Imagine driving by an aesthetically beautiful community with well-maintained landscapes and community shared amenities like a dog park or a swimming pool. You decide to call your realtor and come to find out, it costs $200 a month to be part of that community. Would you still live in that community?
Before answering, understand who maintains the community, what are the pros and cons of living in that community, why does it cost to be part of that community and how does it help you as a homeowner to own a home in that neighborhood.
What is a Homeowners Association (HOA)
The homeowners association is a private organization in a community that is run by the members of that community with shared responsibility of maintaining that community to all residents. Although not all, many communities have homeowners associations in order to have a well-maintained and orderly community. The HOA board is made out of homeowners, voted by other residents in the community. The committee holds regular meetings to share and discuss important changes and decisions. It is essential for you as a homeowner to participate in these meeting to be aware of all the changes that may affect you and participate in decision making.
Memberships are automatic and mandatory when purchasing a home in that neighborhood so it is important to understand the rules of the HOA.
What Does an HOA Do?
- Establish and enforce community rules.
- Maintain common areas like landscaping, snow removal, parks, and sidewalks.
- Manage shared amenities like lobbies, gyms, and ensure they are functioning well for residents.
- Manage finances through collecting fees and using it to fund services for the community.
- Organize social events and protect property values by enforcing community maintenance to all residents.
HOA Fees and Rules
The HOA fees and rules vary based on communities. HOA fees can go anywhere from basic to premium and the average fee in Maryland is $281 a month. These fees can be monthly or yearly, depending on the rules of the HOA. If fees are late, the residents will be charged a late fee of no more than 10%.
Some common rules include
- Fine amount set by HOA
- Guidelines for property appearance, maintenance, and architectural changes.
- Rules on use of amenities such as pool/gym hours.
- Parking/vehicle restrictions on resident and guest parking.
- Pet restrictions and behavior guidelines.
Pros and Cons of Living in an HOA
Pros
- Well-maintained community with improved quality of life in that community.
- Increased property value in the long run.
- Shared amenities
- Neighborhood consistency and a sense of unity between residents.
Cons
- Monthly fees
- Rules and restrictions which may take away some of the homeowner’s freedom.
- Possible special assessments
What Maryland Home Buyers Should Know
- Ask for the HOA resale package/documents during the purchase process
- Read the bylaws, covenants, budgets and meeting minutes before closing
- Don’t assume every HOA offer the same amenities or has same restrictions
- Fees can be different depending on the community.
Final Thoughts
Homeowner’s Associations (HOAs) are created to maintain the community organized and well presented. The costs of these falls into the hands of the residents but the residents also benefit from amenities, well maintained neighborhood and potential increase in their home value.
Ready to Take the First Step?
Let’s talk. whether you’re 6 months out, or ready to start touring homes next weekend. I’d love to answer your questions and help you put together a plan.
Call or text me to schedule a free buyer consultation.
or send me a message and let’s figure out your best next step together.
Have questions about buying a home in Maryland? Drop them in the comments or reach out directly. Happy to connect!
Frequently Asked Questions
Is an HOA Mandatory?
Yes, only if you are purchasing in a community with a Homeowner’s Association. Membership and dues are mandatory to be part of that community.
Can an HOA fine Homeowners?
Yes, HOA can find homeowners for not following HOA rules such as not paying dues, unmowed lawn, parking violations, etc.
Do all neighborhoods have an HOA?
No, not all neighborhoods have an HOA.
Can I refuse to join an HOA?
No, if you are a buyer interested in purchasing in a neighborhood with an HOA, membership is mandatory. If you already own a home in the neighborhood where HOA might form, then you may be able to opt out of joining.
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