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Pro's and Con's of Home Owners Associations



If you’re searching for a new home, there is a high possibility for you to come across a few properties registered in a homeowners association. The city of Miami is known to have over 100 different homeowners association with thousands of homes in the city governed by them. Homeowners associations in the United States are on the rise and according to a census by the U.S Census Bureau, over 59% of newly constructed homes across the nation in 2014 were registered under a homeowners association and that’s up from the 46% of 2009.

Of course, amenities like clubhouses or swimming pool can make turn the realities of living under homeowners association, but it is important to understand both the pros and cons so you can make informed decisions whether to associate yourself to an HOA or not.




Pros of a Homeowners Association

  • Provide Extra Amenities: Buying a property registered under an HOA means access to additional amenities including fitness center or tennis court that you might not be able to afford without an HOA, and for those who can afford, they may not be able to enjoy such amenities in close proximity to their home.

  • A Perfect Neighborhood: A Homeowners Association has the power to set up rules that ensure the condition of the neighborhood. They establish strict guidelines about keeping laws manicured, parking boat restrictions, and other large vehicles on the street, and a control of exterior paint colors.

  • They Reduce your Responsibility: They carry out services like snow removal and other maintenance that was to be done by you. The fees you pay to an HOA are used for such services.

Cons of a Homeowners Association

  • HOA Dues: When buying a home registered under a Homeowners Association, you have to add HOA dues to your purchase budget. The value for the dues would vary, but on average runs within hundreds of dollars per month.

  • Foreclosure: If you happen to fall behind on your fees, your home might be at risk of foreclosure from the HOA. The process of an HOA to foreclose on your home varies by state.

  • A lot of Restrictions: Any modifications you may want to carry out on the exterior of your home will be difficult in an HOA community. Before making any modifications, you must submit plans describing location, height, colors, shape, and materials for the project in order to be approved by the HOA. This can be a limit to the type of work you want to do and would slow down the process.

Renting limitations: HOA may put in place some renting restrictions in an area.

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