Buying a home is a major endeavor—days, weeks, or months of searching, budgeting, and stress might lead to homebuyers looking to quickly seal the deal once they find their match. Before signing that dotted line, however, it is a good idea to take a breath and carefully read all of the fine print before making a six-figure (or more) commitment.
This is especially true for people purchasing a property under the governance of a homeowner association (HOA) or property owner association (POA). Every one of these organizations has a set of unique rules and standards that every homeowner in the community must follow and meet. Laid out in documents called covenants and rules and regulations, these rules often restrict homeowners from making structural changes, outline unique responsibilities, and dictate what can or cannot be visible on a property.
In Northwest Indiana, more than 170 HOAs and POAs have hired 1st American Management Company to assist with their day-to-day operations—including enforcing their covenants, rules, and regulations. Before closing on a property, 1st American urges all homebuyers to request that their real estate agent bring copies of those documents for a careful read-through. They also highlighted some common restrictions and responsibilities that might be potential deal breakers.
Maintenance in Single Family Homes vs. Townhouses vs. Condominiums
These three types of properties vary not only in visual style and available space but also in the scope of responsibility by their governing HOA or POA. For single-family homes, an association’s list of responsibilities is much smaller: it handles maintenance in designated common areas such as parks, pools, and green spaces. In townhouses, the association’s scope increases to include the exterior of the building, such as the roof. It might also handle snow removal up to the doorsteps.
In condominiums, the scope increases even further to include interior spaces such as hallways, entryways, and stairwells.
Reading the governing documents before closing can help you understand your potential maintenance costs and responsibilities.
Structural changes
Every association has distinct rules on what kind of changes a homeowner can make to the home itself or in its yard. The association might prohibit you from adding a deck, building a shed, installing solar panels, or changing your mailbox.
Another frequent point of contention is fencing, where the HOA might require a specific material to be used (such as wrought iron instead of wood) or outright prohibit adding a fence at all.
Exterior appearance
Most associations tightly regulate the appearance of their community’s homes. This includes restrictions on what color paint or siding you can use, how tall you can allow your grass to grow, where you can place your trash cans, what kind of signs you can place in your yard, and even the size and scope of holiday decorations you can put up. All of these are listed in the association’s covenants or rules and regulations.
Pets, vehicles, and parking
Some associations may restrict the type or number of pets you can own. The most common restrictions are on certain breeds, such as Pit Bulls or Rottweilers. Others might only allow for one or two pets per household, or limit the weight and size of any potential pets.
Vehicles are under similar restrictions with trailers, RVs, boats, and commercial vehicles commonly prohibited from parking in public view. Some HOAs might not allow residents to park their vehicles in driveways at all, or only for a specified duration.
Before you buy
All of these restrictions and more are listed in an HOA or POA’s governing documents. Before finalizing any offer and closing on a property, make certain you and your family give them a careful read-through. Doing so is key to ensuring you find a community that is the right fit for your needs.
When deciding to live within an HOA or POA, inquire if your Association is self-managed or utilizes a professional management firm such as 1st American Management Co., Inc. Aside from a dedicated team of Property Managers, 1st American Management has a trained accounting team to handle the day to day finances of the Association as well as a full time maintenance staff to assist with daily tasks which helps the Board of Directors maintain the standards set by the governing documents. To learn more about 1st American Management, and how they can benefit your neighborhood, visit 1stpropertymanagers.com.
