Sunday, October 4, 2015

Homeowners Associations

The latest and most egregious example of homeowners association ("HOA") abuse.  (On a daily basis I could pick many.)

A homeowner cannot fly an American flag on her own home even when her neighbors say is it fine. When an overflow meeting is called by angry residents to address the flag rule, the HOA cancels it at the last minute.  The homeowner is still looking at $75 fine for the HOA violation and has vowed not to take down Old Glory.

The lesson here?

NEVER NEVER EVER buy an investment property with a HOA.

You lose virtually all control over your investment. Period.

Most HOAs are not well run, in fact, it is amateur hour at the vast majority of them. Even when the HOA members are well intentioned (a big if) things never happen like you planned.  Costs rise faster than anticipated due to a lack of competitive contract bidding and even cronyism.  Wacky HOA members are elected who believe they are in the incarnation of Stalin.  Maintenance is deferred by homeowners on the HOA who are selling their properties soon so future buyers can pick up their repair costs.  The list goes on and on and on and on....

Sad when the Stars and Stripes are controversial anywhere.  Dumb HOA.

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