- December 30, 2018
- Posted by: Scott Setterlund
- Category: Business plans, Community, Finance & accounting, HOA
People who seek the American dream of owning a home are flocking to Idaho, as HOAs help to improve property values. The cost of living is lower. Home prices are lower. And, Idaho has the best quality of life compared to any other state. As a result, developers are purchasing land and are creating hundreds of communities that span from Weiser to Rexburg, from Coeur d’Alene to Idaho Falls.
Homeowner associations (HOAs) are also booming in Idaho. HOAs are corporations that are formed by the real estate developers designed to protect the property value in a given community. The concept is for each homeowner to pay a fee each month in exchange for common services or shared amenities. These amenities enhance their quality of life, such as having a pool and its maintenance or winter snow removal.
The HOA is run as a non-profit “membership” that is staffed with by Board of homeowners through an election process. Board members are voted in by a majority vote and do not receive payment for their service. The Board represents the voice of all property owners and enforces a set of rules, often written by the developer, which are called the covenants, conditions and restrictions (CCRs) with the goal of improving your home’s value.
The most common CCRs are as follows:
- Restrictions on where to park boats and RVs.
- Proper maintenance of the home’s front lawn and landscaping, including the height of landscaping.
- Consistent use of paint color, siding and roofing materials.
- Conduct in common areas.
- Restrictions on the number and sometimes the type of animals you are allowed to keep as pets.
- Guidelines about how to display signs and flags.
The purpose of these rules is to create a standard for the external appearance of the properties in a given community, so that the property value of everyone’s home is maintained. One home with a derelict appearance can have a negative impact on the surrounding properties and make resale more difficult. According to the Idaho Real Estate Association that one house could result in as much as a 15% decrease of your home’s value. Thus, HOAs protect your investment in the property. An added benefit is that they protect you from having to deal with confrontation when neighbors don’t comply.
For more information about how homeowner’s associations in Idaho can protect the value of your home, please contact MGM Association Management (208) 846-9189 or visit http://www.gomgm.com.