Pros and Cons of an HOA

There is a lot a debate about the pros and cons of an HOA and a lot of it just comes down to a personal choice. Here are some "Pros and Cons" -- however, as with everything, a "pro" for you could be a "con" for someone else!

Below are five ways that an HOA is seen as a positive:

1) The HOA is beneficial to the community and maintains and pays for the upkeep of common areas, including ponds, swimming pools, tennis courts, play grounds, golf courses and club houses. It could be said that without an HOA you may not be able to have these amenities in your neighborhood.

2) Some HOAs provide services such as driveway snow removal or lawn maintenance for each residence. Perfect for busy families or retirees -- and it ensures a uniform and well-kept look throughout the neighborhood.

3) An HOA will have a mechanism to mediates disputes and quickly resolve grievances between residents.

4) An HOA will help property values to stay high by regulating the things that help keep a neighborhood looking good, (keeping garage doors closed, no cars left in driveways over night or on the street, no signs in yards, holiday decorations only left up for a month, etc.)

5) An HOA may plan annual parties, family nights, pool parties, neighborhood clean-up days, etc.

Below are five ways that an HOA may be seen as a negative:

1) Some people don't like being restricted by neighborhood rules, such as how high your grass can get before it is mowed or how many pets you can have.

2) HOAs will often have regulations about renting out the property, and may need to approve the renters.

3) Neighborhood Association dues that help maintain the common area and which go to the special events add an additional expense to home ownership.

4) If you do not pay your dues on time, an HOA can put a lien on your home or force a foreclosure on your property.

5) Some HOAs are poorly managed and a lot of times the board has a lot of turn-over. This is in part because board members tend to be volunteers with a paying day jobs and busy families. (This is why many HOAs turn to a professional HOA management company to help set and guide the rules).

In the end, your decision to move into an HOA community is one that you need to carefully consider - and each HOA is different! Be sure to read the covenants of any HOA you are considering and if you do choose an HOA community, you will always be happier with the results if you stay involved. HOAs are about and for the residents!

Kuester Property Management

HOA Management Company

Charlotte, North Carolina

Going Green and Your HOA

Many people throughout the Carolinas are making an effort to incorporate "Green" ideas into their daily living. Yet, for those of us who live in neighborhoods with Home Owner's Associations, being "green" can sometimes cause problems!

Energy-saving ideas such as using clotheslines, solar panels, and replacing our grass lawns with rocks and drought resistant plants are generally frowned upon in most of the covenants used by local HOAs.

So what is an environmentally-conscientious homeowner to do? The short answer is to be familiar with all of the rules and regulations that your HOA has. Know that many of these rules are standard and handed down by the builder when the neighborhood was built. Many of these are very old ways of thinking and your Home Owner's Association has the power to change these with community support.

If there is a neighborhood policy that you think is worthy of change, you are probably not the only one. The Association is made up of your neighbors and could include YOU. So get involved, rally the other "green" folks and think about what you can do to be good homeowners and environmentalists.

Ultimately, HOAs exist to protect the rights and property values of the members of the neighborhood. If you can present an argument that is accepted by the majority of the voting neighbors, you can get a covenant changed.

Are HOA Neighborhoods Worth It?

Dear Property Manager:

IT Seems like suburbs in many parts of the country, including the Charlotte suburbs are full of developments with HOAs. What are the benefits and pitfalls of living in HOA development communities vs. just buying a house in a "regular" neighborhood?

Is it getting harder to find "regular" non HOA neighborhoods to live in in the suburbs of Charlotte? What is the appeal?

Ken - Fort Mill

Dear Ken:

It is possible to find houses not in a regulated HOA community in and around Charlotte, and you may find that they are less expensive than similar HOA homes, however there are pitfalls.

When a person moves into an HOA neighborhood they agree to the covenants of the neighborhood. They agree not to have more than say 5 animals in the home, or not to have a horse in the back-yard, or not to paint their front door purple. The rules of each neighborhood differ but they are designed to protect the homeowner, the value of the property and the neighborhood.

As a homeowner in an HOA neighborhood, you are given the opportunity to vote for changes in the rules and regulations, as well as participate on the committees that determine how much of the budget goes to things like common area maintenance or special projects, and what the covenants are. But majority rules, and you have to live with what the majority votes for--that is what you agree to when you move into the neighborhood.

The benefit to an HOA is that things are kept at a known norm. If the neighbor puts up a 12 foot fence all around his property, he will be fined and made to remove it. If he parks 3 rusted out Buicks in the back-yard he will be asked to move them, fined if he doesn't and potentially sued by the HOA if there is further non-compliance.

The down-side for you is if you are the kind of person who doesn't think they need any one's permission before digging a moat around their home, you will be the one who suffers the consequences with the Property Management company and the HOA. But for the most part, an HOA is a good thing, for most people they make sense, and that is why they are worth it, and that is why HOA neighborhoods are so popular!

I hope this answers your question!

Property Manager
Kuester Companies
HOA Property Management Company

What does an HOA cost?

Dear Property Manager:

I was recently elected to our HOA board and we are considering changing property management companies. Can you tell us what the average cost per resident is for HOAs? And besides the basic services, what can an property management company do? Can we include these in our request for proposal?

Kim T. HOA President

Dear Kim

I cannot give you an "average" cost per resident since the cost of HOA management service is directly related to the scope of the work the management company does...and this can vary. You and your board need to develop a scope of work and request proposals from at least three qualified management companies in the Charlotte area. Make sure that your prospects specialize in HOA management, and will offer references. But make sure to provide them each with the same list of "wants and needs." Some companies, (such as Kuester) now offer online applications for the residents to track their HOA dues status and other neighborhood information. This is a great option and should be something your candidates offer.

As for the "what" and HOA can offer, here is a link to the HOA services that Kuester provides. This should give you a good idea of what you can expect and what you can request when you fill out your RFP.

Best of luck and please contact me if you have any additional questions about HOAs!

Property Manager
www.kuester.com

News: Kuester Names Among the 10 Largest Real Estate Firms in Charlotte

We are pleased to announce that Kuester was named among the top 10 largest real estate firms in the Charlotte-Metro area.


The Charlotte Business Journal ranked the Kuester Companies #8 in terms of local employees and #25 in terms of commission-only brokers.

Besides our strong presence in Charlotte, we also have offices in Boone, Fort Mill, Myrtle Beach, and Concord.

If you would like any information about Kuester, property management, HOA's, or available property in our service areas, please contact us at: 888.600.5044.

The Relationship between the Board, HOA Management and the homeowner

 It is sometimes found in the Charlotte HOA management industry and beyond that the property management company is looked at as the "bad guy" due to the requirement that it send written notification to homeowners where there is a violation of the Association Covenants and Restrictions. Most times, the first contact that a homeowner may receive from one of our Charlotte property managers at Kuester is a courtesy letter.  This letter is not a violation notice, just an initial communication from us to let the homeowner know that something might be going on that they need to look at before it gets worse.  When communicating with homeowners, we constantly encourage them to remember that we are contractually bound to partner with the Board of Directors in its fiduciary duty to uphold the Association's Covenants and Restrictions in the manner that is described by South Carolina or North Carolina homeowners association law.  We always strive to work in a friendly manner to meet the challenge of dealing with homeowner’s concerns or possible escalating problems by acting as mediator so neighbors need not deal with neighbor issues.  In the South Carolina and North Carolina property management and HOA management industry, we feel our superior communications and service make us the best.  Give us a call today at 888.600.5044 to discuss how we may be of assistance to your community or homeowners association.  You can also visit our website.