohesive living environment., an HOA could very well play a significant role in what your experience – and your monthly expenses – end up looking like. 

What Comes with Being a Part of an HOA? 

Joining an HOA essentially means becoming part of a community with shared responsibilities, expectations, and benefits.  

So, while the structure and rules can vary from one neighborhood to the next, most HOAs have similar features that affect your finances, property upkeep, and everyday living. Here’s what to expect when you’re part of an HOA-managed community: 

Monthly Payments 

One of the most overlooked costs of homeownership is the HOA fee. 

These neglected fees are typically paid monthly, quarterly, or annually, and they go toward the maintenance and improvement of shared spaces and amenities within the community. 

HOA fees often vary dramatically based on your property’s location, size, and the amenities offered. For example: 

• Condos and townhouses can include HOA fees that cover landscaping, trash removal, exterior building maintenance, snow removal, elevators, stairwells, and sometimes water or even basic cable. 

• Gated communities or single-family neighborhoods may charge fees to maintain the beautification of parks, sidewalks, entry gates, signage, and common spaces. 

And in some of the more upscale communities, fees may also cover: 

• Pool and clubhouse maintenance 

• Fitness centers 

• Tennis courts or golf courses 

• Private road upkeep 

• Security services 

So, remember to factor these fees into your total monthly housing budget, especially if you’re comparing homes in both HOA and non-HOA neighborhoods. 

Also worth noting: HOA fees are subject to change. The HOA board can raise dues or charge special assessments to cover unexpected repairs or upgrades. So, when you’re reviewing financials, look for consistent budgeting and ask if there have been recent hikes in fees or surprise assessments. 

Community Rules and Restrictions 

Perhaps one of the biggest adjustments for homeowners in an HOA community is learning and following the HOA’s rules (formally known as covenants, conditions, and restrictions). 

The range of rules vary from the reasonable to the highly specific. For example, an HOA might: 

• Restrict exterior paint colors 

• Require approval for major landscaping changes 

• Limit fence height or materials 

• Ban certain types of vehicles (like RVs or boats) from being parked in driveways 

• Prohibit specific lawn treatments or fertilizers 

• Outline acceptable holiday décor or the length of time decorations can be displayed 

The rationale behind these regulations really comes down to uniformity and safety. For instance, a rule about lawn care might seem strict, but it’s often in place to prevent overgrowth that could attract pests or reduce curb appealThe attractiveness of your home and its surrounding area, including physical features and the yard, when viewed from the outside.curb appealThe attractiveness of your home and its surrounding area, including physical features and the yard, when viewed from the outside. for surrounding homes. Similarly, guidelines around paint colors or exterior changes help ensure no one house negatively impacts the appearance – or value – of another. 

And yes, enforcement is real. Many HOAs have the legal authority to issue warnings, impose fines, place liensLegal claims or "holds" placed on your property by creditors when you owe money.liensLegal claims or "holds" placed on your property by creditors when you owe money., and in extreme cases, even begin foreclosure proceedings for unpaid fees or serious rule violations. 

Insurance and What It Covers 

One big-time benefit of living in an HOA community (particularly in a condo or townhouse) is the shared insurance coverage that’s often included. 

Most, but not all, HOAs carry a master insurance policy, which typically covers: 

• Damage to shared structures  

• Liability coverage for common areas  

Some policies may stop at the walls of your unit, meaning everything inside (like flooring, cabinets, appliances, and personal belongings) would be your responsibility and yours alone. Others might offer more extensive interior coverage, sometimes called “walls-in” insurance. 

So, Is an HOA “Right” For You? 

How should we say this? Whether an HOA feels like a blessing or a burden often depends on your personality, priorities, and how “hands-on” you want to be as a homeowner. 

Some Benefits of an HOA...  

• Well-maintained community spaces: Parks, pools, and walking trails are taken care of without you needing to do the heavy lifting. 

• Consistent curb appeal: Everyone follows the same “aesthetic rules,” helping safeguard your home’s value. 

• Shared responsibility: Major repairs to roofs, parking areas, or building exteriors are typically handled (and funded) by the HOA. 

• Community involvement: If you want to be involved in shaping your neighborhood, you can do your part and join the HOA board or vote on key issues. 

...And Some Potential Drawbacks  

• Added cost: HOA fees increase your monthly expenses, and special assessments can pop up unexpectedly. 

• Less autonomy: You’ll need to get approval for changes that might otherwise be your personal decision.  

In Short: Do Your Homework Before You Buy 

 Before putting in an offer on a home in an HOA community, ask your real estate agent to help you: 

• Review the HOA’s CC&Rs 

• Look into the HOA’s budget and reserves 

• Check meeting minutes for signs of community satisfaction (or unrest) 

• Confirm the home’s compliance with existing rules 

• Request a breakdown of what’s covered by the HOA’s insurance 

A well-managed HOA can provide peace of mind and quite the beautiful living environment. But understanding the all-important fine print before you commit can help you avoid surprises and ensure the community is the right fit for your present (and future) lifestyle.