Comprehensive HOA review
Unique insights into the HOA’s financial condition, rules & regulations, such as leasing restrictions, and operational health to help you verify the compatibility of the property with your portfolio without risk
Crucial HOA information is buried in hundreds of pages
There are 400,000 HOAs and they are all different, which makes due diligence challenging.
The process usually involves going through hundreds of pages to find the relevant information about the HOA’s financial condition (fees, expenses, reserves, special assessments), rules and regulations (dozens of leasing restrictions, right of first refusal, pet policy, etc.), and operational health (litigations, foreclosures, defaults, and more).
Unfortunately, missing any of these could force the sale of the property or significantly hurt investment returns.
HOA Review is a key tool for acquisitions
Knowing the Rules and Regulations is essential for ensuring an HOA is consistent with your investment model. There are myriad leasing restrictions that could make a property uninvestable for many investors.
Our Rules and Regulations summary helps you make better investment decisions while also helping your tenants live peacefully in their new homes, not incurring unnecessary fines.
Some HOAs are in great financial condition and have enough reserves for unforeseen expenses, others are stuck in perpetual special assessments and loans. Which one you buy into can completely change your investment returns.
HOA dues are a resource that a homeowner’s association can use to combat obsolescence and safety issues, allowing for a safer and more stable community. Understanding how the dues are distributed gives a long-term perspective of the financial health of your HOA.
Some of the points we cover in the Operational and Financing parts of the HOA Review:
- Is there a master and a sub-HOA?
- Is the HOA professionally managed?
- Are there pending litigations against the HOA?
- What is the level of foreclosures and defaults?
- Do you have to pay extra for Flood Insurance?
- Is the property FHA or VA eligible?
are opportunities to use technology and automation to enhance the
We are constantly tweaking and refining our processes, so we needed a
partner that would go along this journey with us. And InspectHOA is exactly that.