What is a Home Owner’s Association (HOA)?

An HOA, meaning Home Owners Association are private organizations whose mission is to maintain the quality of the community as well as the value of the homes within it. HOA establishes a set of rules and regulations for people who live in the community, they must follow it strictly. In a research, it has been proven that 58% of homeowners are HOA members in the future the number will increase.

A homeowners association is a self-governing organization where homeowners will pay the amount to maintain the property. It’s actually run by resident homeowners, and volunteers who are selected to a board of directors team that manages the HOA management.

The homeowner who belongs to the HOA community should pay the fees that cover the use and maintenance of common areas including n include swimming pools, parks, parking lots, and roads, as well as communal lawn maintenance and landscaping.

How much are HOA fees, and what do they cover?

Homeowners should pay anywhere from $200 to $2,500 or more per year in HOA costs and fees or assessments. The fees widely depend on the area and the amenities, you must know what’s your monthly share to make sure whether it fits into your budget.  

The homeowners must spend a minimum amount to operate the association which includes,

  • Landscaping and maintenance (including pest control)
  • Garbage pickup
  • Parking
  • Shared utilities (e.g., in common areas)
  • Safety and security

Sometimes they may charge fees for special assessments, this will be done when a natural disaster or other unusual problem occurs.

Pros & cons of HOA life


  • HOA brings neighbors together through shared interests and organized social events.
  • Your neighborhood will be well-maintained without any extra effort from your side.
  • You may get the benefit to access the swimming pool, playground, clubhouse, gym, etc.


  • HOA dues will add costs to your monthly obligations
  • The dues will badly affect your maximum loan amount.

By understanding the process of HOA will help you choose the right home in a neighborhood that suits your budget and lifestyle. Know the pros & cons of HOA and decide whether it’s right for you.