According to Mark Roemer Oakland, despite a cash crunch and the pandemic desecrating several industries, the real estate industry hasn’t been affected. Moreover, nowadays, more homeowners choose to live in communities managed by homeowners’ associations (HOAs). Let’s check out why HOAs are so popular.
- Stability – Homeowners and new home buyers prefer the stability that comes with buying a home in an HOA community. While there are restrictions on major outdoor modifications on your own property, they are established by the HOA to preserve the value of all properties in the community. Residents can be at peace knowing that their property is in safe hands. HOAs also have a reserve fund. The fund is a pool of contributions from residents accumulated over several years and is used for repairs, maintenance, replacement, and upgrades for community features.
In more private gated communities, HOAs maintain roads, sidewalks, and even landscaping. They often do a better job than public municipalities since HOA members are residents of the community. The restrictions set by the HOA about property modifications also directly affect the curb appeal of all properties in the community. You won’t have to worry about your property value dropping due to a jerk across the street building an ugly chain link mesh fence.
- Collective effort – As mentioned above, HOA members are residents of the community. They are elected by the community to make decisions on behalf of the community. The members form the HOA board and take positions on a voluntary basis. The board oversees every operation with their members doing several tasks including enforcing rules, choosing vendors for different services, resolving disputes among homeowners, and more.
They also attend annual membership meetings and board meetings to make more impactful decisions. While some view being on the HOA board as a privilege, the role takes a lot of time, patience, and effort. Moreover, it’s a thankless service that gets no monetary compensation. While the presence of a governing body like the OA may turn off a lot of people, for most, it’s a perk that ensures the smooth functioning of the community. The risk of poor management is also lower since the decisions taken by the HOA board also affect their own homes.
- Low-cost-entry and all-inclusive packages – HOAs are also highly popular since they allow low-cost entry to first-time home buyers. For half a century, condos and townhomes managed by HOAs have been an affordable housing option for many people. Apart from the affordable price tag, these communities have prime locations. Moreover, the extra fee charged by HOAs is often seen as an advantage by many homeowners. Some HOAs packages even include utility bills, private landscaping for their properties, and more such perks that simplify the life of homeowners.
Mark Roemer Oakland believes that HOA popularity is set to rise in the coming years as well. More affluent homeowners like the privatized services and amenities offered by HOAs. However, the greatest factor that affects HOA’s popularity is its ability to preserve and stabilize property values.