How Does Living in an HOA Keep Property Values Up?
Whether buying their first house, or a forever home, potential home-buyers always have the hope of continuously increasing property values. By moving into a Homeowner Association-managed community, new residents are making a key investment into improving their net-worth. In this post, we will discuss the top three waysHomeowners Associations can provide significant property value protection and growth.
1. Shared Amenities
Many new residents want the benefits of living in a luxurious environment without having to design, build and maintain everything themselves. This is one of the most important reasons for an HOA. Residents want pools, playgrounds, walking trails, tennis courts, clubhouses and the list goes on. Having an HOA manage and maintain these amenities makes it possible for every homeowner to have a heightened sense of comfort and luxury without the liability and cost of ownership. This is a major selling point and a key contributor to increases in resale price.
2. Covenant Enforcement
While a majority of residents in any given community are going to be consistently diligent homeowners, there will always be those who don not place a high value on property appearance. In a perfect world, no one in the community would have overgrown landscaping, salvaged vehicles or overflowing trash cans, but that is just not the case. Having a clear vision of what the community wants as a whole, as communicated in the Declaration of Covenants, Conditions, and Restrictions, and having the HOA equitably enforce those covenants and restrictions prevents any one homeowner from driving down values.
3. Cultivating Community Culture
As human beings, we strive to live in a healthy community of people that have shared values and desires; developing a culture of mutual trust, encouragement, and service to each other. A Homeowner’s Association can play a huge role in cultivating a real sense of community among residents. Communities managed by an HOA plan events ranging from barbecues, pool parties, and fall festivals to wine tastings, charity 5k races and golf tournaments. By having an entity committed to the betterment of the community as a whole, residents can take comfort in the fact that they are not only investing in actual property but their lifestyle as a whole. Communities that have an established positive culture will undoubtedly increase property values overall.
Homeowners Associations provide residents with some major benefits that not only hold property value but also increase it. By managing shared amenities, equitably enforcing community covenants and cultivating a healthy culture among the residents, often times through a professional management company, property values will continue to increase, making the community more attractive to other home buyers.