Are HOA’s More Trouble Than They’re Worth?
28 July 2016
Last Updated on 28 July 2016
Written by Hank Fennell
People sometimes ask us, “What’s the point of having an HOA? Can’t I just save money and move into a neighborhood without one?” Or, “Why should we hire a management company?” These are important issues to understand for current and future homeowners. I want to present a few ways in which having a well-managed association can provide value for your neighborhood.
- Well-managed HOA’s can increase and protect property values. HOA’s add tangible value to your home, and buyers recognize that. Comparable properties that are in HOA’s usually see a higher value than those that aren’t. They also help protect property values. Restrictive covenants help to ensure that your neighbor doesn’t paint his house pink! Without an HOA, people can do whatever they want, and that can be dangerous to the look and property values of your neighborhood.
- Well-managed HOA’s can keep money in your pockets. Being involved with the industry for 7 years, we have developed great relationships with vendors in the Knoxville area. One of our greatest assets to an HOA is our ability to negotiate contracts and find many areas where the Association can save money. Vendors we’ve built relationships with for years are able to offer competitive prices to our clients, and often times are able to beat the current contract by quite a bit. In addition, an HOA provides an economies of scale discount for virtually all services provided. Chances are that if your HOA provides a service like trash removal, you are going to get a better rate by contracting all residents with one service as opposed to each individual homeowner going out and finding service on their own. Well-managed HOA’s help to create a sense of community.
- Well-managed HOA’s help to cultivate a sense of community. Neighborhoods with an active HOA, and with a Board that cares about bettering the community they live and serve in, typically take positive strides to build and maintain relationships in the neighborhood. This happens with Board members creating community events and getting out to meet and regularly interact with their neighbors.