Pros and cons of homeowners associations
Pros and Cons of Homeowners Associations
If you’re considering purchasing a condo, co-op, or townhome, you may want to familiarize yourself with the homeowners association or more commonly known as an HOA. Most developments that have shared building structures or common amenities in some cases, have an HOA to help manage / pay for the common elements.
In our Central Wisconsin area, HOA’s may look different than other parts of the country. So, let’s dive in… what are some of the pros of an HOA and what are some of the cons.
Let’s start with the positive. Pros!
- HOAs often include exterior building maintenance and groundskeeping in condos / cooperatives or townhomes, providing you with a relatively “low-maintenance lifestyle” which is appealing to some buyers. The HOA will often hire a company that will take care of the snow removal, lawn cutting, and repairing the exterior (siding, roof, decks, etc.).
- Amenities. Some HOAs have shared amenities that are amazing! That may include a shared pool, walking paths, pond, gazebo, playground, dog park… the list goes on and on. This isn’t as common in our Central Wisconsin market but some areas do have amenities.
- HOA’s give you “the owner” a voice at the table. The rules and regulations of the HOA can be influenced and changed over the years by owners getting involved in the process, giving you a chance to be involved.
Now to the negative. Cons!
- The cost. Some HOA fees can get quite high… sometimes that may deter individuals who do not want to pay the monthly fee on top of their mortgage payment.
- Restrictions and rules. Most HOAs have a list of rules or guidelines that residing residents must follow. Some people prefer more flexibility and privacy.
- Pets. Most HOAs have a list of approved number of pets per unit and size of pets. Some are not very restrictive, others are very limited, which can be a deterrent for pet-owners.
- Outdated processes. Some HOAs have lengthy processes and procedures for making changes or getting approvals. This can be burdensome for owners that are trying to make headway on a project but are being forced to wait.
If you are considering purchasing a condo, townhome or cooperative unit, take time to read through the association executive summary and bylaws. Understand what the association has outlined and weigh it against your needs. They can be challenging to understand and read, so if you have questions, reach out. Our team is happy to help.
Have a question or want to get in touch? Reach out to our team today, we are happy to help!