Houses in HOA communities are worth more than homes that don't belong to a community association. On average, an HOA home value is at least 4% higher than a comparable, non-HOA property.
One reason for this is that community associations enforce rules to beautify and protect property values throughout the neighborhood. These regulations can result in bigger sales when members move away.
What are some of the rules HOAs enforce, and how can they increase property values for homeowners and real estate investors? Here are the top five ways HOAs can preserve home values in your community.
1. Solar Panels
Texas laws prevent HOAs from prohibiting solar panel systems on homes. There are a few reasons for this, one of which is that solar panels are a boon for current homeowners, future buyers, and the whole neighborhood.
Solar panels improve home values for current owners through energy cost savings. Meanwhile, future buyers will be more willing to pay top dollar for homes with solar systems, boosting values throughout the community.
2. Rental Restrictions
In Texas, it is generally legal for HOAs to impose restrictions on leasing activities. In other words, the HOA may ban homeowners from renting out their homes on a long-term basis and, sometimes, as vacation rentals.
Not all leased properties bring down community home values. However, emerging data shows that short-term rentals, in particular, can reduce the quality of life in a neighborhood, which may drive down area demand.
3. Drought-Resistant Landscaping
Though HOAs can regulate their appearance, Houston, Texas HOAs can't prohibit drought-resistant landscaping. And that is a good thing because this type of landscaping can greatly improve home values.
Drought-resistant landscaping looks polished during all seasons and in all weathers. Plus, they are easier to clean and maintain, making them ideal landscaping solutions for prospective homebuyers.
4. Trash Regulations
It is perfectly legal for HOAs to enforce rules around trash can placement and trash receptacles in Houston, Texas communities. The aim of trash regulations is to make communities cleaner, healthier, and more beautiful.
Making rules around trash disposal can also impact home values in multiple ways. For example, an older study found that home prices can decline by 18% to 24% when trash contaminates community groundwater sources.
5. Uniform Fencing
Texas Property Code 202.0003(a) makes it legal for Houston HOAs to enforce restrictions on home fencing. They may mandate fences for all homes, as well as fencing color, material, and maintenance. This can be great for home value.
Fencing can increase a house's value in many ways. Namely, they can enhance curb appeal and improve privacy and security. Moreover, uniform fencing throughout the community can boost home values for the whole neighborhood.
Boost HOA Home Value With Association Management Services
One of the biggest benefits of living in a community with an HOA is higher property values. Rules regulating the use of solar panels, rentals, landscaping, trash, and fencing make these neighborhoods healthier, safer places to live.
Want to boost your HOA home value even more? Hiring an HOA management company like Property Management Inc. Bayou City can help. Contact us to learn more about our services and get started today!
