Pros and Cons of an HOA

There is a lot a debate about the pros and cons of an HOA and a lot of it just comes down to a personal choice. Here are some "Pros and Cons" -- however, as with everything, a "pro" for you could be a "con" for someone else!

Below are five ways that an HOA is seen as a positive:

1) The HOA is beneficial to the community and maintains and pays for the upkeep of common areas, including ponds, swimming pools, tennis courts, play grounds, golf courses and club houses. It could be said that without an HOA you may not be able to have these amenities in your neighborhood.

2) Some HOAs provide services such as driveway snow removal or lawn maintenance for each residence. Perfect for busy families or retirees -- and it ensures a uniform and well-kept look throughout the neighborhood.

3) An HOA will have a mechanism to mediates disputes and quickly resolve grievances between residents.

4) An HOA will help property values to stay high by regulating the things that help keep a neighborhood looking good, (keeping garage doors closed, no cars left in driveways over night or on the street, no signs in yards, holiday decorations only left up for a month, etc.)

5) An HOA may plan annual parties, family nights, pool parties, neighborhood clean-up days, etc.

Below are five ways that an HOA may be seen as a negative:

1) Some people don't like being restricted by neighborhood rules, such as how high your grass can get before it is mowed or how many pets you can have.

2) HOAs will often have regulations about renting out the property, and may need to approve the renters.

3) Neighborhood Association dues that help maintain the common area and which go to the special events add an additional expense to home ownership.

4) If you do not pay your dues on time, an HOA can put a lien on your home or force a foreclosure on your property.

5) Some HOAs are poorly managed and a lot of times the board has a lot of turn-over. This is in part because board members tend to be volunteers with a paying day jobs and busy families. (This is why many HOAs turn to a professional HOA management company to help set and guide the rules).

In the end, your decision to move into an HOA community is one that you need to carefully consider - and each HOA is different! Be sure to read the covenants of any HOA you are considering and if you do choose an HOA community, you will always be happier with the results if you stay involved. HOAs are about and for the residents!

Kuester Property Management

HOA Management Company

Charlotte, North Carolina

Holiday Decorations and Home Owner's Associations

'Tis the season right? The season for braving the cold weather and putting up those holiday decorations!

It is great to see families take pride in their holiday lights, and neighbors in friendly competition to out-do each other. But it is important this time of year to follow a couple tips when decorating, for safety, and also for the sake of the community.

First, before you get those strands of light ready, review your HOA policies. Some neighborhoods have rules on how early you can decorate, as well as how long the lights can stay up. Generally, these rules are reasonable and are meant to discourage people from putting up lights on Labor day and leaving them up through Valentine's day. However, it is good to know what the date ranges are, so that you don't incur a notice or a fine.

Some neighborhoods also try to coordinate "like" decorating - for aesthetic reasons, or to compete with other neighborhoods in the area. So before you put up your multi-color twinkly lights and hugh blow-up snow-globe, make sure your neighbors haven't decided that this is the "cool-blue" year.

Lastly, remember safety! There are plenty of new products on the market that make putting up lights safer than in the old days of climbing on the roof with a bunch of nails! Take advantage of the special clips and the extension pole when possible, and always put up lights with a partner. It will do no good to be in a leg cast over the holidays, but if something does happen, you will want someone to be able to help. Also, use special out-door lights, and don't over-load your electrical outlets. House fires are all too common during the holidays, so be careful, be smart, and light up your house... like.... a Christmas tree!

Property Manager - Charlotte - Kuester Property Manager

Home Owner's Associations

I was sitting in a coffee shop the other day, and started talking to the guy sitting in the seat next to me. He was a nice guy, worked for a local auto repair shop as the manager and through the course of the conversation, we realized that we lived in the same neighborhood.

He announced he was planning on leaving the neighborhood as soon as he could sell his home - told me he was so frustrated with the neighborhood association that it made him want to move into an area without an HOA.

Now, I did not tell him what I did - that I work for a property management company that handles HOAs.... (although ironically, not the one in our neighborhood). But I did ask him a few questions, because I was curious. Personally, I have never felt the HOA was particularly heavy-handed or unfair, and professionally I know that all HOAs are made up of the residents of a neighborhood, and all rules, policies, meetings and events that an HOA oversees can be changed with a vote--a vote of the neighbors!

So I asked him if he had ever been to an HOA meeting... NO. I asked him if he ever volunteered for a committee...NO. I asked him what specifically he did not like, and he told me it was the policy on what you could and could not build on the property. Specifically, he wanted to put a 2-story out-building/second garage on his back yard.

And I smiled. I live in his neighborhood and I would not want someone to build a second garage in their yard! Our properties average a quarter acre at best, and the amount of space that would take up would be huge. It would, in fact be an eye-sore, may even bring the property values around that house down.

We might all love extra space for our tools and our cars. We might all love to have a "guest bedroom" built. But in this particular case, it was not appropriate for the neighborhood and the covenants for our HOA were actually protecting us from everyone building over-sized sheds, or extra buildings on a small property.

This gentlemen and I won't agree, and he also won't join the architectural review committee either and volunteer his time to make a change he is interested in, or take the initiative to find out why his dream of a second garage is something that just doesn't fit into the neighborhood standards.

I am sure that he would not like it if his next-door neighbor painted their home barbie-pink and decided to put a moat in either!

HOAs are a good thing. But they are not for everyone. If you are a free spirit who likes to have full control over your property, and doesn't feel that you should be concerned with the "bigger picture" of how that affects the neighbors around you, there are plenty of homes and properties available. If you want the security and camaraderie, amenities and continuity that a neighborhood offers, than an HOA may be for you.

And remember... if you can and if you care, get involved! HOAs do not run on their own.

Kuester Property Manager

Charlotte, NC

Why Join an HOA?

More and more home buyers in the Carolinas are choosing to live in HOA communities. Why? Well, first of all, more new homes are being built in neighborhoods -- and neighborhoods generally have a builder who sets up the HOA as the homes are being completed. It makes sense that houses and families in close proximity would need to have a set of rules to follow for the overall happiness and continuity.

..And that is generally the point. People who live in the close proximity of neighborhoods like to have a set of rules that they know that their neighbors are following. Not everyone would be keen on their neighbors building a shed in there front yard. Not everyone would appreciate the artistic flair of painting a home in giant polka-dots. HOAs set the ground rules and policies that the everyone has to follow.

HOAs provide the structure through the CC&Rs -- and when you are looking to buy a home, it is your responsibility to know what the Covenants, Conditions and Restrictions are --and if they are something that you wish to live within.

For so many the answer has been "yes" because this kind of "rule of law" helps us all be good neighbors, and give us recourse when someone is not.

Charlotte Property Manager.

Shopping for a New HOA Property Manager?

Are you shopping for a new HOA Property Management Company? Unfortunately, it is not uncommon for a Property Management Company not to meet the needs of the board and residents it serves. Sometimes the neighborhood is just too big, sometimes it is because the company over-promised--but we get a lot of new business from established neighborhoods that are just plain unhappy with the company with which they had contracted.

One of the best things that you can do if you are in the market for a new HOA Management Company is to create a complete list of "needs and wants." The Board of Directors for the HOA may do this, or a subcommittee may be created, but it is important to know what it is you are looking for and be able to articulate this to the prospective companies that present their proposals.

A lot of HOAs are cost-sensitive. And if this is the case, you should consider what you "need" the management company to do vs. what you would like them to do. It would be better to have better quality service from a reputable, experienced company which did not do everything... than a company which did everything poorly!

When interviewing the Property Management Companies, ask them how they would have handled the situations for which brought you to the decision to look for a new company! This will give you an idea of the creativity and ability of the companies AND give you an idea of how reasonable your expectations are. Your requests may be easily met--or there may be a challenge for which you had not considered. Finding the right HOA Management company is really about a partnership, and they are just as responsible for telling you what is not possible as you are for asking for what is.

Like with much else, communication is the key. Ask for what you want, listen to what can be done, and set the expectations so that everyone is on board and your next HOA Management company can be the permanent management company.

Green Ideas Your HOA Will Love

Your HOA may not like it if you put a compost pile in your front yard, or let your lawn go "au natural," but there are some things that you can do to be energy efficient and environmentally friendly that won't get you a fine from the HOA!


You can:

Buy Energy Star appliances - these are not the end-all and be-all of the environmental movement, but they are a good start.

Plant HOA approved trees and plants - Planting trees will help replace oxygen and remove CO2. The more you can plant, the better your gift back to the environment.

Use Low Volitile Organic Compound Paints (VOC) - VOC paints are non-toxic and will not pollute your indoor air.

Use LEED-Certified Building Materials - LEED Certifications come in different levels, but it all comes down to how environmentally responsible the materials are. If you are building a home, or addition, think about using a LEED certified builder and LEED certified materials.

Use Mult-Zone HVACs - Buy an HVAC system that is designed to distribute air to different parts of your home and pre-programmed times to keep the parts of the homes at different temperatures depending on usage. The initial cost will be more, but the savings can more than make up for it... and it is better for the environment!

Replace incandescent lights with compact fluorescent or LED bulbs - The bulbs are becoming the norm, but you can still buy the old kind... When given the choice, take the greener compact or LED route.

Make sure that recycling bins are put in common areas with the garbage - By simply giving neighbors the option to recycle, most will!

Start a Green Committee - Join forces with your neighbors to help educate each other on green-options, innovative ways to be environmentally conscious and provide assistance to the HOA in making better decisions.

Before You Join an HOA Community

A Homeowner Association (HOA) is a legal entity created to manage and maintain the common areas of a community. Generally these"common areas" consist of things like pools, clubhouses, landscaping, parks, streets and roads, but a HOA also governs the CC&Rs, the Declaration of Covenants, Conditions & Restrictions, or set of rules that are typically set up by the developer and updated/changed by the Board of Directors. The CC&Rs are what determines if it is ok for you to leave your garbage can out for more than a day or if you are allowed to leave a car up on blocks in your front yard, or if your neighbors will have recourse if you choose to paint your shutters purple when theirs (and the rest of the neighborhood's) are black.

The HOA will enforce these CC&Rs in the way that is approved by the Board of Directors, often with the assistance of a property management company. These polices are developed to protect the neighborhood, the value of the homes and the quality of life for the residents. However, these policies can be changed if the majority of the voting neighbors would like them to be. So before you buy a home in an HOA, here are some things to consider:


1) You should thoroughly read and examine the CC&Rs that govern the community and make sure you can live with and abide by them. If the regulations state that you cannot have goats on your property, and you are a goat owner... this may be a sticky point! But if you think that 24 hours is plenty of time to leave out your recycling bin and you feel that is a fine policy and want your neighbors to abide by the same....an HOA may be perfect for you.

2) You are perfectly reasonable to ask for a copy of the financial statements of the HOA and have a person such as a lawyer or accountant examine them to make sure there is nothing irregular. Checking to see if the HOA runs its business in a responsible manner will help you determine if the neighborhood will have enough cash on hand to make upgrades and repairs to roads or other common areas such as the pool.

3) Find out what the monthly dues are and make sure you can afford them. Dues can be reasonable... or not depending on where you live, what the HOA does and your tolerance for the price-tag. But not paying them could put you in some serious hot water and potentially get you sued.

4) Find out if the HOA has a strategy for replacing of major items such as heating, cooling, roads, buildings and roofs and how the reserve requirements are funded. (i.e. has money been saved, or would the neighbors each be required to pay an additional amount should the basketball court need to be re-surfaced.)

5) Find out if there is any litigation pending against the HOA. This could be a red flag in a couple of different ways, and certainly something you should know before you sign your contract.

6) Ask about when the last time dues were raised, and how often this happens. For obvious reasons you want to know how much you may be expected to fork over!

An HOA community may be a great fit for you and your family and more an more Carolinians are making this choice. But be educated before entering into any contract, especially one concerning where you live and what you can do with your property.

Property Manager
Kuester Property Management

Not happy with your HOA? Get involved.

I myself live in a community - just outside Charlotte - with an HOA. The other day our neighborhood held its annual "neighborhood garage sale." It was a beautiful sunny spring day - the perfect Carolina weather!

As I sat with my neighbor (a good friend) I heard her say, over and over again, what a shame it was that the neighborhood association did not advertise the garage sale properly. She complained to herself, to her husband, to me, to the one or two people who stopped to look at the old children's toys... But fact is, we had hardly any traffic at all and it made for a very long day!

After a while I had to say something. Homeowner's associations work when the neighborhood residents get involved. And since my friend had not been on the garage sale committee, and since she did not make any effort that I could tell to help organize the event, participate, help, or lend her opinion beforehand, I truly felt that she did not have a reasonable complaint.

Many of us in Charlotte live in HOA communities and many are run well. The property management company takes care of things like the park and the pool and common area. The architectural committee approves fences and patios. But too often too much falls on too few.

If you are not happy with how your HOA is run, or how they handle the annual Easter Egg Hunt, or the color of the new playground equipment--then it is ultimately your responsibility to get involved. The folks that have taken the time and effort to step up and make the decisions for the community are not compensated. They do what they can, and sometimes that means there is no one to place an ad in the newspaper or update the neighborhood website.

Every HOA has large jobs and small jobs and if you are able--please consider doing your part. If you can't, that is fine too... but it leaves little room for you to complain when things don't go the way you would like!

Property Manager
Kuester Property Management

HOA Rules and Regulations

Rules are meant to protect people and property, and HOA rules are the same way. While some people may be offended by the notion that they have to request permission to build a swing set, or put up a fence in their own back yard, there is always a good reason--or at least a good intention when an HOA set the rule.

If you do not want to live in a community that has restrictions on the size of shed you can put up, or how long your grass can get in between mowings, than perhaps living in an HOA community is not for you. But if you see the value in a neighborhood which abides by the same guidelines in order to protect the property values and the residents, then an HOA-neighborhood may be a great fit

If you are new to living in a homeowner's association regulated area and do not read the CCRs, it may be a bit of a shock to you the first time you are given a warning letter about a minor violation such as leaving your garbage can outside for several days after garbage day. But rest assured the committee member who noted the violation and the property management company that sent the letter to you are not "out to get you." No one likes to be the bearer of bad news--and if the issue is minor and a first-time problem, they will likely wave any fee if you take care of the issue quickly.

It is an adjustment if you have never had to follow the policies of an HOA, but in the end they rules are meant for you. After all, if there weren't a rule about keeping a rusted-out car in one's front yard, there would be little recourse for you if your next-door neighbor were to choose a '79 Buick as a lawn decoration!

Also, you should remember, if you feel that a policy of the HOA, or neighborhood covenant is unfair or ill conceived, you have the ability to have it put up for a vote if you are an active committee member. The HOA is there for you -- so participate and enjoy the benefits of having a community interested in protecting you, your family, and your home.