Are HOAs Inherently A Bad Thing?

To begin, we are launching a new video series in 2026, to coincide with our blog posts. Please be sure to catch these videos on our Facebook, and Instagram pages. The corresponding video for this blog is already uploaded on our Facebook pages!

Now, let's explore the topic at hand: Are HOAs Inherently A Bad Thing?

Our answer is no! An HOA is an entity, although not a living, breathing entity. Human beings make up homeowners associations, and their boards of directors. In addition, the same is true of the management companies, like IMS. Human beings have the tendency to complicate situations, and for various reasons. The bottom line is, if a "good" board is present, which in our opinion is defined as the elected, representative body, working in unity and unison for the best positioning of the community, that is 50% of the battle. Additionally, if there is a "good" management company in partnership, defined as a company with a "do the next right thing philosophy, like IMS, that is the other 50% of the battle.

A good or great board working with a good or great management company is obviously the ideal situation for any HOA. Although this can be somewhat rare, this should be what any association, their board, and their management partner should strive to be. However, remember that as humans, we are flawed, and in many cases, complicate situations.

There are many negative out there, especially on social media. In our experience, many of those folks have had negative experiences with HOA ownership. And remember, our perceptions are our realities.

The bottom line is, there is a great amount of due diligence which should be utilized before purchasing any asset. This is even more true if one is purchasing an HOA asset, as there are so many moving parts. There are regular dues, special assessments, ridiculous insurance costs, litigation, which is especially prevalent in multifamily HOAs, the oversaturated rental market, the oversaturated real estate market, living in a coastal market, where hurricanes and tropical storms are prevalent, etc. Most importantly, as we always discuss with our many rental partners, "how much cash are you bringing down on your purchase?" Cash is king, and, especially in a market such as Myrtle Beach, if the buyer is not bringing a hefty amount of cash down, and the buyer plans on owning a rental unit, that is a difficult proposition currently.

In our experience, for many who have negative opinions of HOAs, financial struggles are many times the root cause of their negative opinions. However, this is not to say that there are not ample situations where current and former association homeowners have legitimate reasons for their negative feelings. While we have encountered situations with our new associations where homeowners and board members bring unfortunate situations with them to our management, the fact remains that financial challenges with homeowners who own rental properties are root causes of much dissatisfaction.

Moreover, there is a growing trend in the publishing of videos on YouTube, where people point out their challenges in living in HOA properties. There are scathing examples of actions perpetrated by board members, management companies, and homeowners, which cause a multitude of challenges and problems for all parties involved.

To reiterate the simple truth of this matter, it is our opinion that HOAs are not inherently a bad thing. There is good and bad in everything, which is the perception and opinion of the person. Due diligence and caution should be exercised when making any purchase, especially in an association property, and for the aforementioned reasons.

If you are a board member, and you are dissatisfied with your current management company partner, while we may not be able to solve all of your challenges, we can certainly assist you in offering you a partnership with the number one property management company in the area. Please feel free to visit us at integritymgmtsystems.com, or call us at our corporate office at (888) 810-9184.