Your Complete Guide on HOA for Condo Owners in Denver, CO

Your Complete Guide on HOA for Condo Owners in Denver, CO

Comprehensive information about HOA for Condo Owners in Denver. Before planning to move to this beautiful capital of Colorado, check the details here first.

If you own a condo or are planning on buying one in Denver then you might be interested in the community, or more precisely the Homeowners Association – HOA. That part of the community its benefits and downsides are something you have to get a hold of before signing any deal, simply to understand whether their terms and conditions match yours. After all, your condo is your living place and life.

HOA for Condo Owners in Denver, CO

To help you better understand the concept of an HOA regardless of where you live, we have summarized the most important points of what the Homeowners Association stands for and how your home benefits from it.

Understanding HOA

A homeowners association or HOA is a formed organization in a subdivision like a planned community or a condominium that is there to improve the residents’ lives. This association is there to make and enforce certain rules that are accepted by the entire community and ensure pleasant living. If you’re buying a condo in Denver and the property is under HOA’s jurisdiction, you should know that you automatically become a member of the association and you are required to pay fees.

 The HOA in Denver is comprised and run by community’s residents and you become a member once you’re an owner of a property under HOA jurisdiction. These associations operate within communities with single-family homes or multiple-unit buildings like condominiums. Every HOA has its members elected and voted for by the community they operate in. The ruling body of HOA is comprised of a board of directors or governors who are there to create, enforce, and oversee the HOA’s rules and regulations.

The Rules and Regulations of HOA

 If you’re interested in the rules and regulations of the HOA within the area you’re buying a condo in, you can find this data in a document called the Declaration of Covenants, Conditions, and Restrictions (CC&Rs). With this document, they impose certain conditions on owners as to how they should look after their properties.

While it varies from one association to another, some HOAs may enforce structural restrictions as to how your property should look like from the outside. This is more precise when it comes to houses as the landscapes and types of fences can be regulated, but when it comes to condos these regulations can be parking, noise restrictions, holiday decorations, pets, outdoor clutter and garbage and the like. In this document, you will also find the penalties that apply for the Denver area for breaking and violating the CC&Rs such as fees, forced compliance, or even litigation.

One of the rules of HOA for condo owners in Denver is to have condo insurance. HOAs usually require you to have a policy to become a part of their organization. However, it is essential to note that your HOA membership fee already covers certain parts of your property, such as:

  • Damage to the roof, walls, stairwells, and elevator.
  • Damage done in the common areas such as the amenities included, like swimming pool, gym, or parking lot.
  • Liability lawsuits.

This being said, you should inform precisely what your HOA master policy covers, as not all are the same. There are three types of HOA policies in Denver for condo owners.

  • Bare walls coverageThis is the minimum coverage policy that leaves it on you to cover everything in your condo, starting from the floor, built-in shelves, and appliances.
  • Single entity coverageThis covers everything the former does but includes fixtures, built-ins, and other property as specified by the policy.
  • All-in coverage is a policy that covers everything included with the unit from walls and floors to windows, units, and fixtures.

However, if you are not getting the most comprehensive policy with your HOA fee, this is not something to worry about since most insurance policies in Denver are already lower than in the other states, as is the cost of living. Plus, having one can be a big bonus if your property is lost or destroyed by a covered event.

                All in all, make sure to get a professional realtor’s help to understand precisely what you’re getting and if what you are paying for is worth it. Also, ask about the “house rules” before buying your condo in Denver. Some HOAs require mandatory membership, so by signing the lease, you become a member; thus, you have to pay the fees, and some are optional, which leaves room for the owners to decide themselves.

The Rules and Regulations of HOA - Condo Building by Luis Quintero

The Advantages and Disadvantages of HOA

 Joining an HOA as a condo owner in Denver can have its advantages as well as disadvantages depending on the situation. Namely, HOAs are formed to provide regulations and guidelines for the community. Overseeing that these regulations and guidelines are respected ensures preserving of the neighborhood peace and wellbeing as well as values. Surely, having rules on cleanliness, condition, and repair can do more good than harm as everyone wants their condominium’s appearance to be at its best.

Additionally, depending on your condominiums in Denver, some HOA management services may include amenities like parking lots for their members, swimming pools, tennis courts, or even party spaces. Also, membership fees include trash collection and snow removal. So, Homeowners Associations are considered a better way to govern the common area, as they are ruled by the people living in it, rather than leaving it to some absent landlord. However, many members point to disadvantages in being part of an HOA. Below we will take a look at both sides.

Advantages of HOAs

  • Setting and enforcing rules created by the community living in the condominium
  • Protecting property values
  • Providing needed services and facilities

Disadvantages of HOAs

  • Restrictive regulations
  • Amateur and inefficient management
  • Mandatory fees, dues, and assessments
Advantages and Disadvantages of HOA

The reason why you as a future condo owner in Denver must look at what HOAs bring to your property is that sometimes this organization can have negative sides. See, a homeowners association is like a small business or nonprofit institution where those operating it are doing it voluntarily. The people in the board of directors may already have a job and family to look after so they may not be up for dealing with complex financial issues or the creation or changing or the existing rules. Sometimes condo owners in Denver find that HOA regulations are too restrictive and their membership fees quite high.

But, consulting with your real estate agent and asking for recommendations can truly help you discover the best condominium community for you and the best HOA that will protect your peace and wellbeing.