Does an HOA Increase Property Values?

Does an HOA Increase Property Values?

HOAs as we know them were created in the 1950s and 1960s, but some trace them back to the passing of the GI Bill in 1944.

With WWII ending, the government needed a way to house its veterans. The solution was the GI Bill, which gave money to veterans to help them readjust.

In 1947, a community called Levittown began taking shape. Levittown provided affordable housing for veterans. Other communities followed, but added regulations, leading to the first HOA.

Why do HOAs still exist, though? Is HOA property maintenance worth it? Do they add any value to the property? We'll talk about how that works here.

Does an HOA Increase Property Values?

The simple answer to this question is yes, but it's important to understand why. HOAs function much like a democratic council because every member is encouraged to share their opinions and concerns.

This gives you more of a say in your home and how you handle it than most other situations would. For instance, payments don't go up unless a majority of homeowners agree. Being in a homeowner association increases property value in other ways, too.

1. Curb Appeal

Among the most common homeowner association rules are landscaping regulations. These rules require an HOA member to mow their lawn, shovel snow, rake leaves, and other basic lawn maintenance tasks. This is done to make the neighborhood more attractive to other potential members.

HOA fees are collected for similar reasons. Maintaining the building keeps it functional and beautiful. The more they take in, the more improvements they can make to the property.

Please note that while homeowner associations are not for profit, they aren't necessarily tax-exempt. This is important to note if you're involved in homeowner association management.

2. Rules and Regulations

HOA rules deal with more than appearances. Many of them are in place to make the homeowners themselves more comfortable. For instance, rules against excessive noise are common.

Many other HOAs forbid pets, although service animals are an exception. Garbage disposal, occupant capacity, and rules for house guests are other common rules.

3. Amenities

Not all homeowners' associations offer amenities, but many of them do. Some of them offer access to a fully-equipped gym or a small sporting arena.

Some of the homeowners' associations in Del Mar, California are great examples of this. Don't be surprised if some of them don't offer pools. Del Mar is a beachside neighborhood, and its name literally translates to "by the sea." Whether there's a pool or not, you'll still have a place to swim.

HOA Property Maintenance and How it Helps

HOA property maintenance plays an important part in raising the value of your property and those around it. We've discussed a few of the things HOAs do to make their communities more appealing here, but there's always more to learn.

You can learn more about HOAs, and how they work by reading our blog. Keep in mind that everywhere is unique because the laws surrounding homeowners associations vary from state to state.

If you're in an HOA and would like some extra help keeping it organized, feel free to contact us at Del Mar Community Management.