When purchasing real estate, there are a lot of factors to take into consideration. You consider price, neighborhood and proximity to other locations. Another consideration should be whether the property is part of a homeowner’s association.
According to the U.S. News, a board of volunteers runs HOAs and oversees maintenance, trash pickup and enforces community rules.
What power does the HOA have?
When you purchase a piece of property, you agree to the rules of the HOA. The Uniform Common Interest Ownership Act addresses general legislation for HOAs. When you enter into a contract with the HOA, you agree to follow the rules. If you fail to follow the rules as a homeowner, the HOA can take action against you.
Make sure you understand the fees you pay as part of the HOA. You should factor the dues into your monthly costs. The HOA can put a lien on your property if you do not pay.
How can you impact the HOA’s rules?
If you own property in an HOA, you have power. Most HOAs have board meetings open for all members to attend. Go to meetings as often as possible, so you input future decisions. Most property owners feel restricted because they do not know how to weigh in on the decision-making. You may want to consider running for a board position so you can learn who your neighbors are and have a role in decision-making. On the board, you can help decide the bylaws and costs associated with being a part of the HOA.
In many cases owning a home as part of an HOA can be more cost-effective and worth it.