What is a homeowner’s association
A homeowner’s association is essentially a non profit organisation that is charge of managing shared residences such as condominiums or tower blocks. Across the world, such organisations may be known by several different terms, such as ‘housing associations’ or ‘block services’. Since such a large proportion of the population now choose to live in shared buildings the topic of homeowner’s association is often in the news.
Controversial but necessary
The general view on homeowner’s associations can be fairly controversial. Since homeowner’s associations often enforce rules and regulations to ensure the high quality of living within the building, many residents can feel that they are living under too strict of a regime. Disputes between residents and their homeowner’s association has even led to an increasing number of people being evicted from their homes.
Even so, many homeowners are actually pleased to have a well managed homeowner’s association at the steering wheel in their area. Many people report feeling secure to know a well respected company such as the Cedar Management Group in charge of all the important decisions.
Regardless of your view on homeowner’s associations, many will actually find that joining one is not always optional. When purchasing a home in a shared residence the majority of people will be automatically signed up to the local homeowner’s association. Not only that, but homeowner’s associations commonly impose an extra fee which is usually collected on a monthly basis from the homeowners.
Benefits of a homeowner’s association
It might seem that buying a home in which you are obliged to pay an extra fee on top of your mortgage will cost you more in the long run. Infact, many people are often put off of the idea of purchasing such a home completely. However, interesting research has suggested that there are actually lots of financial benefits from being part of a strong and decisive homeowner’s association.
How they can save you money
Many households across the globe are not lucky enough to be able to afford many luxury amenities, such as swimming pools, tennis courts and gyms. However, when you live in a shared building and join a homeowner’s association you may well be signing up to use several shared luxury facilities. For example, within the range of two shared buildings, there are often communal pools and sports equipment available for all residents to use, free of charge. Not only that, but the maintenance of the facilities is taken care of by the homeowner’s association. This will save money not only in gym memberships but also maintenance fees.
Increased resale value
Since a main goal of a homeowner’s association is to protect the value of the property, you may find that this is one of the most beneficial parts of being a member of such a scheme. The association should be maintaining the property to a high standard and studies have shown that successful homeowner’s associations actually improve the resale value of individual apartments in over 90% of the cases.