Homeowner’s associations have many benefits that make their communities better. Building a homeowner’s association can help everyone in the community get involved in keeping the area clean and attractive. It can also spread out the costs associated with certain repairs or maintenance of the property.
Homeowner’s associations, also known as community associations, provide services that a city may not be able to, such as paying for services such as private security. They also help prevent foreclosures by identifying when homeowners are in distress and helping find solutions (or, at the very least, maintain the property).
A good homeowner’s association can boost the value of the homes within the community it serves, which may help people sell for more when they’re ready to move.
Do you need legal knowledge to put together an HOA?
If you want to build a homeowner’s association for your community, it’s important to know your legal rights and responsibilities. You need to know that the bylaws you put into place are reasonable and legal. Since contracts are involved, you’ll want to be sure that they’re binding and have reasonable expectations for homeowners and the HOA alike.
Homeowner’s association fees
Most homeowner’s associations do collect fees, which is another thing you’ll want to make sure is legally allowed at the amounts that you want to charge. Homeowner’s association fees go towards things like maintaining properties and providing amenities to a community. Keep in mind that those fees do have to be spread among the homeowners’ needs, so being able to hold them in specialty accounts may be beneficial.
Resolving HOA conflicts
Homeowner’s associations have the right to enforce the conditions of the contracts that homeowners sign with them, but you do want to make sure that those contracts are reasonable. You should also consider adding arbitration clauses or other forms of dispute resolution, so that you aren’t unnecessarily pulled into litigation.
With a reasonable contract and bylaws that the community can easily adhere to, an HOA can be successful. If you’d like to put one together, make sure you understand how the law applies before you begin.