What Is A Home Owners Association?
Many homebuyers are unsure of how the homeowners association of a condominium or townhome works. There is actually a great advantage to having them especially in situations like this where you have multiple units in an area.
There are two pieces to the Association, the first part is the Association itself which is made up of a board of directors that serves on the Association. Those are typically residents and the homeowners vote on who is going to be president treasurer and so on.
The second piece is the management company itself. The management company is hired by the Association to take care of all of the day-to-day operations with regards to repairs, snow and lawn care and other duties.
One of the most important things that you're looking for in an association fee is that hazard insurance is covered. With that being covered you don't have an additional fee on top of your monthly association fee. When you own a single-family home you don't have an association but you have to purchase a homeowners insurance policy. The association fee takes care of that along with other things including sewer and water, snow and lawn care, professional management, building exterior and care for the common areas. All associations are little bit different but typically those are the items covered.
When you're thinking about purchasing a single-family home versus a condominium or townhome take that Association into account to help you figure out if buying a townhome or a condo put you in a better financial position than owning a single-family home where you have to purchase a homeowners insurance policy along with maybe some of the other tasks that need to be done on the exterior of your home.
To listen or download the podcast of this blog click the link below-
To watch a video version of this blog, click the link below-