The intent of a homeowners' association is to protect the visual appeal of the neighborhood, protect property values and maintain common spaces. These organizations exist for the purpose of benefitting the property owners who live in the community. To make HOAs work well, property owners have to agree to abide by the terms set forth in the agreements that they likely signed upon moving into the Florida neighborhood.
The potential drawbacks of condo living
Buildings that are currently used as apartment complexes could one day be converted into condos. In an apartment complex, each tenant pays rent to the landlord who will maintain the property. In a condo, each resident owns their own unit and may be assessed a fee to maintain a common area. While it may be worth it for a tenant to own the space that he or she is currently renting, that is not always the case.
Using an FHA loan for an investment property
When it comes to investing, many Americans turn to real estate as an alternative to the stock market. However, real estate investment typically requires more capital.
What to consider when starting an HOA
Homeowners associations have become more popular in recent decades in Florida and throughout the country. As of 2010, roughly one in five Americans lived in a property controlled by an HOA. To create an HOA, a group of individuals will need to create an LLC or similar entity and come up with the rules that homeowners must follow. Finally, it will be necessary to create bylaws and ways for regulations to be amended in the future.
