Homeowners associations or HOAs are there to serve the homeowners and the community. Unfortunately, they have gotten a bad reputation because of misconceptions and misinformation. And the most common (and reputation damaging) misconceptions about HOAs is that they are too restrictive; too strict to the point of being “dictatorial.”
But if one were to shift their perspective and truly see HOAs from the point of view of an entity tasked to take care of the community and its homeowners, you’d probably gain a better understanding of why rules and regulations are imposed in the first place.
Here are a few things to know about :
The Board of Directors has a say in the rules and regulations
HOA rules and regulations are generally first drafted, decided on, finalized, and implemented by the property developer. When the HOA is turned over to the homeowners, there will be an election for the Board of Directors and members of the Board will then be the ones to implement these rules. They may also vote to add, amend, or remove certain stipulations. Board members are homeowners within the same community as well, which means they understand the sentiments and needs of homeowners.
The HOA preserves the community
Within a community, specific standards are expected to preserve the community’s good reputation. There are guidelines for public behavior, parties, street parking, use of common areas and facilities, structural design, and such. All these are meant to maintain a certain standard of living meant to preserve the community’s reputation and way of life.
HOAs may affect property value
In relation to the above, how well or how poorly the HOA preserves the community may directly affect property value in the area it covers. If your HOA’s rules and regulations are well-implemented, maintaining community standards will be easy and this benefits your property as well. While it is not a “sure-fire” way to protect or enhance property values, they certainly won’t negatively impact others’ first impression of the homes within your community if they are followed. And this could be good if you plan to sell your home in the future.
Adversely, if the HOA doesn’t do its job, the community’s overall value may decrease, which could directly impact your home’s value.