hey what’s going on everybody we get
asked a lot of times what is an HOA or what is a homeowner’s association and
that is what we’re going to talk about today we’re going to start right now hey
what’s going on everybody it is Mark with my Front Range living powered by
Remax integrity and I am a full-time real estate agent here in Colorado
Springs Colorado now whether you’re in Colorado Springs whether you’re in
Colorado wherever you are HOA stands for the exact same thing and
that is homeowners association and a lot of times people want to know exactly
what an HOA is and more specifically what an HOA does it is a very polarizing
topic people typically either love homeowners associations or hate
homeowners associations and before you think I’m a real estate agent what would
I know about that before I got into real estate here in Colorado Springs I was a
homeowners association manager I was a community manager of associations for
almost nine years so I’m really well-versed in what homeowners
associations are and what they do for the individual homeowner so sometimes
you’ll hear HOA’s called covenant controlled communities if you see the
signs and the marquees out front and the larger communities of covenant control
community that’s what it’s saying is there are covenants there are rules
there are regulations that are governing this body so it’s important to
understand that homeowners associations are very very different for
single-family communities versus multi-family communities a prime example
so townhomes and condos that’s a multi-family situation okay and so the
homeowners association fees should be a little bit higher and the reason for
that is the Association has responsibility for more maintenance that
means in a townhome and a condo typically the Association is responsible
for the exterior siding stucco whatever that may be
the roof insurance as well as the repair and replacement accordingly all of the
landscaping all the maintenance of the landscaping snow removal things of that
nature so your association fees with
multifamily or townhome and condo scenarios are typically far higher than
single-family single-family normally what you’re going to get from an
association standpoint the value that you’re gonna get for those assessments
is trash removal is management of the community and then just ensuring and
maintenance of the common areas which for common areas think in a
single-family community like your front monument it’s pretty nominal compared to
the overall multi-family because the landscaping and everything else in
multifamily all of it is covered by the association
whereas single-family homes that’s a homeowner responsibility in a
single-family example being our home is a single-family here for Jen and the
boys and I we have to mow our own yard we have to keep our grass green we have
to maintain the trees we have to maintain the flowers we have to shovel
our own driveway which now that we have the boys it’s pretty great, we’lll just send
them out but the point is those maintenance obligations belong to us not
the Association whereas in the townhomes and condos all of that stuff they mow
and they trim and they prune and they shovel the sidewalks so all that stuff
is done on the multifamily side so another thing that can impact homeowners
association assessments is just the amenities or the maintenance obligations
of the Association an example being even if you’re in a single-family home if you
are in a gated community and that happens on a pretty regular basis if
you’re in a gated community you need to pay more because those gates have to be
maintained on a regular basis all the homeowners are gonna have to have gate
openers things of that nature typically if you have a gated community your
streets are private roads and that means that the Association has to pay to have
the the asphalt sealcoating or sometimes after 25-30 years you might need to rip
them up entirely and have them chip sealed and overlaid and have them
completely redone so that’s gonna raise your assessments
and the same thing goes for multifamily if you have
private streets if you’re gated if you have a clubhouse
in any of these scenarios you have to pay to maintain that Clubhouse if you
have a pool or a hot tub so the amenities also impact the
homeowners assessments so a lot of times when we talk about maintenance there’s
common maintenance area and common area so common maintenance area means that
it’s just a maintenance obligation of the Association not necessarily everyone
has access to that area it’s just a maintenance area that the Association
takes care of now a common area your your pools your club houses your parking
lots things like that that’s where anybody in the Association
can go and has a right to go so there’s two very very different things so the
reason that I’m that I personally appreciate homeowners associations
especially now being on the real estate side of the communities is the fact that
you can tell an aesthetic difference very very quickly
very very easily if you’re in an association or you’re not in an
association Amber and I were just having a conversation before we got on air here
about the fact that she doesn’t appreciate an association where there’s
no parking there’s over there there’s no overnight street parking and that’s okay
I understand that but when you drive down our street and you have a ton of
cars lining the street that’s frustrating and can be dangerous for
kiddos who may be playing in yards or so on and so forth so there’s good and
there’s bad and I think from an aesthetic standpoint a nice clear open
streetscape makes a big difference when you’re looking to buy or sell a home
it’s inviting it doesn’t look as cluttered as a matter of fact when I
talk to a client last week and they’re like man that guy right over there he’s
got four or five cars that he just parked on the road and just weed we
don’t have anywhere to park so it really does impact the value of your home if
you if you take a look at the fact that associations are going to have you
you paint your home they’re going to have you make sure that you have
standards that you are keeping the maintenance up to it makes a huge
difference in the value of your home people pull up and they’re like this is
a very well maintained home so is your neighbors so is your neighbors so is
your neighbors so when they come down a street full of very well-maintained
homes or like yeah this is pretty fantastic the other side of that coin is
let’s say that you have an RV and you don’t want to pay for storage there’s no
reason that you shouldn’t be able to park it in your yard
that’s a prime example for a lot of people why they don’t want an
association because the Association is going to have you move that RV or camper
or boat or whatever it is right and there are some people who need that
space and want that space or I can build a shed whenever I want to
great then an association isn’t for you I’m just saying from a value standpoint just
be cognizant of that it’s important to take a look because you know not
everybody wants to have that RV or camper sitting next door in the backyard
but some people want that specifically and that’s why they don’t want an
association so that brings me to the point of make sure that you’re reading
your Association documents before you close on the home here in Colorado and
again I don’t know what it’s like nationwide it’s known in the state of
Colorado we are required if there is an association as agents we’re required to
get those documents to the buyers prior to the transaction moving forward
there’s a date and deadline that we have to as selling agents get those documents
to the buyer and the buyer’s agent for review take a look at them because the
reality of it is if they don’t allow street parking and you have those five
cards or they don’t allow RVs to be parked or boats or campers and that’s
one of the reasons you want to buy a home then that home is not for you so
make sure that you’re looking at those documents before you go through the
transaction with your home and get with your agent on that so they can help you
out so another thing a lot of you will get
upset about is how much association fees costs here’s the deal when
you are budgeting every single year your insurance is probably going up right
your utilities are probably going up the cost of doing business goes up every
single year and so I always told people when we were budgeting for the
Association I’d say hey you know you need to take a look at this stuff
because you have to continue to put money aside for long term maintenance
obligations okay and so if all of your business expenses as an association cost
three or four percent more than they did last year and you don’t raise those
assessments you’re headed for trouble it makes a big big difference
a prime example being we had a hailstorm come through a few years ago no one had
really thought about it until there weren’t enough resources in the savings
account of these associations to pay these super high deductibles for wind
and hail claims and so special assessments went out people got grumpy
because they hadn’t really planned for it so as far as the documents I keep
referring to the documents there is a hierarchy of documents in the state of
Colorado again I don’t know nationwide but there’s a hierarchy of documents and
nine times out of 10 most of your answers can be seen in the covenants the
covenants or where a lot of the rules and regulations are and if associations
want to get more specific about those rules and regulations they will have a
separate drafted document for rules and regulations but the covenants tell you
the association maintenance obligation the covenants tell you what the
homeowners are responsible for the covenants basically give authority and
responsibility across the board not only for the Association but for the
homeowners and what the expectations are so hey no no pink houses you can’t paint
your house pink so again when you get those documents in the in the
transaction and you wanted a pink house that Association isn’t for you you’re
going to want to go out and find an association that allows pink houses and
I wish you luck with that I don’t know of too many associations that allow pink
houses but you see what I’m saying so make sure that you’re reading those
documents reach out to your agent say hey what does this mean because you’re
agent should be pretty well-versed in what those association documents look like so hey
as always we hope that you found value in this video we know it ran a little
bit long but homeowners associations HOAs covenant control communities
however you want to look at them they raise a lot of questions get a lot of
emotions going in a lot of people and it’s really important to be educated on
those things because if you move into an association and maybe you didn’t know
that you moved into an association there could be huge huge implications in that
so it’s important to educate yourself on associations as always if you have
questions please reach out to us it would mean the absolute world to us if
you would click below and subscribe to our channel we put new videos out every
single Monday and they hopefully provide as much value as is humanly possible if
you have questions or comments you can hit us up down below and we would love
to help you out any way that we can once again I’m mark with my Front Range
living powered by Remax integrity thanks for stopping by we look forward to
seeing you soon bye

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