3 things you need to know about homeowners’ associations

When you buy a condo or single-family home that’s part of a planned development, you’re often required to join a homeowners’ association (HOA). An HOA is an organization that’s in charge of the regulation and upkeep of private properties in a residential community. Here are three things you need to know before joining one.

1. Fees. HOA fees range anywhere from $100 and up per month. It’s important to consider these fees when deciding whether you can afford to buy a home.

2. Rules. Some HOAs have strict rules dictating how you maintain your property. Find out what types of changes you’re allowed to make to the appearance of your home and yard and whether you’re allowed to have pets or rent out your property.

3. Services. You also need to know exactly what you’re paying for in terms of amenities. Depending on the community, the HOA may perform only basic maintenance tasks or provide bigger-ticket services such as free access to a pool or community clubhouse.

It’s also a good idea to talk to members of the HOA to find out how the organization is run. Even better, attend an HOA meeting to learn more about the community you’re thinking of joining.