The Pros And Cons Of A Homeowners Association

A homeowners association (HOA) is a group of owners in your subdivision, or complex, that pool money together to help maintain the area. Many HOAs have an annual fee, although some break this out into a monthly payment system. This money goes to improve or maintain the property or neighborhood. Your real estate agent at the Lake of the Ozarks can help you distinguish between a property with or without a homeowners association. There are both positive and negative aspects that go along with belonging to an HOA.

Pros of Homeowner Association

Community Appearance

Many homeowner associations have regulations for the homeowners, such as, a well-maintained lawn, special trash bin compartments, and designated exterior home colors. This can help create a uniform look throughout the neighborhood. Maintenance issues can also be handled by an HOA, if everyone in your area contributes to snow removal, for example, it can help cut down on the cost for each individual owner.

Recreational Features

A pool, tennis court, and walking path are among some of the positive features for a homeowners association to offer. Recreational items are added perks to paying HOA fees. This can help make a safe environment in which a family can have fun and enjoy the area.

Area Management

A homeowners association offers an added benefit of mediation. If an issue arises with a neighbor, a resident can report it to the HOA, who will in turn attempt to take care of the problem. A board is usually in charge and make many of the decisions for the entire property or neighborhood, leaving less decision making for the homeowner.

Cons of Homeowner Association

Strict Rules

If a resident buys a home in an HOA, the rules can regulate how they are allowed act or what they can do with their property. Sometimes, a homeowners association does not allow business vehicles to be parked outside of homes; this can be a burden for someone who owns their own business, and parks their work vehicle at home. A HOA can restrict what items are allowed outside a home.

Investment

A negative impact a homeowners association has on the residents, is the monthly or yearly investment. This fee is normally known upfront when you purchase the home and should not be a big surprise. The board can vote to increase the fees, or even place a special assessment on homeowners for major repairs or projects. An additional fee may not be calculated in an owner’s budget, and could cause financial strain.

Area Management

Area management can be both a pro and a con. A negative aspect is that a board makes most of the decisions that affect all property owners in the HOA. It depends who is on the board, and how seriously they take their role. Under management and over management in a homeowners association can both be a con.

A homeowners association can be seen as a good or a bad aspect to a home, depending on your personality and the type of place in which you wish to live. Some freedoms can be limited with an HOA, but usually, the appearance and management of your neighborhood will be impacted positively. Ultimately, it is up to the homeowner and their personal preference, if a homeowners association would be a good fit. A knowledgeable real estate agent can help you find a home at the Lake of the Ozarks that is in, or out, of a homeowners association. 

Susan Spica
Professional REALTOR®

BerkShire Hathaway HomeServices
101 Crossings West, Ste. 202
Lake Ozark, MO 65049

Office: (573) 365-6868
Susan's Cell: (573) 280-0484