What is an HOA and Why are They Important

When asked about HOAs, people have differing opinions. Generally, it refers to a group of homeowners who set the rules and regulations of the community and collect fees for the upkeep of common areas and, in some cases, exterior maintenance. But what is an HOA?

The HOA composes of a board that manages common areas of the community and the rest of the homeowners. Members of the committee usually volunteer while the members own homes within the neighborhood. The board also enforces community rules and regulations for living in the community.

What is HOA, and How Does It Work?

HOAs are common in most states. Tennessee alone has 4,880 HOAs and counting. Before buying a home in Knoxville, it is essential to ask your agent for the Covenants, Conditions, and Restrictions (CC&Rs) to ensure you if the policies in the CC&Rs fit with your lifestyle. 

Responsibilities

Depending on the community’s by-laws, their purpose is to maintain the neighborhood’s signage and landscaping. They may also manage amenities like the clubhouse, swimming pool, and the roadways within the community. Furthermore, the HOA board holds regular meetings with homeowners to agree on rules and regulations. Generally, an HOA board will meet monthly.

HOA Fees

Homeowners may pay HOA fees monthly or yearly. The fees cover maintenance costs of shared facilities and surroundings in the community. For instance, residents may pay for repainting the fences around the neighborhood. Additionally, HOA fees range from $50-$2,500 depending on the type of labor and cost of materials. Also, the HOA board may ask for a one-time expense in the event of calamities that damage common areas of the community. Homeowners may also incur fines if they break any of the rules.

Rules and Regulations

Depending on the agreement, HOAs impose restrictions on home exterior improvements such as paint color, size of the fences, etc. They can even determine the number of occupants and pets allowed and limit household rentals. 

Benefits of an HOA

Having an HOA can be an advantage if you agree to specific policies. One benefit is that it maintains peace and order in the community. There are rules like minimizing noise in the evening to help residents get a good night’s rest. Another benefit is in connecting to neighbors through community events. These activities help homeowners learn more about their neighborhood and make friends simultaneously.

Are you considering buying or selling a home in the Knoxville area? We’d love to help you! Please click here for our contact page, and we’ll reach out to you promptly. Would you like to see more great info from the Knoxville Home Team? Please click here for our blog page.  

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