PROS and CONS of Homeowners Association


HOA or Homeowners Association is a term you’re likely to come across if you are buying for a real estate. Investopedia defined Homeowner’s Association as “an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction”.

Some properties are member of HOA while others are not. Have you ever wondered how many properties are part of the HOA? Based on the data of Community Associations Institute (CAI), there are around 26 million homes throughout the America that are administered by HOA.

Have you found your dream house but you still cannot decide if you are going to consider HOA? The Allstate Blog will help us to identify the good and bad side of HOA. Here are few pros and cons for you to ponder on.

What’s Good about HOA?


  • HOA provide amenities. Buying a property with HOA will give you rights to use amenities such as swimming pool, tennis court, gym center, or clubhouse. It is convenient for you as it is within the vicinity of your home.
  • They reduce your responsibilities. HOA gives you the privilege to elude some errands such as grass cutting, snow removal, and other relevant maintenance.
  • They help keep up appearances. The management of HOA have a set of rules or guidelines for the homeowners to prevent any negligence to the properties that can result to neighborhood decline. HOA maintains the goodness and values of the community.


What’s Bad about HOA?


  • HOA can foreclose on your home. Being delinquent with your fees on the association may foreclose your home. However, it is the last option for not paying fees on time.
  • They can spring assessments on you. HOA can ask for additional funds or money for some expenditure that fees cannot cover anymore.
  • They may limit your from renting your place. In a community governed by HOA, homeowners can be restricted by the management to rent their homes. The management or board must approve it first and might ask for some percentage to move forward.


Now that you have ideas about HOA, you can think it over and ask yourself if you want a property with HOA. Does HOA best fits your requirements or not? Think it over before you buy your dream house.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s