What is a Homeowner’s Association (HOA)?

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homeowners association, hoa

A homeowners association (HOA) is an organization put together by a real estate developer when planning a new development project. This management organization sets the rules and regulations of a community and is in charge of the upkeep of common areas within a development such as pools or landscaping. 

As a real estate investor, HOA fees are something you have to account for in your holding cost. Additionally, there may be regulations you have to follow when rehabbing the property. For example, some HOA’s have rules regarding the types of exterior colors used when painting a home.  Some HOA’s have rules regarding the types and colors of roofs that can be used on a home.


These documents and information contained herein are designed to provide accurate information on the subject matter being covered. It is given with the understanding that the authors and distributors are not engaged in providing legal, accounting, real estate or other professional advice.

If legal advice or other professional assistance is required, a competent licensed professional in your area is recommended.

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