A Guide To Understanding The
Homeowners Association Community
By Omar Johnson
The author has permitted the reprinting and redistribution of this
article.
Investment property comes in all shapes and sizes, but what happens
when it comes within an HOA community HOA communities are neighborhoods
regulated by a Home Owners Association. The organization is run by
members of the community who enforce the neighborhoods rules.
The nice thing about HOAs is they serve as a watchdog for the community
and thus your property. They make sure lawns are mowed and trash cans
aren't left on the curb. But with the pros come the cons, such as laws
that may be more restrictive than you as an investor care to worry
about. Here is a quick breakdown of some reasons why HOAs are nice to
be involved with.
Pros
1) HOAs provide an additional way to monitor your investment property.
2) Neighbors to your investment property are also monitored. You won't
have to worry about cars on blocks and trash piles popping up around
the neighborhood thus driving down the equity of your investment.
3) The majority of HOAs have regulations regarding home elevations and
changing them. This makes it harder for other homeowners in the
community to change the exterior of their house to a distasteful color.
4) Some HOA communities come with amenities such as pools, ponds,
walking paths, parks, club houses, fitness centers, and other
attractions.
5) HOAs can foster a sense of community which you can use to your
advantage when finding that perfect tenant to fill your investment
property.
Of course, HOAs are like a double-edged sword. They come with rules for
both your tenant and the neighbors to follow. When you have an
investment property in an HOA community, you have to worry about your
tenant complying with these rules.
Cons
1) Large recreational items, like portable basketball hoops, can't be
left out at night.
2) Trash cans are required to be put up in a timely manner after trash
pickup for the week.
3) Landscaping and lawn care needs maintained per HOA guidelines.
4) HOAs have been known for developing rules that make the city's laws
look meek in comparison.
5) Some HOA restrict the amount and type of animals community members
can own. This could limit your potential renter list.
6) HOAs can regulate the amount of investment property within a
community and even make it near impossible for you to lease a home.
Because HOA rules differ based on the community, it is hard to
determine if investing within a regulated neighborhood is right for
you. If you are thinking about investing in a piece of real estate,
find out if it is part of an HOA. If it is, inquire about the HOAs
rules. Are they investor friendly What are the rules How often are they
enforced What happens if your tenant breaks the rules
Omar Johnson is a real estate investor and author of the home study
course The Real Estate Investors Guide To Finding Motivated Sellers For
more info visit httpwww.findingthemotivatedsellers.com
If
you would like to take advantage of the market and learn how to invest
in real estate and you are local to the Dallas Fort Worth area, I know
a really great teacher and mentor here in Arlington Texas. Please take
a look at his web site: DennisJHenson.com,
Dennis has a great Mentoring and training program, I know because I am
one of his former students. I learned a lot from his one on one
teaching technique. - Michael Harman 817-457-7572
mchfun.business@gmail.com
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