Homeowner associations (HOA) can help increase property value and improve the amenities and safety of a community. Despite some drawbacks, these benefits can prove very attractive to some kinds of home buyers, who may even be willing to pay more for properties that are managed by an HOA.
Many neighborhoods have design requirements for home exteriors, in order to maintain a consistent or historical look throughout the community. The HOA approves any construction and renovation projects, to ensure that everyone follows the rules and meets the community standards. It also works with the local government to ensure adherence to municipal codes.
The HOA is also in charge of maintaining the beauty of communal areas, from the landscaping of roadsides and parks to renovations and maintenance of community buildings.
The result is a community that looks beautiful, well-maintained, and harmonious.
The HOA is in charge of organizing events and activities that will benefit the residents. This can include festivals or parties, free classes or workshops, or weekend markets or bazaars. Neighbors can get to know each other and enjoy extra services without having to travel far from their home.
The HOA can use association fees or hold special fundraisers in order to improve community facilities and amenities. For example, it can convert a community lot into a sports facility or dog park or improve playgrounds and walking trails.
Improved community safety
The HOA can also lobby for safety or security measures, such as better street lighting or security cameras. If the area has an increased incidence of crime, it can organize neighborhood patrols or hold safety seminars for the residents.
An active HOA also fosters stronger relationships between neighbors, which on its own can already increase everyone’s peace of mind. If people know each other, they are more likely to look out for one another, and notice any unusual activity or suspicious persons.
Intervention for conflict and disputes
An HOA sets clear rules and regulations to prevent many common disputes, such as parking rights or short-term rental guidelines.
In the event that there is a complaint or a dispute, the HOA can also step in: by creating a committee and setting proper procedures and sanctions. This can help diffuse or resolve a conflict before resorting to more expensive and time-consuming legal means.
Stronger community pride
The HOA’s activities help build the “community identity” – from the unified look of houses to the group activities and stronger relationships with neighbors. Over time, this can develop into a sense of pride and even prestige. Residents are grateful to be part of such a close-knit, well-maintained neighborhood.
Increased property value
If the community identity is sustained over a long period of time, it becomes part of the neighborhood’s reputation. Naturally, it will attract the interest of property buyers, who are looking for not just a nice house in Margate or another shore town, but a “happy, safe place to live in.”
The HOA rules for adherence to building codes and exterior designs, and its regular maintenance and improvement of communal areas, can also add to the neighborhood’s overall property value. One study found that these ret
HOA: A rising trend
According to Investopedia, about 25% of Americans live in neighborhoods that have homeowner or community associations. While communities that have HOAs generally are more expensive – in addition to monthly HOA fees – a study shows that the perception of safety, exclusivity and homogeneity can all increase property value.