What do Miami homeowners associations do, and how can they protect—or hurt—your property? Individuals thinking about buying a home or investing in real estate in South Florida need to educate themselves on homeowners associations and their potential impact on property use, the restrictions they can implement and the costs they can add.

What is a Homeowners Association?

Miami homeowners associations (HOAs) manage properties and buildings in residential subdivisions.

They can be found in various forms governing planned unit developments, single family homes, townhouse projects and condominiums. Homeowners associations in Miami are created by real estate developers (normally as corporations), with control handed off to individual owners after a certain percentage of units are sold. An HOA or condominium association collects fees for managing and maintaining common property, handles accounting for the community and sets rules.

In Miami there are at least 550 homeowners associations. A further list of local associations and their contact details can be found on the Miami-Dade County website. Also, if you ’re considering building your own development you’ll find the registration application for homeowners associations with the Department of Planning and Zoning.

Unfortunately, while Miami homeowners associations offer many valuable benefits to Florida homeowners, they also have a rather notorious reputation as well.

The Pros and Cons of Homeowners Associations

Before you buy a property in Miami-Dade County, be aware of the pros and cons of various associations.

The Pros

1. Regulate exterior maintenance and appearance to keep up property values
2. Often screen buyers and renters
3. Provide maintenance of common areas
4. Manage issues with problematic residents
5. Individuals have voting rights and more control over factors that dictate property values

The Cons

1. Most charge fees which can increase the cost of homeownership
2. Can levy hefty special assessments on owners for thousands of dollars
3. Can levy tax liens against properties and foreclose for non-payment
4. Can restrict the resale and renting of units
5. Potential for misuse of funds and conflicts of interest by board members

Is Buying in an Association Right For You?

Buying a property in a Miami homeowners association is really a personal choice that depends on your finances, your desire for freedom of expression and your flexibility.

Ask yourself:

• Do you intend to live in or rent out your property?
• Are you happy with the exterior color, or would you want more artistic control?
• Could you have issues with noise complaints?
• Do you prefer to have more control over your finances, or let someone else deal with all of the hassle of maintenance?
• Are you a people person?
• Do you have substantial liquid cash reserves to deal with increased financial demands?

The good news is that Miami homeowners association rules vary, and chances are you can find a great fit. Just make sure that you read through the rules prior to actually signing the closing documents on any property you buy.