If you own or are considering buying property in New Orleans, it is helpful to understand the differences between a Homeowner’s Association (HOA) and Condo Association (CA). Each entity varies in its duties, ownership rights, and regulations. These differences can affect your ability to rent out your property to earn rental income.
Explore the differences between an HOA and Condo Association and what this can mean for your rental properties.
What is an HOA?
An HOA is an organization that sets forth rules, codes, and regulations for homeowners in a subdivision or community. They typically preside over single-family, stand-alone houses. HOAs can be run by the owners of the subdivision or elected board members who own homes in the HOA community.
HOAs ensure that facilities and structures within the community, such as swimming pools, playgrounds, and sidewalks, are maintained. They also enforce agreed-upon rules for the neighborhood. These rules can include elements like what color HOA members can paint their house, where they place their trash bins, and what type of landscaping is allowed.
What is a Condominium Association?
A CA is an entity that sets the rules and regulations for those who own units within an apartment building or condominium. An elected board of directors typically runs CAs, also called co-op boards, who make decisions for the property and maintain commonly owned areas.
Individual unit owners also own common areas like pools, lobbies, or gyms in a condominium. They also share the responsibility of maintaining and repairing common structures, such as roofs, hallways, and elevators. Condominium owners typically elect the board of directors to manage these responsibilities rather than take on the role themselves.
What is the Main Difference Between an HOA and Condo Association?
The main differences between an HOA and CA have to do with ownership rights and scope of responsibility.
- Scope of responsibility
HOAs are in charge of enforcing the HOA’s Covenants, Conditions & Restrictions (CC&R’s) and maintaining the property for the community. They don’t help homeowners make repairs to their homes, but they do notify homeowners in the HOA when a change needs to be made.
CAs are responsible for managing common areas on behalf of the unit owners. The CAs make financial plans for condominium owners and obtain umbrella insurance policies for the property. CAs also make arrangements for common area repairs and maintenance.
- Ownership rights
In a condominium, the unit owners also own the common areas. This means the CA maintains areas with a shared ownership interest for residents. The same is not true for HOAs. Although HOAs help maintain community areas, they do so on behalf of the sub-development owner. Members of an HOA only own their single-family unit.
Renting Property Under a Condo Association
Renting out units in a condominium can be a lucrative decision. However, it is important to work with your CA and satisfy their regulations regarding renting out property under their jurisdiction. Also, hire a property management company that specializes in working with condominium associations. This type of property management company can navigate complex CA regulations and meet all requirements.
Partner With Certain Management
If you plan to rent out condominium property in the New Orleans metro area, work with Certain Management. We specialize in working with CAs to ensure your rental property and agreement are aligned with their standards and regulations.
To learn more about Certain Management’s property management services, call us at (504) 342-2554 and speak with a team member today.
