The Difference Between POA, HOA & COA
Many individuals struggle with assessing whether they want to work with any form of HOA, POA, or COA when they are trying to find a new place to live. Before signing any contract where the community you will be living in has any form of HOA, POA, or COA, it is important to have a clear understanding of what these three associations are for and how they operate. This way, you can avoid unpleasant situations where you financially struggle due to a lack of knowledge of these associations. To learn more about the differences between a POA, HOA & COA, review the information below:
What Is a POA?
A Property Owner’s Association consists of a governing body including both HOAs and COAs. The primary purpose of a POA is to be a supportive body to the other organizations. POA fees are combined with HOA or COA fees for residents whose community is affiliated with a POA. A POA is beneficial to residents because it provides legislative, networking, and educational benefits to property owners. That said, a POA is not regulated the same as an HOA or COA. Members are not only homeowners but also have the potential to be business property managers as well.
What Is an HOA?
HOA stands for Homeowner’s Association and is for homeowners who own both lots and homes. It essentially governs and manages regulations for a particular residential community. Aside from that, it also manages and maintains common recreational areas including playgrounds or pools. Membership can be required depending on the community’s specific guidelines. Homeowners follow regulations that range from landscape upkeep to permitted outdoor decorations. Any alterations to a property must be approved by the Board of Directors. HOAs have an objective of maintaining community standards and upkeep, which makes them able to have a high resale value.
What Is a COA?
A COA is a Condominium Owner’s Association that is made up of condominium owners. Condominium owners own their particular units and also have joint ownership in the building and grounds with other units. Its fees cover common areas and also any building repairs or required maintenance.
Should I Invest in a Community That Has a POA, HOA, or COA?
Many individuals have difficulty deciding whether they should invest in a community that has any form of an organization designed to regulate the community and also charges regular fees. The takeaway is to understand the substantial increase that POAs, HOAs, and COAs offer to property prices in the long-term. Owning a home in a community where the landscaping or common areas has not been maintained can present a poor impression to potential buyers. Also, if one resident in the community has decided to create an exterior design that greatly conflicts with the community’s style, then this can also discourage potential buyers. POAs, HOAs, and COAs can be very valuable to residents and they are not something that should be fretted when purchasing properties.
What Do POAs, HOAs, or COAs Require of Residents?
One of the most important decisions that you will make as a prospective homeowner is whether you are willing to invest in a community with a POA, HOA, or COA. Before making any final decisions, it is vital to have a clear understanding of what your particular community requires in terms of their POA, HOA, or COA agreement. Once you have a clear knowledge of what is expected of you in terms of financial obligations and community regulations, purchasing a property that has a POA, HOA, or COA can be an excellent investment that will provide you with substantial real estate property investment returns in the future.
How Clark Simson Miller Can Help POAs, HOAs, or COAs
Be sure to carefully consider your options when deciding how to manage your community’s POA, HOA or COA. If you fail to carefully research your options, you’re bound to run into major issues in the future. Clark Simson Miller can serve as a source of assistance to your Community Association and how it manages its finances. To learn more about how Clark Simson Miller can help, give us a call at (865) 315-7505 or contact us online.