A guide to understanding HOAs

Homeowners associations (HOAs) are non-profit organizations or corporations that consist of all the homeowners in a particular neighborhood or area. Often led by a board of neighborhood volunteers, HOAs typically manage services necessary to maintain common areas, as well as utilities like regular trash pickup and snow removal. They also enforce a set of community rules and covenants that help maintain a clean and harmonious environment within the neighborhood. If you’re purchasing a property –be it a condo, townhouse, or a single-family home – in a gated neighborhood or residential development in College Station, you will most likely be part of a HOA. While this gives you certain benefits and access to exclusive amenities, it also comes with obligations like fees and housing regulations. When considering a home or property that is a part of an HOA, keep the following things in mind.

Know what you’re paying for

Buying a home that’s part of an HOA comes with additional monthly or annual fees that can fall anywhere between $100 to $1000 per month, depending on factors such as:

1. 1. Services and amenities available

What kind of services are covered by the monthly HOA fee? Depending on the neighborhood or condo, these may include access to recreational amenities, 24/7 security and gate maintenance, clubhouse and golf course privileges, lawn maintenance, and upkeep of the entire community (including facilities). If the amenities and services offered don’t fit your lifestyle, it may be better to move on with your search.

1. 1. The type of home or property you want to buy

HOA rates and fees can also vary depending on the kind of property you’re planning to buy. Aspects like location, square footage, and orientation are considered in the fees your HOA charges you with, which often boils down to the amount of upkeep the property will require.

1. 1. The HOA’s history

HOA fees can increase or decrease over time, so it’s important to take note of the HOA’s history and how often its fees change. You can ask your real estate agent to go over a printed history of HOA dues with you. Ideally, increases should not happen more than once a year. They should also be mapped out three to five years in advance, calculating future costs of utilities, labor, maintenance, and other key services. If these estimates are unavailable, you can gauge HOA increases by going over their bylaws and checking whether they have a limit to the amount fees are allowed to increase each year.

Study an HOA’s rules and regulations

Every HOA has its own unique set of covenants, conditions, and restrictions (CC&Rs), and it’s extremely important to think whether you can live with these. CC&Rs are often available online at the HOA’s website, but in case they aren’t available, you can ask our HOA team at Berkshire Hathaway HomeServices Caliber Realty to acquire them for you. When studying a HOA’s CC&Rs, make sure to be mindful of the following:

• Construction and landscaping restrictions: These can range from general provisions on landscaping and environmentally friendly gardening practices to specific regulations on the types of vehicles allowed to be parked on the street and how high fences can be.
• Rental prohibitions: If you’re planning on renting out part of your property as long- or short-term rentals, check the CC&Rs for any bylaws that can prevent, complicate, or fine you for renting out your property. In College Station, take note that all rental properties are required to be registered with the city. Short-term rentals must also have a permit before operating, and they are required to collect and remit hotel occupancy taxes Your HOA might also have additional rules and charges regarding this, so be sure to check the CC&R or ask your real estate agent.
• The HOA’s legal power and conflict management: Almost all states have laws that define the role and responsibilities an HOA. For College Station, you’ll find this in Chapter 202 of the Texas Property Code, which discusses “restrictive covenants.” You can also learn more in Chapter 209 (The Texas Residential Property Owners Protection Act), which covers issues from board governance to required notices and foreclosures for assessment liens. Study the HOA’s CC&Rs, especially with regards to how they set and enforce their rules, the penalties, and their process in resolving conflicts.

Interested in knowing more about HOAs and other property management services in College Station? Work with Berkshire Hathaway HomeServices Caliber Realty, a full-service real estate firm that can provide you with the expert skills, knowledge, and resources you need for your residential property investment in College Station and Bryan. Call 979.694.8844 or send an email to sales(at)bhhscaliber(dotted)com today.

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