Homeowners Associations in Gated Communities
The security, amenities, regular maintenance, and landscaping that accompany limited-access communities aren’t free. All gated communities will have a homeowners association (HOA), which means you’ll pay an extra cost to live in the neighborhood.
HOA fees are required fees that are generally collected monthly from residents in the association. Some neighborhoods may have a voluntary HOA. You won’t be able to take advantage of the amenities paid for by the HOA if you opt-out, but you won’t have to pay the fee, either.
Many homes are in an area with a mandatory HOA. If you purchase a home with a mandatory HOA, you must sign documents indicating that you agree to follow the HOA regulations. You could be charged assessments, fees, or fines if you break those rules.
The HOA is responsible for structuring and organizing the efforts to maintain the neighborhood’s common areas, roads, sidewalks, and curbs. It could also include maintenance for your own front and backyard, which could mean less yard work for you.
HOAs and Homeowners Insurance
Besides creating a cleaner and neater appearance, HOAs can also save you money on homeowners insurance.
Residential properties in a community with a homeowners association generally have strict rules, community standards, and a regular security watch. Some even have a gated entrance with a security guard to control who has access to the neighborhood.
That means your home is likely to be well-maintained and have a lower risk of theft or vandalism. Depending on your homeowners insurance company, you may qualify for a discount on your insurance premiums if you belong to an HOA.