HOA (Homeowners Association)

A governing body that collects dues from owners in a development and enforces shared rules.

HOAs charge monthly or annual dues (typically $50-500/mo for SFRs, can be $500-2,000+ for condos) and have legal authority to lien properties for unpaid dues. For investors, HOAs matter in three ways. First, the dues are an operating expense — model them in your NOI. Second, the CC&Rs may restrict rentals (no leases under 6 months, no STR, no pet rentals, etc) — read them BEFORE close. Third, special assessments for major repairs (new roof, siding, parking lot) can hit owners with unexpected one-time bills of $5-50k. Always pull the HOA financials and reserve study during due diligence.