What is an HOA in Orlando?

14th October, 2015
  • If you're not sure what a homeowners association (or HOA) is by now, it's about time you found out. As a potential property investor in Orlando, there is a high likelihood that the home you end up buying will be linked to an HOA. It's therefore essential that you fully understand the implications of buying into an HOA community, both from a regulatory perspective as well as a financial standpoint.

    What is an HOA?

    A homeowners association (or HOA) is essentially a residents' committee that takes charge of looking after a group of communal properties within the same building or compound. They are most commonly found in shared building complexes such as a condominium where there are a number of individually-owned units or 'condos'. They are also a common feature of planned housing developments and gated communities.

    What are they for?

    Each Orlando homeowners association will have its own specific policies; however, the primary aim of any HOA is to ensure that the values of all their properties are maintained, and hopefully increased. The HOA will also seek maintain a level of decorum in the building, acting as a sounding board for any grievances residents may have or arbitrating in disputes between occupants. 

    Homeowners associations will also often dictate which sprinkler systems, fertilisers, and pesticides you may or may not be allowed to use on your property. They might also limit the percentage of gardens which you can plant in or lay flagstones etc. and you will need their permission to install things such a solar panels.

    Do I need to be a member?

    As a resident of the association you have a legal obligation to become a member of the HOA and to pay the fees, regardless of whether you intend to live in the property or not. 

    Failure to pay HOA fees on time, or to comply with the requirements of your HOA membership agreement can soon lead to late fees, interest payments and the freezing of any rental income. Continued lack of payment may eventually result in eviction and in you being foreclosed upon.

    Before purchasing an HOA-linked property in Orlando it's worth verifying whether the property is currently in compliance with HOA rules. In some cases the home you're considering buying could be in violation of an existing homeowners association regulation, which could have prompted the previous owner to sell or vacate the home.

    If you choose to purchase a property which is out of compliance you will have to take measures to rectify the issue immediately. The upside is that this property is likely to be on the market at a sizeable discount.

    Is an HOA property right for me?

    There are certainly both pros and cons to buying an HOA-linked property. One of the main advantages is knowing that you're buying into a community where grounds maintenance and other important day-to-day functions are taken care of, albeit at a certain cost.

    However, at the same time you should be aware that being part of a homeowners association may limit your ability to customise and alter your property as you like. There are also monthly fees to take into account and - in some cases - possible restrictions on letting out the property to third parties. 

    While most property investors find the positives usually outweigh the negatives, If you're someone would rather do things their own way, it may be best to consider a property investment which isn't tied to an HOA.


    by: Prime Asset Investments

Comments (0)

Recent Posts

Featured Posts

  • product HOUSING MARKET CONTINUES GRADUAL CLIMB BACK TO NORMAL IN USA

    According to the NAHB/First American Leading Markets Index, markets in 146 of the approximately 340 metro U.S. areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the second quarter of 2016. This represents a year-over-year net gain of 66 markets.

    9th August, 2016
  • product ZIKA VIRUS MAY AFFECT PROPERTY VALUES IN PARTS OF MIAMI

    Miami's trendy Wynwood neighborhood, which experienced a huge boom in property values over recent years, now faces a tremendous amount of fear and uncertainty as a result of the arrival of the mosquito-borne Zika virus says Barry Sharpe, who heads Miami-based Property Tax Appeal Group.

    9th August, 2016
  • product NEW HOME SALES IN U.S. REACH HIGHEST LEVELS SINCE 2008 MARKET CRASH

    According to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, sales of newly built, single-family homes in the U.S. rose 3.5 percent in June 2016 from an upwardly revised May 2016 reading to a seasonally adjusted annual rate of 592,000 units. New home sales are up 9.3 percent in the second quarter of 2016 from the first quarter.

    28th July, 2016