Many homeowners don't think about their homeowners' association (HOA), until something comes up. Understanding their role and how it impacts you and the neighborhood where you live is important.

What Is an HOA?

An HOA, or Homeowners Association, is a non-profit organization ran by a group of elected people (usually living in the neighborhood) who come together to manage a community. Some of the benefits of having an HOA include property value protection, maintenance and repairs to common areas and having amenities and/or services provided. HOAs also have the power to enforce rules and regulations (outlined in the covenants or by-laws for the neighborhood). While it may be frustrating at times to have rules as to what you can and can't do with the home you purchased, these rules can be helpful when it comes to maintaining property values and keeping the neighborhood looking nice. Below are a few of the benefits of living in a community with an HOA.

Higher Property Values due to Architectural Controls

To make structural changes or changes to the exterior of their homes, the residents in a community with an HOA usually have to seek permission from the HOA and follow the guidelines set for the neighborhood. The requests are reviewed by the HOA board members keeping the aesthetics of the neighborhood in mind. The HOA has rules to ensure that the neighborhood maintains its beauty and consistency. As a result, homes remain attractive and property values generally stay high.

Access to Amenities

When you live in an HOA community, you usually have access to a wide range of amenities that are convenient and enjoyable. While these vary in each community, they could include things like a swimming pool, tennis courts, a playground, a gym, a clubhouse and walking paths. And the best part is, you don't have to take care of them yourself. The HOA handles all of that for you. Some HOA communities may have utilities included in dues as well.

Common Area Maintenance

Depending on your neighborhood, your HOA will generally take care of maintaining the common grounds including making sure your entrance(s) looks nice, pruning and adding landscaping as needed and keeping private streets in good condition. If you live in an attached home, you will likely have the exterior of your property maintained as a part of your dues as well.

Increased Community Engagement

HOAs will usually provide the members opportunities to socialize by hosting occasional events for the community. This helps people to connect with each other and make friends within the neighborhood. It also creates a sense of community and ownership, which can lead to a greater sense of pride in where you live. Regular meetings also allow a forum for people to voice their concerns or share information with one another.

When considering buying a home, make sure to ask about the HOA - not all are the same and it could be a big deciding factor in your purchase.