The Pros and Cons of HOAs

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A modern residential neighborhood with well-maintained homes under the management of a Homeowners Association (HOA). The properties feature manicured landscaping, clean sidewalks, and pristine exteriors, highlighting the benefits of HOA living.

This probably goes without saying, but homeownership comes with lots of expenses. Beyond mortgage and insurance payments, you have to account for property taxes, maintenance costs, utilities, and a seemingly endless stream of financial obligations. If you live in a building or neighborhood that’s managed by a Homeowners Association, that’s another one to add to the list. Is it worth it?  

 

What’s an HOA? 


Homeowners Associations—or HOAs—are organizations that set and enforce the rules and regulations of certain residential communities and provide common services. These organizations collect dues from homeowners in the subdivision, neighborhood, or building in exchange for maintaining the standards set forth in the community’s bylaws.  

 

How much does an HOA cost? 

HOA fees vary widely based on a number of factors, including the cost of living in the area, the services and amenities provided, the local real estate market, and state and local laws. The monthly cost can range anywhere from $100 to upwards of $1,000, but $200 to $300 per month is common. 

 

Is an HOA worth it?  

The short answer—it depends. Here are just a few of the factors that will help form your opinion: 

  • Your priorities as a homeowner 

  • Your household budget

  • How much the HOA dues are 

  • The value of the services offered
     
  • How you feel about the HOA’s bylaws 


If you’re planning to move, you should give some thought to whether living in a home governed by an HOA is for you. It can help to weigh the pros and cons before you start your home search, determining if an HOA is a deal breaker, or capping the amount you’re willing to pay for one.  


A diverse group of people sitting in a casual meeting or discussion setting. In the foreground, a woman is holding a brochure or document with an aerial map or layout and smiling as she talks to another person. An older man with glasses and gray hair is seated next to her, looking at the camera. Others in the background appear to be engaged in conversations, holding notebooks and coffee cups. The atmosphere is relaxed and collaborative.

3 pros of a Homeowners Association 

A good HOA isn’t just another dent in your monthly budget. It can actually benefit you in a number of ways. Here’s some food for thought:  

  1. An HOA can help sustain your property value.

    Let’s face it—some neighbors aren’t quite as meticulous about caring for their homes as others. And all it takes is one eyesore on the block to throw off the whole vibe. An HOA that sets standards and enforces rules about lawn care, upkeep, and other maintenance issues can help preserve the aesthetic of the whole neighborhood.
      

  2. An HOA may give you access to amenities and services.

    From fitness centers to playgrounds, pools, and tennis courts, many HOAs provide and maintain community facilities that homeowners can take advantage of. Maintenance and upkeep of common areas is another perk.     

  3. An HOA can handle neighbor disputes.

    While you’d like to think you’ll never have one, disagreements between neighbors are a reality of community living. It’s good to know that disputes over issues like excessive noise, unkempt lawns, and parking can be mediated by a neutral third party. 

 

3 Cons of a Homeowners Association 


There’s always a flip side. Here are a few potential drawbacks to living in an HOA-regulated community:  

  1. An HOA can be restrictive.

    The same rulebook that keeps your neighbor from turning their front lawn into a junkyard can keep you from something as simple as putting up a privacy fence, a deck, or recreational equipment. Get familiar with the HOA’s rules and make sure you can live with them. 

  2. HOAs can raise their fees.

    Keep in mind that your monthly HOA dues aren’t set in stone. Especially if you are operating on a strict household budget, you’ll want to carefully read the HOA’s governing documents to learn as much as you can about their rules around fee increases and limitations. 

  3. Not all HOAs are created equal.

    Poor management can turn your dream home into a nightmare. Gather all the information you can about the HOA that governs your neighborhood of choice so you can make a smart decision.  

 

Your agent is your best friend 

The real estate journey can be complicated. You want someone on your side who knows how to help you navigate it with the least amount of stress. On Nestfully, it’s simple toconnect with an experienced agent who has tons of in-depth knowledge about your local market and how to get the best results from your home search. Take the first step now!   

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