15 Pros and Cons of Retiring in an HOA Community

An HOA is a homeowners association that runs a neighborhood or community. Its members make the rules, enforce them, and ensure that no house falls into a derelict state. 

They decide what amenities are included and who pays for upkeep. They hold the responsibility — and the decision-making power.

That can be a positive and a negative. If you're thinking about how you're going to live on a fixed income, an HOA can be seen as both an unnecessary expense and a way to avoid wasting money.

Here's a look at the pros and cons of retiring in an HOA community.

The level of exterior maintenance included will vary from community to community, but it often includes gardening in common spaces, upkeep of streets and public areas, and occasionally the exterior of buildings.

Since the HOA can strictly enforce rules around what each home or unit looks like, you won't have to worry about a dramatic decline in curb appeal and, therefore, property values. Generally, your home will maintain its value consistently year over year.

Whether it's a pool, fitness center, or playground for the grandkids, an HOA community can give you access to amenities you wouldn't have had in your own single-family home in an independent neighborhood.

A new roof is expensive, but if you're in an HOA condo building, you can rest assured knowing that improvement will probably be drawn from the reserves. It may increase your monthly HOA payment briefly, but the cost is shared.

No one wants to fight with their neighbors, but it does happen. If you're having a disagreement over trash can placement or noise, you can count on the HOA to intervene and take care of the situation through mediation.

Depending on who's in charge of your HOA, there may be monthly socials or activities to get to know your neighbors. Even if you aren't ready for an official retirement community, you may get similar perks in an HOA neighborhood.

If your community has a gate or a doorman, there's an added layer of security that can be worth its weight in gold. You know that anyone who gained entry to your community had to go through the proper protocol.

In theory, everyone living in the community has signed off on the rules and is willing to abide by them. That should make life easier when disputes come up, since you can simply go back to the bylaws.

While the rules can be a positive, they can also be a negative. You may love the look of a community and its location, but upon reading the HOA rules, they simply don't work with your lifestyle.

The monthly dues can increase if the board decides the reserves need to be increased or if there is a major assessment for a capital improvement project. 

If you don't have a say in those decisions, it can feel beyond your control — or you may wonder if they're using the funds wisely.

If you've dreamt of a blue house, but your HOA only allows you to paint your home white or tan, then you're going to find yourself at odds with the HOA. And the chances of being granted an exemption aren't on your side.

Your HOA may require that lawns be kept neat — and their standards of neat could be different than yours. It's easy to become resentful when yard work goes from a hobby to something you're required to do.

Depending on the HOA, there may be rules around the kind of pets you can have, even getting as nuanced as the type of breed.

If you don't pay your HOA dues, you could face major repercussions, including a lien on your property or even foreclosure in some extreme cases.

You may buy a house or condo in an HOA, then a few years later, realize that you want to move into a community with more assistance. 

If you're not in an HOA, you can rent the property for extra monthly income without a second thought. But, if you're in an HOA, there may be rules around how many homes can be rented at any one time.

If you're considering downsizing from your current home but aren't quite ready to move into a retirement community, an HOA neighborhood can be a good compromise.

HOAs provide some level of shared responsibility, a built-in community, and a lower-maintenance lifestyle that allows for a stress-free retirement instead of spending your days concerned with the upkeep of your home.