Pros and Cons to Being a Member of an HOA - 5 Things to Consider
An HOA is an association established for the purpose of collectively managing areas and amenities in a community. The association is usually run by a volunteer board of homeowners who manage the community and its budget. The association will take care of maintenance, repair, and future development regarding common areas, roads, wells, pools, fences, infrastructure, and the like. Of course, HOAs vary in how much they govern, so before you buy a home at the Lake of the Ozarks, you will want to look at the covenants and by-laws to understand how your HOA will affect you if you are a member of the community.
1) Amenities.
One of the biggest advantages to living in an HOA is that
there will usually be amenities available. For instance, there may be a
community dock with a swim deck. The
cost of purchasing a slip in the community dock is much less than it would cost
to have a private dock with an equal sized swim deck. But you will have to share the community dock
and abide by any rules and restrictions that come with it, unlike a private
dock where you can do what you want. Maintenance
of the community dock is also shared with other slip owners which can be significantly
less money than it would take to maintain your own private dock. Other examples of such shared amenities would
include pools, boat ramps, club houses, playgrounds, etc.
2) Aesthetics.
If you are someone who wants your neighborhood to look good
and be uniform in appearance, an HOA might appeal to you. HOAs will generally set basic standards for
how homes should look and be maintained.
This can help protect you from lost property value due to a messy neighbor.
3) Community Standards.
HOAs can also have rules to limit things like noise level,
commercial activity, rental policies, and other behaviors. So instead of having to confront your
neighbor personally, you can allow the HOA to notify the neighbor about the
rules and take action such as fining for non-compliance.
4) Legal Liability.
This can work both ways.
Being in an HOA can reduce your liability because the HOA will have its
own insurance policy and take care of protecting or enforcing the covenants for
you. But if the HOA becomes involved in
a legal dispute, that can hurt your property value and ability to sell your home at the Lake of the Ozarks.
5) Dues.
The fees associated with being in an HOA can range
dramatically. But as with the community
dock example, because you are sharing the costs among everyone in the community,
people are usually able to enjoy many more benefits for a lower cost. But if you don’t use the many amenities you
are paying for, it may not be worth it for you.
Ultimately, with 25% of Americans being members of HOAs, 63%
think their HOA’s rules are beneficial to their property value. Plus, there is an 85% approval rate among
Americans living in communities governed by HOAs. Having access to amenities, sharing
the cost of maintenance and responsibility for upkeep, and enforcement of
community standards are the most obvious advantages. But potentially being told what color your
front door can be, when to mow your lawn, or whether you can rent your property
may be a deal breaker for some.
The truth is, whether being a member of an HOA is right for
you or not is a matter of personal choice in balancing the advantages with restrictions, and deciding which is more important. If
you have questions or still aren’t sure if you want to buy a home within an HOA at the Lake of the Ozarks, you can trust Your Favorite Real Estate Team
to help you understand the details in order to make the best choice you can for
your future home at the Lake of the Ozarks.
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