What Is HOA and How Much Does It Typically Cost?
You just moved into a new location and now you’re seeing HOA on some documents you’re receiving. You’re probably wondering how did I get this far and not know what an HOA is? Well, let’s lay it out.
What is HOA?
Homeowners Association, or HOA, is an organization in your neighborhood that makes and enforces rules for the properties that are within its jurisdiction. The homeowners that purchase a property under an HOA now fall under their rules and fees. The HOA doesn’t just bark but they’ll bite when they need to.
The HOA can have serious legal power over the homes that fall in their jurisdiction. The HOA has a board of members that are elected who are in charge of overseeing and enforcing rules. They might take up an issue with major things such as certain landscaping or smaller things such as changing the color of your door. To do any serious changes to your home you’re probably going to have to submit an application to your HOA. Failure to comply can result in some big charges.
What Does HOA Charge?
Depending on the size, location, amenities, of where you are staying it will vary. Most likely your property will fall within the range of $100 to $400 per month. Some high-class locations charge up to $4,000, but for that price, you practically get a butler that’s ready to serve. This money goes to maintaining the amenities as well as saving for any emergencies or special projects the community may need (fixing potholes, adding new parking, new pool).
An area the HOA might charge you is if you’re not complying with the rules. Another fee might be a special project they hope to accomplish through extra charges in the neighborhood, such as parking lots and sidewalks.
Downsides of HOA
Well, obviously the extra monthly charge isn’t something many people love or can even afford after rent. Some homeowners think the HOA is too harsh with their restrictions and that their policies hold back the uniqueness of a house. To get approved for renovations the HOA board has to approve, which can be grueling at times.
Benefits of HOA
The HOA will make sure that the properties maintain a certain level of excellence. This means anything that might lower the property value of neighboring houses will be shut down quickly. Sometimes they will provide snow removal and trash pick up as well as law services. The HOA management services may provide amenities such as landscaping, pools and tennis courts that are available for all the HOA members. The community standards should support stable property values.