Factors to Consider Before Buying in a Homeowners Association

In today’s market, most new housing developments, especially planned communities and gated communities, are part of a Homeowners Association (HOA). Whether you’re excited about the idea of HOA living or hesitant about the rules and regulations, these associations are more common than ever.

While HOAs can help maintain property values, ensure community standards, and provide access to shared amenities like fitness centers or tennis courts, they can also introduce additional costs, restrictions, and unexpected challenges.

Many homeowners discover too late that the community rules don’t match their lifestyle. That’s why understanding the factors to consider before buying in a homeowners association is essential, especially when it comes to reviewing HOA documents, evaluating monthly fees, and assessing the overall fit of the association with your long-term goals.

What Is an HOA?

A Homeowners Association (HOA) is a governing association responsible for maintaining the common areas, upholding community standards, and enforcing rules and regulations within a residential development, often in planned communities or condo buildings.

When you purchase a home in an HOA community, you’re agreeing to follow the Covenants, Conditions, and Restrictions (CC&Rs), also referred to as governing documents, and pay monthly dues or regular fees that support neighborhood maintenance, landscaping, and community amenities.

Most associations have the authority to enforce rules, make financial decisions, and coordinate services like structural repairs, insurance coverage, and upkeep of shared amenities.

The Pros and Cons of HOAs

Benefits of a Homeowners Association (HOA)

• Helps preserve property values by enforcing community standards and maintaining common areas.
• Provides access to shared amenities like fitness centers, tennis courts, pools, and walking trails.
• Promotes a cohesive, well-maintained appearance across the neighborhood, especially in gated communities or planned communities.

Potential Drawbacks to Consider

• Strict HOA rules may limit exterior painting, landscaping changes, or other personal modifications to your property.
• Mandatory HOA fees or monthly dues may rise unexpectedly and could include special assessments for major repairs or upgrades.
• Some homeowners may find the rules and regulations too restrictive, especially in communities with overly involved board members.

HOAs work well for many property owners, but others may find the restrictions frustrating. It’s important to weigh the factors to consider before buying in a homeowners association and ensure the community rules align with your lifestyle.

1. Not All HOAs Are Created Equal

Every Homeowners Association (HOA) is different. Some HOA communities are well-managed, transparent, and contribute to rising property values, while others may feel overly strict, inconsistent, or even mismanaged.

Most associations have their own structure, rules, and personalities, often shaped by the involvement of the HOA board members and how effectively they communicate with community members.
That’s why part of your due diligence should include evaluating how the specific association operates—its financial decisions, level of transparency, and reputation among current homeowners.

Review HOA Documents Thoroughly

One of the most critical factors to consider before buying in a homeowners association is taking time to review the HOA documents and governing documents provided during escrow. These include the Covenants, Conditions, and Restrictions (CC&Rs), also referred to as rules and regulations, which outline what’s allowed (and what’s not) in the community.

Buyers are typically given seven days to read these materials, but many skip this step, often leading to unexpected costs or rule violations later on.

Even though the documents may be dense, they answer essential questions like:

• What types of structural repairs or modifications require approval from the board or Architectural Review Committee?
• Are there limitations on pets, vehicles, short term rentals, or exterior decorations?
• How does the HOA board handle disputes and enforce rules?

Understanding the conditions and restrictions (CC&Rs) upfront helps you avoid surprises and make better financial decisions before moving in.

Ask the Right Questions

Reading the HOA documents is just the start. Buyers should also ask direct questions to better understand the HOA’s finances, operations, and long-term impact on their homeownership experience. Key questions include:

• What do the monthly fees, regular dues, or annual HOA fees actually cover—landscaping, insurance, shared amenities, or other common areas?
• Are there restrictions or community rules that could impact your lifestyle (like pet limits or parking)?
• How does the HOA board manage the reserve fund, and are there financial statements or reports available to review?

This level of due diligence can help you avoid red flags and better assess whether the association is financially healthy and aligned with your expectations.

2. Get to Know the Neighborhood

While reviewing governing documents and meeting minutes is helpful, sometimes the best way to understand how a homeowners association operates is by observing the community firsthand. The appearance, upkeep, and overall vibe of the neighborhood can tell you more than paperwork ever will.

Drive Through the Community

A quick drive through a planned community or gated neighborhood can give you a real-world view of how strictly the HOA rules are enforced.

If you spot RVs, non-standard fencing, or backyard sheds, chances are the association is more relaxed on property modifications. But if the homes all look identical and the neighborhood is exceptionally well-maintained, the HOA board is likely more strict about community rules and structural guidelines.

Want to install solar panels, repaint your home, or park a boat in the driveway? See if current owners have done the same. If not, these modifications may be restricted by the rules and regulations or require ARC (Architectural Review Committee) approval.

Match HOA Rules to Your Lifestyle

HOA living isn’t one-size-fits-all. Some homeowners appreciate a strict set of regulations that help preserve community standards and property values. Others want more freedom to personalize their space, whether it’s changing landscaping, building a deck, or running a short term rental.

Before you commit, ask yourself:

• Can you comfortably follow the rules and regulations?
• Do the HOA rules enhance your lifestyle—or restrict it?

Choosing the right homeowners association HOA means finding a balance between structure and flexibility that fits your long-term goals.

3. Connect with the Community

A Homeowners Association (HOA) isn’t just about the rules and regulations; it’s also about the community members who live there. Talking to current homeowners can offer real-world insight into how the association functions and whether it supports a positive living experience.

Talk to Neighbors

Reaching out to current owners or other homeowners in the neighborhood is a great way to get honest feedback. Ask how strictly the HOA board members enforce rules, how disputes are typically resolved, and whether the association feels supportive or controlling.

These conversations can also reveal red flags, like recurring maintenance issues, surprise special assessments, or a lack of transparency in financial decisions.

Even a casual chat with a neighbor walking their dog or checking their mail can give you a clearer sense of what HOA living is really like in that specific community.

4. Understand Key HOA Terms

Before buying into a homeowners association, it’s essential to understand the most common terms related to HOA living. These definitions will help you navigate rules and regulations, financial obligations, and how the association is managed—so you can make confident, informed financial decisions.

HOA Rules and Enforcement

Different HOA communities have varying levels of rule enforcement. Some board members closely monitor compliance with community rules, while others allow more flexibility.

Violating HOA rules can lead to fines, restricted access to community amenities, or even legal action. In some cases, unresolved disputes may result in special assessments or liens on your property.

Observing how the community is maintained—whether there are common areas with non-standard features—can reveal how strictly the HOA works to enforce rules.

HOA Meetings

Most associations hold regular meetings where HOA board members discuss issues like maintenance, budgets, and future projects. These meetings help determine monthly fees, approve new regulations, and plan for structural repairs.

Reviewing meeting minutes or attending in person offers a behind-the-scenes look at how the board communicates with property owners and whether financial statements or changes to fees are being discussed.

Architectural Review Committee (ARC)

The ARC plays a big role in maintaining community standards. This committee reviews requests for exterior painting, additions, fencing, and other property modifications.

Before making changes, homeowners must often submit plans and wait for ARC approval. Understanding this process is essential if you’re planning landscaping upgrades or larger structural repairs.

HOA Disputes and Conflict Resolution

Conflicts between homeowners and the HOA board are not uncommon. Some associations follow a formal complaint procedure, while others rely on informal mediation by board members.

Reviewing the CC&Rs, governing documents, or past meeting minutes can give you an idea of how frequently disputes arise and whether the association resolves them fairly and efficiently.

5. Attend a Homeowners Association Meeting (or Review Meeting Minutes)

Before closing on a home in a Homeowners Association, buyers typically have 30 to 60 days in escrow. This provides an opportunity to:

• Attend an HOA meeting to see how the board operates and what issues are being discussed.
• Review recent meeting minutes if attending in person isn’t possible.

These meetings offer real insight into the community, including:

• How transparent the HOA board is in handling decisions.
• Whether they focus on improving the community or just enforcing rules.
• Any ongoing disputes between homeowners and the HOA.
• Planned large expenses that could impact future fees.

Taking this step helps buyers determine if the HOA is well-managed or if there are red flags to be aware of before committing to the home.

Choosing the Right HOA for You

Not all homeowners associations operate the same way. Some HOA communities offer valuable community amenities, transparent leadership, and strong reserve funds while others may burden homeowners with overly strict rules and regulations, rising monthly fees, or surprise special assessments.

That’s why due diligence is critical. Review the governing documents, talk to current homeowners, attend meetings, and drive through the community to see if it aligns with your lifestyle and long-term plans.

Whether you’re concerned about HOA fees, insurance coverage, or how the board makes decisions, it’s important to choose an association that supports your version of homeownership.

If you’re feeling unsure about buying into HOA living, our team at Absolute Real Estate is here to help. We’ve guided countless buyers through planned communities, gated neighborhoods, and unique HOA works scenarios, always with your goals in mind.

Reach out to us today! We’d love to help you find the right home in the right community.