Understanding Homeowners Associations

One of the many reasons I decided to get my real estate license was to educate others on the things that I wish I understood better before buying and selling my first home. Among those, is what HOAs are and how they can impact your living experience — for better and for worse.

What are Homeowners Associations?

Homeowners Associations (or HOAs) are organizations that manage or maintain a specific subdivision, planned community, or condo building. They require monthly fees for things like common area upkeep (pools, landscaping, and sometimes even roads, etc.) and can range anywhere from around $25 per month to upwards of $350+, depending on where you live and what the amenities are.

Who manages them?

Smaller HOAs are sometimes self-governed by property owners, but often they are managed by a third-party company that is paid for through a portion of monthly fees.

What else do they do?

HOAs enforce community bylaws and CC&Rs, which can determine a number of things including if you can rent out your home, what improvements you can and cannot make to the property, and other regulations, such as street parking restrictions.

What risks are involved with HOAs?

If you’re buying a property that’s governed by an HOA, it’s very important that you know what you’re getting into before you do so. HOAs have the right to put a lien on your property and foreclose on you if you don’t pay your monthly fees or accrue unpaid fines.

In the case of condo communities especially, during your due diligence period you’ll want to make sure that the HOA has enough money in “reserves” that you aren’t spending significantly more than you expected on special assessments for maintenance and improvement projects.

For any questions regarding HOAs and buying or selling a home, contact me.

Julia Van Valkenburg, Realtor

OMNI Homes International

julia@buyselltucsonhomes.com

520-275-3514