If you’re looking for a new home or perusing real estate listings, you may come across the words, homeowners association, or HOA for short. You’ve seen this description dozens of times and may have a loose concept of the meaning.

But, what is a homeowner association? What does HOA mean? What do you need to know about this type of real estate?

And, are there benefits for homeowners? HOA real estate typically involves community living and community fees. While this can come at a premium, many homeowners greatly enjoy these HOA benefits. 

In fact, more than 73.9 million Americans call HOA communities home. So, what do these homeowners know that you should too? Read on to discover everything you need to know about HOA real estate and the potential homeowner benefits. 

What Is a Homeowner Association (HOA)? 

A homeowner association is a type of real estate in which an organization, management company, or subdivision manages the property and creates rules for residents to follow. Buyers who purchase property from an HOA automatically become part of the Homeowner Owner’s Association.

Depending on the type of real estate, this association guarantees buyers special perks like maintenance, upkeep of shared grounds and spaces, and other building or community amenities. 

In return for these benefits, homeowners pay a fee to the association. This fee is often called “dues” and could be a monthly payment or yearly payment depending on the community rules. 

HOAs exist in urban centers like apartment buildings. But suburban communities with homes or townhouses also offer this type of real estate. 

Regulations and Rules 

One of the HOA’s main goals is to create and enforce rules for the community. The HOA is typically run by a management team, board of directors, and on-property maintenance staff.

There are some rules. For example, some HOAs may have strict regulations regarding the outside appearance of homes.

Or, other HOAs may offer special amenities like a community pool or spa for the exclusive residents’ use. These perks could increase monthly dues so buyers should budget accordingly. 

What Are the Benefits of Joining an HOA? 

Do you want to join an HOA? While HOA fees are an extra expense, many homeowners find the maintenance and worry-free aspect worth the value.

Community living has its perks. Whether you are a single homeowner or have a family, there is a home owner’s association of every type to fit your interests.

For example, many HOA boards offer volunteer homeowners opportunities. This allows residents to work together, organize events, and socialize. 

An HOA Could Be the Right Fit for Some Homeowners 

Never again have to question what is a homeowner association? This guide can be your ultimate resource for understanding the basic principles of a homeowner association. Remember that an HOA involves a board or management company that creates community rules.

As an HOA buyer, your fees or dues afford you benefits like maintenance, upkeep, or other amenities. HOA real estate can be a great place to socialize and enjoy community living. But, the financial and social benefits may not be for everyone.

When considering HOA living, it is important to check your expectations and know these facts. If you found this information helpful, then check out our other real estate articles.