According to a 2013 study, more than 63,000,000 Americans live in homes governed by home owners’ associations (HOA). More than 70% of these homeowners are happy being in a HOA and reckon the associations increase the value of their property, while the other 30% would rather be in full control of their homes. You probably are in a HOA yourself or are contemplating buying property in a HOA-governed community in future. What does this mean to you? Who is in charge of a HOA? Can you opt out of a HOA at will?
These details will help you understand HOAs and some of the rules you may be subject to as a member.
- Every HOA has its own rules
Home owners’ associations are charged with creating and enforcing the rules, i.e. covenants, conditions, and restrictions (CC&Rs) to be adhered to in the housing area under the HOA. If you have been in another HOA before, do not make the mistake of assuming your new HOA subscribes to the rules of the previous one. As soon as you move into your new property, check with your Phoenix AZ HOA management team and let them take you through the rules.
- Some HOAs may not permit property renting
Imagine purchasing property thinking you can rent it, only to learn that your HOA doesn’t allow it. How disappointing would that be? HOAs are quite within their rights to take that privilege from you, unless, of course, you were there when the rules were created.
- You make the rules
The rules of most HOAs are made by the homeowners themselves. The management’s work is to ensure every homeowner is abiding by these rules. So, if you have a problem with an existing rule, you can talk to your neighbors to see how many of them share your sentiments. You can also inform the management so they can raise the issue in the next board meeting.
- You could face consequences for something you didn’t do
If you buy or move into a property that is not in compliance with the HOA’s rules, you will be needed to make the necessary changes as soon as possible or risk being punished. Most HOAs will make a point of informing you about any rules that your property is not in compliance with as soon as you move in.
- Homeowners’ associations cost money
Monthly dues for most HOAs in Arizona range between $100 and $700. Learn about your to-be HOAs monthly rates before committing.
- HOA membership increases your property value
While some of the HOA rules may feel overly oppressive, there are a lot of perks that come with being in a homeowners’ association. For example, members may not be allowed to paint their houses whichever color they like or even park in some parts of the housing area. This adds to the aesthetic appeal of your home and significantly increases its market value without costing you a penny.