What is an HOA? What are the Benefits and Down falls of an HOA?Terry Riffe | April 28, 2016
First, let’s start with what is an HOA? Then we will discuss the benefits and down falls.
An HOA, or Home Owners Association, are legal entities that govern a community and help to maintain and manage common areas. There is usually an elected Board of Directors that consists of volunteer home owners in the community. Annual dues are required from all home owners that live in the community and are used for various necessities such as upkeep of common areas like community pools, parks and landscape and also insurance to protect home owners form any liability from those using these facilities. There are both benefits and down falls to living in a community with an HOA.
What are some of the benefits to living in a community with an HOA?
- Your community is regulated. Your neighbor can’t just paint his home purple with yellow polka dots, or grow a jungle. These actions would deflate the value of your home.
- The HOA ensures that all common areas are maintained and well taken care of. Again, this ensures a higher value to the community
and the value of your home will not be deflated.
What are some of the down falls to living in a community with an HOA?
- Definitely the cost. HOA fees can range from hundreds of dollars a year to hundreds of dollars a month – and everything in between. Be sure you understand the HOA financial requirements of any community you may be interested in.
- A highly regimented HOA may be suffocating. Constantly receiving warnings regarding such issues as your trash bin being left out too long, or someone not approving of how you parked or the number of guests you had at your home can be extremely annoying.
There are usually benefits and down falls in all communities, especially those with an HOA. What is important is to buy a home in a stable community with a secure, low cost and friendly HOA.
If you have any questions regarding communities in the Central Florida area email me An@OrlandoVacationRealty.com or call me (001)800-0888.