Reply To: HOAs, do you avoid them?

[Krista Reuther]

HOAs are like extended car warranty salesmen – it’s getting harder to escape them. Approximately 30% of the US population live in HOA communities, and monthly dues are $200-$300 on average.

When you’re looking to purchase property within an HOA, I highly recommend:

• Requesting the HOA’s charge schedule. This document should outline historical HOA due increases over a given period of time. If given the option, I’d look at the last three to five years to see how often HOA dues have increased.
• Fully understanding what amenities the HOA provides. Paying a monthly fee may be worth it if they cover things like snow removal, depending on where your properties are located.
• Asking what their most frequently broken rules are. This can give you a sense of the HOA’s rigidity.
• Requesting to speak to other investors whose rentals are a part of this specific HOA. They can offer you greater insights into the hassle (or benefits) this particular organization offers.

Best of luck out there!