Las Vegas Review-Journal (Sunday)
Research HOA before you buy into community
Check CC&Rs and visit neighborhood at different times
While some might view homeowners associations as dictatorships, Randy Watkins, owner of Complete Association Management Company, said they’re in place to ensure that neighborhoods are attractive and enjoyable.
“They’re about compliance, not punishment,” he said. “Generally, more than 90 percent of them don’t want to fine you — they want a nice, cohesive neighborhood and community involvement.”
Each HOA, Watkins said, is governed by its governing documents, often referred to as “CC&Rs,” or covenants, conditions and restrictions, which outline the rules and regulations for the community.
They’re overseen by management companies such as CAMCO, which are responsible for inspecting the community, sending courtesy letters to the membership when violations such as parking issues arise.
“The management company works in conjunction with the board to make things happen and to guide them to ensure that they’re enforcing the governing documents uniformly,” he said. “The HOA needs to be transparent to all of its members.”
Transparency, Watkins said, is one of the most important things to look for in an HOA when buying a home in an established community.
“The board needs to be transparent to its membership about their financial state and about the shape of the community to enhance home values,” he said. “Also, look for the responsiveness of the management company to make sure questions are getting answered and notices are being sent out when there are board meetings and elections.”
Watkins said he recommends driving through a community at different times and on various days to see how it looks and functions before you sign on the dotted line.
“I can’t stress enough to drop in and visit the neighborhood several times throughout the week at different times to see what’s going on during the week and on the weekends,” he said. “If it’s a gated community, pay attention to if the gates work properly, if cars are parked on people’s lawns and if it’s being kept up.”
Watkins said your Realtor will provide a resale package, which outlines the governing documents and financial information for the HOA.
“Look at governing documents so you know what you’re buying into,” he said. “Some buy into communities and don’t know what they’re getting into.”
In a new community, Watkins said the developer is in control of the HOA’s board of directors until 25 percent of their lots are sold, in which a homeowner is then elected to the board. When 75 percent of lots are sold, the board is entirely made up of elected homeowners.
“A board member can be elected or appointed by developer,” he said. “Generally, the homeowner serves for two years or longer.”
If you’re buying into a golf community, Watkins said to find out who owns the golf course.
“Traditionally, over the last 10 years, most golf communities are not owned by the HOA, which is very important because they’re difficult to run,” he said. “If the developer owns the golf course and is also developing the HOA, that’s the ideal situation because you don’t buy into the income and expenses of the golf course.”
Knowing what you’re buying into is the key to ensuring your happiness well into the future, Watkins said.
“They’re there to enhance the value of your home, which is sometimes difficult for people to understand,” he said of the HOA. “There are certain restrictions when living in an HOA and you have to do your best to educate yourself on them.”