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.

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1. Pro: Exterior maintenance included

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.

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2. Pro: Stable property values

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.

3. Pro: Shared amenities

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.

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4. Pro: Shared capital improvements

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.

5. Pro: Unbiased third party in neighbor disagreements

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.

6. Pro: Built-in activities

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.

7. Pro: Safe spaces

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.

8. Pro: Everyone has signed off on the rules

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.

9. Con: You may not like the rules

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.

10. Con: HOA monthly dues can increase

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.

11. Con: There are stipulations around your home’s exterior

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.

12. Con: Your yard work may be mandated

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.

13. Con: They can determine whether you can have a pet

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.

14. Con: There are major repercussions for not paying dues

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.

15. Con: They control whether you can rent the property

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.

Bottom line

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.

Money tips that can work for everyone

No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.

Focus on paying off your debt . Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.

Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.

Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).