What is a Home Owners Association?
A homeowners association is a group of individuals that owns and controls the association property, which is typically a building or set of buildings in a residential area. They manage and enforce the rules set for their community, which usually include providing for common areas, such as hallways, stairways, lobbies, and parking lots.
Most homeowners associations nowadays hire HOA management companies for services, such as collecting dues for the proper upkeep of common areas and controlling access to the property. Such management companies also deal with larger issues, such as lawsuits, holding auctions for delinquent payments, controlling construction and remodeling in the community, and ensuring good relations among neighbors. Click here to understand more about the role of HOA management companies.
What is the Need for Home Owners Association?
Homeowner associations are usually formed when a group of individuals who own homes in the same neighborhood decide to form a corporation or entity together. The value of their properties increases because they band together and take care of common problems, which they can resolve easier than if they tried solving them individually.
A homeowner association is governed by certain regulations that protect the common interest of their property owners. They have the authority to enforce the rules in their communities, and they resolve any issues that arise within it. The association also makes decisions that affect the entire community.
Homeowner associations are beneficial to all homeowners who live in the area, especially since they help preserve property values by eliminating competition between buyers and renters. They also make sure everyone follows the rules and regulations set in place by the association, which is vital since it protects each homeowner’s interest, especially if anyone wants to sell or rent out their house.
Why Should HOAs Hire HOA Management Companies?
Homeowners associations often hire HOA management companies that can handle common area problems, such as fixing broken windows and doors, hiring vendors who provide services like parking lots, and handling complaints from other homeowners about violations of their rules. These companies also look for people who violate rules and regulations set for the community and make them pay fines or move out by force.
HOA management companies perform other tasks as well, such as organizing community events, collecting dues from each homeowner to provide funding for common area maintenance and development, maintaining records of contracts, building permits, etc., and updating members of the community on important information.