In Charlotte, approximately 5% of the county’s single-family housing is owned by Wall Street investment firms, according to WCNC News. That may seem like a small percentage, but the trend has been picking up in recent years and looks set to continue. But another reason the number isn’t higher could be due to homeowners’ associations, or HOAs.
In Charlotte, HOAs play an important role in keeping neighborhoods safe, community-oriented, and in the hands of the people who actually live there. Communities run by HOAs are proving to be an important buffer against Wall Street investors that are driving property out of reach of first-time homebuyers. They’re keeping the focus on the local residents and ensuring that they get value out of their properties, regardless of their income bracket.
The Benefits Of HOAs
Being a member of an HOA provides homeowners with a wide range of benefits. HOAs create a sense of community in neighborhoods in all sorts of ways. They do an excellent job of maintaining public amenities, so that community spaces look good and are safe for kids to play in. Not only do well-maintained parks provide great spaces for neighborhood kids to play, but they also make a neighborhood more attractive to buyers. In addition, often organize community events where you can get to know your neighbors. They also provide a platform to bring neighborhoods together to create a sense of community pride. All this works together to create a community feeling, as opposed to a neighborhood made up of several isolated houses.
More practically, HOAs also make neighborhoods more pleasant places to live. Their rules and regulations deter people from blaring music at 3am or parking in front of your driveway. And if you are faced with this kind of nuisance, you have recourse to deal with the issue in a civilized way through the HOA. Rather than calling the police or ending up in a standoff with your neighbors, the HOA can step in to mediate conflicts.
The HOA also provides an added layer of support when dealing with municipal issues. If there is a plumbing or electricity problem being faced by many households, the HOA can provide backup when making an inquiry with the city or service provider. Plus, HOAs ensure that homes and common areas are consistently taken care of, ensuring that the property value of your home is maintained.
HOA Management
However, not all HOAs are equal. HOAs that are partnered with management services can do more for their communities with the help of trusted management professionals. HOA management services can provide legal expertise and add an extra layer of support in various areas. They also provide valuable connections with vendors such as landscaping, maintenance, law enforcement, and condominium building management. In order to run an HOA that really serves the community as well as its board members, management services are essential.
For many homeowners, the key benefit of an HOA is their role in maintaining or increasing property values over time. But in order to do this, good management is essential. In some HOAs, the board of directors assumes management responsibilities, while others hire management services. For prospective buyers, it can be difficult to know whether an HOA in a particular community is well-managed or not. Whether management is the responsibility of the board or not, one clue to a well-run HOA is a strong management team made up of diverse members with a clear vision of their objectives. Other indicators to look out for are a clear budget plan, decision-making based on research, and successful communication.
What HOAs Have Done In Charlotte
In many areas of Charlotte, Wall Street firms are buying up homes and turning them into rentals, often subdividing them into smaller apartments. This is becoming a problem for many aspiring homeowners, as it is precisely in affordable areas where first-time buyers want to be where investment firms are gobbling up homes. As firms are willing to pay over asking price and in cash, they easily outbid first time homebuyers who are finding it increasingly difficult to land properties after making an offer. Many prospective buyers in Charlotte are at their wits end as they continue to search for available properties and make offers, to no avail.
However, areas in Charlotte covered by HOAs can breathe a sigh of relief, as their regulations do not permit subdividing properties and renting them. These areas are the most protected from investors looking to buy up affordable homes and turn them into cheap subdivided rentals. Neighborhoods not covered by such regulations are more vulnerable to being bought up by Wall Street firms. Prospective homeowners would thus do well to look in areas covered by HOAs. Such areas will prove much more friendly to prospective buyers planning to live in their new property, as they prefer to keep homes in the hands of people who live in them.
This article appears in Jan 1 – Dec 31, 2022.
