What is a homeowners association? Top tips for managing an HOA

If you're in the market to buy a home or condo, you'll likely come across an HOA (or more).

The Home Owners Association (HOA) can make or break whether you get your dream home, so it's important to know what they are and how they work.

And if you're an HOA owner or president, you need tools to help you organize and run your HOA smoothly. With a variety of community association management software on the market, you can find a solution that works best for your HOA.

What is an HOA?

An HOA, or homeowners association, is an organization made up of the owners of a condominium, development, or community who pay monthly fees to maintain common areas, buildings, or amenities.

HOAs also hold regular or occasional meetings to plan how this pooled money is spent, determine if upgrades are needed, or organize community events such as block parties or holiday gatherings.

How a homeowners association works

Prospective homeowners often need to be approved by the HOA before they can buy a home in the community, and criteria vary from association to association. Some HOAs may also require homes or yards to maintain a specific aesthetic or level of maintenance.

Some may limit the size, number and breed of pets in the community. Penalties for non-compliance with CC&Rs (covenants, conditions, and restrictions) vary, but typically involve fines. Some HOAs may even be able to sue you or foreclose on your home if you haven't paid your HOA dues or fines within a certain amount of time.

Who runs an HOA?

Many HOAs are led by a president, who is often elected from among the HOA members for a specific term. The HOA President will schedule and lead meetings, interface with maintenance or construction workers, and may even act as a tiebreaker for some votes. Some HOAs are run by a property management company, which reduces the risk of personal hard feelings if the election doesn't go a certain way.

What are HOA fees?

HOA fees vary depending on the value of the properties and the amenities available, but they often amount to a few hundred dollars per month. Some associations may have a reserve fund for general maintenance and a pool for larger or emergency expenses. If an HOA decides they would like to add an amenity such as a community pool, those funds can be taken from the pool of money set aside for such projects, or the HOA can vote on how those funds are acquired. (perhaps additional costs each month specifically to go toward building the pool) or allocated.

Condominium fees especially tend to go toward maintaining common areas such as a gym, pool, or party room. These fees can also be used for general maintenance of the hallways, elevators, stairs and lobby. For subdivisions with homes on separate lots, these fees may be used for landscaping green spaces outside individual properties, maintaining a community pool or activity room, or street and sidewalk maintenance, such as winter snow removal.

Tips for Managing an HOA

If you are a tenant and are learning more about what a homeowners association is, you may be wondering what you need to know to settle into your new community. Here are some tips to make sure your HOA journey goes as smoothly as possible.

Make sure you know the rules. Before you fall in love with a place, make sure you're willing to accept the rules set by the HOA. These rules can include what paint colors you can use, how you can do your landscaping, how loud the music can be, etc. Be comfortable with these rules and know them well. Offer to participate in community events. From time to time, HOAs will open up the opportunity to join their volunteer group. If you want to get more involved in your community, be sure to sign up! Being a voice in the community allows you to more formally represent owners. Keep communication flowing. The biggest mistake you can make is dropping the ball when it comes to solid communication with your HOA. This includes discussing any important changes you want to make, keeping up to date with new rules or regulations, and more. In addition, prioritizing communication within the community is equally important. When you and your neighbors are all on the same page, discussing issues or action items with the HOA is much less daunting. Pay on time, every time. Ultimately, when it comes to living somewhere with an HOA, it really is a business relationship. Make sure you stick to the points agreed upon in your contract and pay your HOA dues in a timely manner. Know what your HOA can and can...