A Few Things You Need To Know About HOA's in Lake Martin Communities
When you
purchase a condominium, townhouse or another type of property in a planned
development on Lake Martin, such as a leased land property or a gated community, you are
obligated to join that community’s homeowner’s association (HOA) and pay
monthly or annual HOA fees for the upkeep of common areas and the building. If
you are considering purchasing one of these types of properties, you should be
aware of the following nine things about homeowner’s associations and how they
work before you buy a home or condo in a Lake Martin community.
HOA BASICS
First, let’s take a look at what
HOAs are all about. HOA fees often range from 200-400 per month. The more
upscale the building and the more amenities it has, the higher the homeowner’s
association fees are likely to be. In addition to monthly fees, if a major expense
such as a new roof or a new elevator comes up and there aren’t enough funds in
the HOA’s reserves to pay for it, the association may charge an extra
assessment that can run into thousands of dollars.
Because
multiple parties live in the same building or complex, all residents of
condominiums and townhomes must be equally responsible for maintaining the
common areas such as landscaping, elevators, swimming pools, clubhouses,
parking garages, fitness rooms, sidewalks, security gates, roofing and building
exteriors. Many of these types of common areas, such as pools and tennis
courts, also exist in subdivisions of single family homes. Regardless of
whether the HOA governs a building, such as a condo or townhome structure, or a
neighborhood of individual houses, HOA fees help maintain the quality of life
for the Lake Martin community’s residents and protect property values for all owners.
In addition
to maintaining common areas, HOAs also set out certain rules that all residents
must follow called covenants, conditions and restrictions (CC&Rs). In a
common building, rules may include what color front door you may have, whether
you can line dry your laundry outside, whether you can have a satellite dish,
the size and type of pets permitted, and so on. In many ways, these rules are
like the kinds of rules apartment dwellers must follow.
In a Lake Martin subdivision with individual homes, like Stillwater's, regulations may include what color you can
paint your home, the exterior landscaping you can do, the types of vehicles you
can park on the street or in your driveway (no RVs, for example), permissible
type and height of fences, and restrictions on window coverings for windows
facing the street. If you want to do anything that differs from these rules,
you will have to convince the HOA to grant you a variance, which is probably
unlikely.
No matter
where you live, you are likely to be subject to city ordinances and
restrictions related to the use of your property. HOAs add yet another layer of
restrictions, and because their members are more likely to know what you’re up
to, the HOA is more likely to enforce the rules. Below, we’ll take a look at
some of the rules and regulations you need to know about before you decide to
join one of these communities.
WHAT YOU
NEED TO KNOW
While there are laws governing
the behavior of HOAs, these associations can still have a powerful impact on
your right as a homeowner. Before buying a property in a community that has an
HOA you should:
1.
LEARN THE HOA’S RULES.
a.
You may be able to find an HOA’s CC&Rs
online as well as information about what happens if you violate a rule. Make
sure any online information is current. If you cannot find this information
online, ask your real estate agent to acquire these documents for you or
contact the HOA yourself.
b.
Pay particular attention to rules regarding
fines and whether the HOA can foreclose on your property for nonpayment of HOA dues
or fines resulting from CC&R violations. Also, learn about the process for
changing or adding rules, and whether HOA meetings are held at a time you will
be able to attend if you wish to do so. If the rules are too restrictive,
consider buying elsewhere.
2.
MAKE SURE THE HOME YOU WANT TO BUY IS NOT
ALREADY OUT OF COMPLIANCE WITH HOA RULES
a.
Buying into an existing problem can be a
headache, so find out what the rules are and whether you would have to make
changes to the home to comply.
3.
ASSESS ENVIRONMENTAL PRACTICES.
a.
If environmentally friendly living is important
to you, be aware that some HOAs may dictate that you use fertilizers,
pesticides, sprinkler systems and whatever else it takes to keep you lawn
picture-perfect. They may not allow xeriscaping (an environmentally friendly
form of landscaping) and may limit the size of gardens, ban compost piles and
prevent you from installing solar panels. So make sure you check the fine print
first.
4.
CONSIDER YOUR TEMPERAMENT.
a.
Are you the type of person who hates being told
what to do? If so, living in a community with an HOA may be a very frustrating
experience for you. One of the major benefits of homeownership is the ability
to customize and alter the property to suit your needs, but HOA rules can
really interfere with this.
5.
FIND OUT ABOUT FEES.
a.
Fees will differ for each community. Because of
this, you should make sure to ask your HOA the following questions:
i.
How are HOA fee increases set?
ii.
How often do increases occur, and by how much
have they historically been raised?
iii.
Can you get a printed history of HOA dues by
year for the last 10 years?
iv.
How large is the HOA’s reserve fund?
v.
Also, ask for a record of special assessments
that have been made in the past and ask if any special assessments are planned
for the near future. Note that economies of scale can mean that special
assessments are smaller in HOAs covering large communities, higher in smaller
HOAs.
vi.
Find out what the monthly dues cover. Will you
still have to pay extra for garbage pickup? Is cable included?
b.
Compare dues for the complex or neighborhood you
are considering to the average dues in the area. Keep in mind that you will
have to pay for recreational facilities whether you use them or not. Find out
the hours for amenities like pools and tennis courts. Will you be around during
those hours, or will you be paying for facilities you’ll never be able to use?
Be aware that the HOA may have rules about how many guests can use common
facilities. If guest restrictions are severe, forget about that housewarming
pool party you envisioned.
6.
TRY TO GET A COPY OF MINUTES FROM THE LAST
MEETING OR SIT IN ON AN HOA MEETING BEFORE YOU BUY.
a.
The meeting minutes can be very telling about
the policies of the HOA. Some questions to ask are:
i.
What are current and past conflicts?
ii.
What is the process for resolving any conflicts?
iii.
Has the HOA sued anyone? How was that resolved?
b.
Be alert for potential drama. Power trips and
petty politics can be an issue in some HOAs. Talk to some of the building’s
current owners, if possible – preferably ones who are not on the HOA board and
who have lived in the building for several years. Talk to the HOA president and
get a sense for whether you want this person making decisions about what you
can do with your property. If a private company manages the HOA, investigate it
before you buy. Some HOAs are professionally managed, but it is common for
associations to be managed by building residents who hold their positions as
volunteers. Even if you like the current HOA board or management company, it
can change after you move in and you may end up getting something totally
different than what you expected.
7. UNDER-MANAGEMENT.
a.
Not all HOAs are over-managed. The opposite
problem may be an HOA where no one really cares and where no one is interested
in maintaining the building, making repairs, hearing resident grievances or
being on the board. Residents may simply take turns serving as HOA president or
randomly appoint someone, so be prepared to service in this role whether you
want to or not if that is the case with your community’s HOA.
b.
This would also be a good time to check into any
restrictions preventing you from renting out your property or that make it
difficult for you to do so. If your property is being under-managed you might
not have an issue, but if you’ve got a hyperactive manager it could be a
totally different story.
8.
FIND OUT WHAT KIND OF CATASTROPHE INSURANCE THE
HOA HAS ON THE BUILDING.
a.
This is particularly important if you’re
considering a condo or townhouse purchase and you live in an area that is prone
to floods, earthquakes, blizzards, fires, tornadoes, hurricanes or any other
type of potential natural disaster – and that is virtually anywhere.
9.
CONSIDER THE IMPACT OF HOA FEES ON YOUR
SHORT-AND LONG-TERM FINANCES.
a.
A condo with high HOA fees might end up costing
you as much as the house you don’t think you can afford.
THE BOTTOM
LINE
Homeowner’s
associations can be your best friend when they prevent your neighbor from
painting their house neon pink, but your worst enemy when they expect you to
perform expensive maintenance on your home that you don’t think is necessary or
impose rules that you find too restrictive. Before you purchase a property on Lake Martin that is subject to HOA rules and fees, make sure you understand what you are getting into.
What would the Neighbors think?!?!
Tip Tuesday!!!! Let’s talk about the neighbors, shall we? Living in a condo means you’re close to your neighbors, what does that mean? Check out this weeks Tip Tuesday!
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