Pros and cons of having an active Home Owners Association (HOA) on your property

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A homeowner's association (HOA) structure is standard in residential communities to ensure a cohesive and clean atmosphere. While the HOA can sometimes relieve the homeowner of some responsibilities, it can impose some obligations too.  

Essentially, a HOA is a governing body for a planned community, such as townhouses, condos, or single-family homes. HOAs are like landlords or property managers: they oversee a group of houses and provide certain services to maintain the community and its atmosphere by enforcing rules and maintaining them. A HOA is most common in planned communities and apartment buildings, and residents who purchase a house in a HOA community pay specific fees and dues to be a part of the community. 

Before buying a home that obligates residents to be part of a HOA, there are certain things they need to understand with regards to how the community and the association works. Here is a list of the pros and cons of living on a property with active HOAs: 

The pros: Increased home value along with leisure activities:  

  • Maintenance of Common Areas: No matter where you live, whether it's in a condo complex or a single-family home community, a HOA manages most of the exterior upkeep of the property. No need to worry about pest control, lawn maintenance, landscaping, etc. Most residential property managers handle the following:  

  • Systems include heating and cooling, electrical systems, plumbing, lighting, and elevators in common areas. 

  • Repairing roads, roofs, walls, and building components (especially in condominiums). 

  • Waste collection. 

  • Clearing snow and other weather-related excesses. 

  • Cleaning and painting building exteriors. 

  • Painting and cleaning of common interiors, including floors and walls 

  • Maintenance of Home's Exteriors: HOAs care for the exterior of homes within the community. Repairing or replacing siding, power washing, and maintaining the roof and fence of the house are all part of this process. An active HOA can potentially help save thousands of dollars a year.  

  • Leisure Activities: HOAs provide residents with several recreational amenities, such as pools, tennis courts, golf courses, playgrounds, and community centers. Some HOAs sponsor children's activities, like sports teams and holiday parties, and some provide frequent meet-ups and gatherings for adults. 

  • Conflict Resolutions Between Neighbors: A HOA can navigate problems between neighbors. The association can act as a mediator and observe if residents are violating a rule or regulation. Rather than discussing the issue with the neighbor and risking conflict, a HOA can better help resolve disputes between neighbors. 

  • Increases Value: A property with an active HOA sells for an average of 4% more than similar homes outside a HOA. Part of the reason could be that a HOA maintains the property much better by following rules that keep the property neat and safe.  

The cons: Meticulous guidelines and costly fees! 

  • Monthly HOA Fees: Because the HOA handles the upkeep of the common areas and the exterior of homes, homeowners who live within the community must pay HOA fees. Depending on the amenities within the community, the fees can range from couple hundred AEDs to several thousand a month. Unfortunately, HOA fees can't be categorized under a set rate and can sometimes increase. The association may raise the monthly fee if it doesn't collect enough funds to maintain the community. 

  • Repercussions for Untimely Payment of Fees: Don't downplay the importance of paying HOA fees. If the HOA cannot collect enough funds from residents, this can lead to a lack of funds to maintain the property. As a result, the community might lose its property manager, and the appearance and condition of the community can decline. These factors can negatively affect property values. There might also be legal implications of not paying your fees. 

  • Rules and Regulations: The HOA decides what color paint goes on the front door or shutters of every house that comes under the association and the type of front door and windows a home can have. The association can even place restrictions on outside decor and the number of vehicles allowed to park in the community. Violating the community's rules and regulations could result in a fine. For those looking to have fewer rules in managing their properties, this could be a negative factor. 

Owning a home is a great accomplishment, but maintaining it consumes a lot of time and energy. Purchasing in a community with a homeowner's association allows you to reap the benefits of homeownership while minimizing the amount of time you spend on maintenance. 

RealCube understands the importance of a close-knit community and provides the best solutions with its innovative community management software. It helps owners and related stakeholders to digitize, automate and manage all their community-related activities quickly and conveniently. With a channel that enables constant communication between the association members and residents, RealCube makes sure that no stone is left unturned when it comes to community management. Systematic arrangement of essential documents, monthly fees reminders, notifications to track maintenance requests and other activities happening in the community, keep a record of everything with the RealCube App! 


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