Pros & Cons of Investing in a Property with an HOA

Pros & Cons of Investing in a Property with an HOA


The fees paid to a Homeowners Association generally go towards services like security, landscaping, and grounds maintenance.  

HOAs have rules to prevent property neglect which would lead to neighborhood decline.  This helps maintain the value of your Rental Property.


HOAs can limit your Properties’ Rental Potential by capping the amount of properties on site that are rentals, or having strict requirements for applicants.  Others may have a minimum rental lease period or minimum years of ownership prior to renting.

The cost of a major repair or replacement would be passed along to all owners in the form of a special assessment.  Each owner would be charged an additional fee per month to cover this cost.  This would be in addition to the normal monthly HOA dues.  For example, while Landscaping may be included in your HOA fees, the removal of a dangerous tree typically is not and would require a special assessment. 

If you are a potential buyer, be sure to do your homework regarding the HOA.  Speak to current owners about how well the HOA manages the community as well as community funds.  Avoid older properties because there may be major maintenance costs down the road not covered by the HOA.  If you have any questions about a potential rental property purchase, give us a call and we would be happy to assist you.


Dave Sigler, MPM RMPC

Owner/Broker Vintage Real Estate Services

David Sigler is a Florida native who grew up in Fort Lauderdale Florida. He attended the University of Central Florida where he received his bachelor’s degree in Business Administration. David has since become a licensed General Contractor & Real Estate Broker. He has been active in Florida real estate and construction for over 15 years. During the Great Recession he was forced to refocus his ambitions and landed on property management. Starting with a handful of homes that could not be sold, he grew his portfolio and eventually bought the brokerage. With his experience, knowledge, and resources, his company prides themselves on successful turn-key residential investment solutions. He now manages hundreds of homes covering 5 counties and his construction company provides maintenance services to his management company as well as other local managers. David is an active member of the National Association Residential Property Managers and has served on the Florida State Board for over 6 years in many different roles; most recently as the NARPM Florida Chapter President (2019). Active in the GTR community, he has served on the property management subcommittee for over 4 years and recently as chair of the group. He is also active in local and state legislation that affects the property management industry. His unique understanding and perspective of property management and its associated maintenance has provided him with numerous public speaking opportunities. Outside of work, not only is he an avid outdoors man and a board member for several local Non-Profit organizations, but first and foremost a Father and Husband.

Director of Property Management Committee for Greater Tampa Realtors Association
2019 NARPM State President