A recent YouGov survey estimates that one in five Americans live in a community governed by a homeowners’ association (HOA). These commonplace organizations often have a bad rap. However, not everyone has a homeowners’ association horror story.

We spoke to several experts to understand more about the HOA benefits a well-implemented association offers and why it’s important to do your research before signing on the dotted line.

What Is an HOA?

An HOA is typically a non-profit organization comprising an elected board of directors from within the designated homeowning community. The board sets rules for the properties and residents. Licensed Realtor® Jonathan Owens explains that every state has different regulations and ways of handling HOAs.

When you purchase a home within an HOA community, you become a member of the association and pay fees that go toward the upkeep of shared spaces. HOA fees are typically higher for townhomes or condos than for those with single-family homes within a community. “A condo association has to be prepared to address issues with the roof, the parking lot, the stairwells and elevators, in addition to the amenities,” board-certified realtor Désirée Ávila says.

Why Do HOAs Have Such a Bad Rep With Homeowners?

While Owens believes a well-run HOA can benefit homeowners within the community, he says that HOA management companies earn a lot of the bad reputation they receive. “My experience with a lot of management companies has been that they lack empathy and, at times, basic competence to do their job.”

Real estate coach Dr. Lee Davenport says that discriminatory practices persist despite the introduction of the Fair Housing Act. “Studies and HUD complaint filings indicate that some (not all!) HOAs continue to practice unfair housing, such as uneven rule enforcement, hostile environments, and indirect methods of discouraging residents of various protected classes (like religion, nationality, etc.)⁣⁣,” she says.

Ávila also points out that some people find the rules over the top, and sometimes, HOAs may not be good stewards of the funds they collect.

Benefits of HOAs

There are a variety of HOA benefits that homeowners can reap from being part of a well-run one.

HOAs handle maintenance

One of the biggest HOA benefits is their involvement in maintenance. Most keep the communal landscaping in good shape, and if they don’t handle private yard maintenance, HOAs enforce rules to ensure residents keep on top of things. “HOAs offer assurance that your neighborhood won’t have any eyesores—homes with untamed lawns or broken cars strewn about the property,” real estate investor Jerry O’Reilly says.

HOAs can boost property values

“[Well-managed] HOAs protect community standards and indirectly protect property values, which is a huge positive,” Ávila says. A tidy, well-maintained community with helpful amenities and desirable shared spaces can make your property more attractive—and potentially more valuable—if you want to sell it down the line.

HOAs give you access to amenities

“For [HOA] communities with amenities, you also get the benefits of pools, playgrounds, tennis or pickleball courts without additional memberships or upkeep,” Owens says. It can save you time and money when a wide range of amenities are on your doorstep.

HOAs enhance security

Some HOA communities have gated entry and security personnel to make your home safer. This can be appealing, especially if you live alone, are away from home often, or have young children who enjoy playing outside.

HOAs help manage neighborly relations

HOAs often have enforceable regulations relating to noise levels, home and yard appearance, parking restrictions and more. “A resident would not be able to paint their house neon pink (this actually happened) to irritate their neighbors because the HOA would step in,” Ávila says.

HOAs preserve architectural integrity

If you picked your home because the neighborhood has a particular architectural style, being part of an HOA can provide assurances that these features remain. “Many [HOAs] restrict exterior upgrades, including paint color and any additions to the structure itself,” O’Reilly says. “They also restrict things like above-ground pools, satellite dishes, and unsightly monster yard toys.”

HOAs can bring a sense of community

Well-run HOAs can boost community engagement. Some hold social events that can help you better integrate into your neighborhood.

FAQ

How do I check if an HOA is the right fit?

Ávila recommends requesting a copy of the HOA’s bylaws and rules and reading through both before making a purchase. Davenport also recommends doing further due diligence. This includes finding out if any complaints have been filed against the HOA and how easy it is to vote out existing leaders, talking to current residents to gauge the cooperativeness of the HOA leadership, and being willing to serve to influence and improve policies.

About the Experts

• Désirée Ávila is a Board Certified Realtor based in South Florida with almost a decade of experience of dealing with HOAs.
• Dr. Lee Davenport is a Strategic Coaching Advisor at Real Estate Bees. She is a nationally respected real estate coach, thought leader, author, and international speaker.
• Jerry O’Reilly is a seasoned real estate investor who works at Cash Home Buyers Crew and regularly deals with HOAs.
• Jonathan Owens is a licensed Realtor® with over 15 years of experience. He has also been the President of an HOA.

Sources

• YouGov: “Residential rules: How Americans view HOAs and their influence” (2023)