Last Updated on March 18, 2025 by Tanya Janse van Rensburg
Property governance plays a crucial role in shaping how homeowners interact with their community and manage shared responsibilities.
Owning a home is a significant milestone, but it also comes with responsibilities beyond mortgage payments and maintenance.
Many homeowners are part of a larger community governed by specific rules and regulations.
Property governance refers to the systems in place to maintain shared spaces, resolve disputes, and create a structured living environment.
However, many homeowners do not fully understand how these systems work, which can lead to confusion and frustration.
In this blog, we will share key aspects of property governance that every homeowner should know.
Property governance refers to the legal and operational framework that dictates how residential communities are managed.
It includes rules that homeowners must follow, as well as systems for maintaining common areas, resolving conflicts, and enforcing regulations.
Homeowners' associations (HOAs), management companies, and local ordinances all play a role in property governance.
Knowing how these entities function can help homeowners stay informed and avoid unnecessary disputes.
Each community has different governance structures. Some neighborhoods have strict HOA rules, while others have minimal oversight.
The governing documents, such as covenants, conditions, and restrictions (CC&Rs), outline homeowner obligations.
Reading and understanding these documents is crucial before purchasing a home in a governed community.
Homeowners’ associations (HOAs) and management companies are often confused, but they serve different roles.
HOAs are nonprofit organizations run by elected board members who set community rules, collect fees, and oversee common areas.
They establish guidelines to maintain property values and create a cohesive neighborhood environment.
The board members are usually homeowners themselves, volunteering to enforce community standards.
A management company, on the other hand, is a third-party business hired to handle the daily operations of the HOA. It takes care of administrative duties, such as collecting fees, managing vendors, and maintaining common spaces.
While the HOA sets the rules, the management company carries out enforcement and operational tasks.
Understanding the difference between an HOA vs management company helps homeowners know whom to contact for specific concerns.
Every community governed by an HOA operates based on legal documents.
These include CC&Rs, bylaws, and rules and regulations. CC&Rs outline property restrictions, maintenance requirements, and use of common spaces.
Bylaws establish the framework for how the HOA operates, including voting rights, board member responsibilities, and meeting protocols.
Rules and regulations provide additional guidelines for homeowners, such as parking policies, noise restrictions, and exterior modifications. Reviewing these documents before buying a home is important.
Homeowners should also revisit them periodically to stay updated on any changes.
Understanding these documents prevents misunderstandings and potential fines for violating community rules.
HOAs charge fees to maintain the community. These assessments cover landscaping, security, amenities, and general upkeep.
Monthly or annual dues vary depending on the size of the community and the services provided.
Homeowners who fail to pay fees may face penalties or legal action from the HOA.
Special assessments are additional fees charged when unexpected costs arise.
For example, if a storm damages common areas and reserves are insufficient, the HOA may levy a one-time fee on all homeowners.
Knowing how assessments work helps homeowners budget accordingly and avoid financial surprises.
Disagreements happen in any community, and property governance provides a structured way to resolve them. Common disputes involve noise complaints, property maintenance, and parking issues.
HOAs have enforcement processes, including warnings, fines, and hearings, to address violations fairly.
If a homeowner disagrees with an HOA decision, they can follow an appeals process outlined in the governing documents. In some cases, mediation or legal action may be necessary.
Open communication and understanding of community rules help prevent conflicts from escalating.
Homeowners should also attend HOA meetings to voice concerns and stay informed about changes that affect them.
HOA meetings are where key decisions about the community are made. These meetings allow homeowners to stay informed about financial matters, rule changes, and upcoming projects.
Attendance gives homeowners a chance to voice their opinions, ask questions, and vote on important issues.
Regular participation in HOA meetings helps build a sense of community and allows homeowners to influence governance decisions.
Even if attendance is not required, being present ensures homeowners stay updated and can contribute to discussions that impact their neighborhood.
Homeowners have rights within governed communities. These include the right to access financial records, vote in elections, and dispute decisions through a fair process.
State laws also protect homeowners from unfair practices by HOAs and management companies. Knowing these rights helps homeowners advocate for themselves when necessary.
If an HOA enforces a rule unfairly or mismanages funds, homeowners can challenge decisions through legal channels.
Some states have ombudsman programs or agencies that oversee HOAs and offer dispute-resolution services.
Staying informed about homeowner rights ensures fair treatment within the community.
Understanding property governance is essential for homeowners living in governed communities.
Knowing how HOAs, management companies, and governing documents work helps homeowners make informed decisions and avoid conflicts.
Staying engaged in community matters ensures that rules are applied fairly and that homeowners' voices are heard.
