HOA or No HOA? How to Decide

Some Austin neighborhoods have homeowners associations and some do not. Neither is better across the board. It depends on how you want to live.

What an HOA can offer

• Shared amenities like pools, trails, and parks
• Consistent upkeep of common areas
• Rules that keep a neighborhood looking a certain way
• For condos, exterior maintenance, insurance on the building, and sometimes utilities

What it can cost you

• Monthly or annual dues, which can go up
• Special assessments for big projects
• Rules on paint colors, fences, parking, rentals, and exterior changes
• Approval steps for projects on your own home

Documents to read before you commit

In Texas, the HOA resale certificate and the association's governing documents are provided during the contract. Read them during your option period. Look for:

• Current dues and any upcoming increases
• Pending special assessments
• Reserve fund health, especially for condos
• Rental restrictions if you might rent the home later
• Pending lawsuits involving the association

When no HOA makes sense

Many of Austin's older central neighborhoods have no HOA. You get more freedom to change your home and yard. You also take on all your own exterior maintenance, and there may be city rules to follow instead, like historic district guidelines in some areas.

How I help

I always ask buyers how they plan to use the home, whether they might rent it out someday, and how much they want to customize. Those answers usually make the HOA question easy. If you are deciding between two homes and one has an HOA, I can help you compare the true monthly cost.