Understanding Real Estate Homeowners Associations, Part 1

Posted by Help Now on Tuesday, July 2nd, 2019 at 11:38am.

If you’re considering moving into certain subdivisions, planned communities or property villages, one area you may find yourself considering is the presence of a homeowners association. Abbreviated HOA, these associations may cover several community areas, from rules and regulations to neighborhood watch services and potentially several others.

At Daybreak Living, our real estate listings include numerous villages and communities that may contain homeowners associations. The presence of an HOA will be received very differently by varying home buyers – some absolutely want to be part of such an organization and take many benefits from it, while others view it as a hassle and would prefer to live in a community without one. In this two-part blog, we’ll go over all the areas you should be looking into if you’re considering moving into a home within an HOA community, from the benefits to the potential drawbacks and everything in between.

HOA Membership Fees

For starters, know that most homeowners associations come with basic fees for membership. Many HOA groups will require that every resident of a given community signs up and pays these fees, though some may allow residents to choose.

In the majority of cases, these fees will be limited to a few hundred dollars per month at most. This is the case for HOAs that are only responsible for a few areas within the neighborhood, such as access roads or similar areas. In other communities on the higher end of things, however, fees could include numerous shared amenity areas and may even reach the four- or five-figure range. Be sure you understand exactly what fees are associated with any HOA you’re considering, plus know what that money is going toward once you pay it.

Covenants or Restrictions

One area that some have issues with when it comes to HOAs is the restrictions or covenants they may place on certain areas. Some HOAs may restrict certain gardening or planting themes, for instance, or may place limits on the size of fencing you can install on your property. Still others may have restrictions on paint colors, driveway paving or several other aesthetic areas.

The goal here is to maintain a consistent appearance within the community, something many buyers are fond of. You should also check on any occupancy restrictions, however, especially if you’re looking to rent your home at any point in the future – some HOA bylaws may prohibit this.

Parking Concerns

In certain areas where parking is a concern, HOAs may help govern this area. They’ll often provide special parking assignments based on where you live, but you’ll want to find out whether the previous owner of your home can automatically transfer their space or parking rights over to you – or whether you might have to go on a waiting list that will make parking a major hassle in a limited area.

For more on areas to explore when it comes to homeowners associations, or to learn about any of our homes for sale or community listings, speak to the staff at Daybreak Living today.

About the Author:

Utah Dave - Neighborhood ExpertUtah Dave - Daybreak Neighboorhood Expert and Local Resident

My friends nicknamed me Utah Dave in high school because they said it didn't matter where we went in Utah, I would know how to get there and who we needed to talk to. The name sticks today as UtahDave has formed into a professional real estate network of Neighborhood Experts all across the state. I live in Daybreak with my wife and 4 amazing children. I enjoy dancing (which is how I met my wife Dawn) as well as traveling, coaching, and learning.

Leave a Comment

Format example: you@domain.com
Format example: yourwebsitename.com