What you should know about Homeowners Association (HOA)
Have you seen subdivisions wherein they have amazing landscapes? Have you ever wondered why there are communities that seem to be so much quieter than others? You have probably seen areas that boast excellent features such as pools, clubhouses, and other fun activities. A lot of people are able to enjoy this type of lifestyle due to their management by a Homeowners Association.
This why before you decide to get a house in a particular community, you have to know their covenants, conditions and restrictions (CC&R) . You want to make sure you are okay with the rules on what you will be allowed to do on your own property. One suggestion is to find out if the Homeowners Association strictly enforces the rules or if they’ve been willing to let some things slide in the past, especially if you’re someone who doesn’t like the idea of having restrictions on your property.
How much the HOA fees will be is contingent upon the number and kind of features they manage. The money that is collected periodically will be used for the up-keeping roads, street lamps, bodies of waters and many others. The monies are often used for funding whatever recreational facilities they might have, such as clubhouses, sports facilities, and other type of outbuildings (which may be restricted to members only).
For newly built subdivisions, where the developer handles the HOA, may have lower fees to start with. Once the community begins to grow with new homeowners moving in, the HOA duties will be handed over to them. At that point there will probably be an increase in the HOA fees. They may also establish fines or penalties in the event their code is broken.
Tips for Homeowners
The purpose of the Homeowners Associate is to help protect both your interest and value of your property. And you’ll find that most of the quality neighborhoods have a HOA. So, prior to purchasing a house in any particular subdivision, you need to research the HOA. You’ll need to decide if their fees, and the rules concerning increases, are affordable for you. It’s important that you read through them carefully, as you’ll be required to follow them once you have moved in.