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Weighing the Pros and Cons of Homeowners Associations (HOAs)

10-07-2022About Mortgages

You may have heard mixed reviews about HOAs. Some people love them, while others could live without them. So, what's the verdict? In this blog post, The Mortgage Brothers Team explores the ins and outs of HOAs so you can decide for yourself if living in one is right for you.

What Is an HOA?

A homeowners' association (HOA) is a non-profit organization created by a real estate developer to manage a community of homes. Developers typically turn over control of the HOA to the homebuyers once a specific percentage of homes in the development have been sold.

Pros of Living in an HOA

One of the benefits of living in an HOA is that they promote a sense of community by organizing social events and maintaining shared spaces like parks and pools. HOAs also help to keep neighborhoods safe and tidy by enforcing strict guidelines around property maintenance and landscaping. An HOA may be a good fit if you like rules and regulations.

Here's a quick breakdown of the advantages of living in an HOA:

  • Security: Many HOAs hire security guards or install security systems like gated entrances to keep residents safe.
  • Maintenance: HOAs often maintain shared spaces like pools, playgrounds, and landscaping, so you don’t have to worry about it.
  • Amenities: Some HOAs offer amenities like gyms, tennis courts, and clubhouse access to residents.
  • Social events: Many HOAs plan social events throughout the year, giving residents a chance to get to know their neighbors.

Cons of Living in an HOA

Living in an HOA often comes with additional costs. For example, you'll likely need to pay monthly or annual dues, which go towards things like maintaining shared spaces, paying salaries for on-site staff, and funding insurance for the community as a whole. In some cases, these costs can be quite high, so if you're on a tight budget, an HOA might not be the best option.

Here are the drawbacks of living in an HOA:

  • Costs: Monthly or annual dues can be expensive, and you may also be required to pay special assessments for major repairs or improvements.
  • Rules and regulations: HOAs have strict guidelines around things like property maintenance, noise levels, and guest parking.
  • Lack of privacy: Because HOAs often have strict guidelines for noise levels and property maintenance, you may feel like you have less privacy than you would in a non-HOA community.

The Verdict

Ultimately, whether or not an HOA is right for you depends on your personal preferences. If you like the idea of living in a close-knit community with plenty of amenities and security, an HOA may be a good fit for you. But if you prefer a more relaxed lifestyle with fewer rules and regulations, you might want to look elsewhere.

Getting Insurance for Your HOA

One important thing to know about HOAs is that they're required by law to carry insurance (with some exceptions). The type of insurance your HOA needs will depend on the specific details of your community; however, in general, most HOAs carry general liability insurance and property insurance.

You may be able to purchase HOA insurance even if you don't live in an HOA. Some homeowners go this route because it typically offers more coverage than a standard homeowners insurance policy for a lower premium.

That said, HOA insurance policies usually have lower limits than standard homeowners insurance policies. So, if you live in an HOA and decide to purchase an HOA insurance policy, you may still need to purchase a separate homeowners insurance policy to make sure your home is fully covered.


If you're thinking about buying a home in an HOA, it's essential to do your research ahead of time, so you know what you're getting yourself into. Talk to current and former community residents to get their take on what it's like to live there.

Further, be sure to read through the community's governing documents, so you understand what kinds of rules and regulations you'll be expected to follow if you do decide to move in. And look into the implications of HOA insurance to determine if you could benefit from purchasing a policy.

Are you looking to buy a home or refinance in Arizona? Contact the Mortgage Brothers Team today! (602) 535-2171