Over 60% of newly built homes in Arizona are governed by a homeowners association — and in the Phoenix Metro, that number climbs even higher. HOAs are simply part of the landscape here. The communities in Chandler, Gilbert, Scottsdale, Queen Creek, and across the East Valley are loaded with them.
But here’s what I’ve learned after 22+ years and 500+ transactions in this market: most buyers don’t review their HOA documents carefully enough before they commit. They focus on the home — the countertops, the layout, the backyard — and treat the HOA packet like fine print. That can be a costly mistake.
If you’re buying in Phoenix and the home you’re considering sits in an HOA community, here’s everything you need to know before you sign.
What Is an HOA and Why Does It Exist?
A homeowners association (HOA) is a governing body for a planned residential community. It maintains shared spaces — common areas, pools, parks, landscaping — and enforces a set of rules and restrictions that all homeowners agree to follow when they purchase.
HOAs are funded by monthly or quarterly dues paid by residents. In exchange, the association maintains community aesthetics, handles common area upkeep, and in some communities, covers certain utilities or insurance.
In Phoenix, HOAs are particularly common because so much of the housing stock is relatively new development in master-planned communities. The infrastructure — clubhouses, pools, trails, parks — requires ongoing maintenance, and that maintenance is funded through your dues.
Not all HOAs are the same. Some are highly restrictive and professionally managed. Others are loose, low-cost, and minimally involved. Before you buy in any HOA community, you need to understand exactly which kind you’re dealing with.
The CC&Rs: The Document That Actually Governs Your Home
The most important document in any HOA community is the Declaration of Covenants, Conditions, and Restrictions — commonly called the CC&Rs. This is the governing document that tells you exactly what the HOA can and cannot require of you as a homeowner.
In Arizona, sellers are required to deliver HOA documents — including the CC&Rs — to the buyer. You then have a review period to read the documents and cancel the contract if anything is unacceptable. Don’t skip this window.
Here are the specific things I tell every one of my buyers to look for when reviewing CC&Rs:
1. Rental Restrictions and Short-Term Rental Rules
This is increasingly critical in today’s market. Many Phoenix-area HOAs have tightened restrictions on short-term rentals (Airbnb, VRBO) and in some cases have completely prohibited them. If you’re buying a property with any intention of renting it out — even occasionally — you need to know this upfront.
Some CC&Rs also restrict long-term rentals: minimum lease terms, limits on the percentage of rental properties in the community, and prior HOA approval requirements.
Rental restrictions are one of the most common post-purchase surprises I see buyers encounter. Review this section carefully.
2. Exterior Modification Rules
Can you paint your front door a different color? Add a storage shed? Install solar panels? Put up a basketball hoop? Plant different landscaping?
In many Phoenix HOA communities, the answer to all of these questions is: only with prior approval from an architectural review committee. Some associations are flexible. Others will send you a violation notice for a patio umbrella that’s the wrong color.
If you have strong preferences about how you want to personalize your home — or if you’re planning specific improvements — review the architectural guidelines in detail before you commit.
3. Pet Restrictions
HOA pet policies vary widely. Some communities restrict breeds, limit the number of pets, or prohibit certain animals entirely. If you have dogs, check the weight limits and breed restrictions. Some communities explicitly prohibit certain breeds by name — a list that sometimes includes popular breeds many buyers don’t expect to find on there.
4. Parking and Vehicle Rules
In Phoenix, this is one of the most common sources of HOA friction. Many communities prohibit RVs, boats, or oversized vehicles from being parked in driveways or on the street. Work trucks, cargo vans, and commercial vehicles are sometimes restricted from overnight street parking.
If you work a trade, have a recreational vehicle, or own any non-standard vehicles, read the parking rules before you fall in love with a home.
5. Leasing and Resale Restrictions
Some HOAs have right-of-first-refusal clauses, minimum ownership periods before you can sell, or other transfer restrictions. While less common, they do exist and can affect your flexibility as an owner.
HOA Financials: What to Look for in the Reserve Fund
The CC&Rs tell you the rules. The financials tell you the health of the association. Both matter.
When reviewing HOA documents, you’ll receive financial disclosures including the association’s current budget and reserve fund status. Here’s what those numbers actually mean:
The Reserve Fund
The reserve fund is the HOA’s savings account for major capital expenditures — roof replacement on common buildings, pool resurfacing, parking lot repaving, HVAC systems in common areas. A well-funded reserve means the association has been planning ahead. An underfunded reserve is a warning sign.
In Arizona, HOAs are required to conduct periodic reserve studies that estimate the cost of future repairs and whether current contributions are adequate. Ask to see this study if it’s available.
What’s a red flag? A reserve fund that’s less than 70% funded is a yellow flag. Less than 50% funded is a red one. An underfunded reserve often leads to special assessments — one-time charges levied against all homeowners to cover unexpected expenses.
Special Assessments
Ask whether the HOA has issued any special assessments in the past three to five years — and whether any are being planned. A history of special assessments can indicate chronic underfunding or deferred maintenance issues.
Pending Litigation
HOA documents should disclose any pending lawsuits involving the association. Litigation can drain reserves, affect community values, and in some cases, complicate your financing.
HOA Fees in Phoenix: What to Expect
HOA fees in the Phoenix Metro vary significantly based on community size, amenities, and what the association covers. Here’s a general breakdown:
- Low-amenity neighborhoods: $50–$150/month — basic upkeep of common areas, CC&R enforcement
- Mid-level communities with a pool and park: $150–$300/month
- Full-amenity master-planned communities (multiple pools, fitness center, trails, events): $300–$600+/month
- High-end gated communities: $500–$1,000+/month
These fees are in addition to your mortgage, property taxes, and homeowners insurance — and they’re non-negotiable. They’re also subject to increase over time as the association’s costs rise.
When I’m helping a buyer evaluate a home in an HOA community, I factor the monthly dues directly into the total monthly housing cost. A home that looks affordable at the mortgage payment alone can feel very different once you add $400/month in HOA fees.
How I Help My Buyers Navigate HOA Communities
In Arizona, you have a review window after the HOA documents are delivered. I work with my buyers during this window to go through the key provisions — the restrictions most likely to affect your specific situation.
I also help buyers identify concerns they might not think to look for. Not every buyer asks about rental restrictions. Not every buyer thinks to check the reserve fund. My job is to make sure nothing catches you by surprise.
And if we discover something in the HOA documents that’s a genuine dealbreaker — a short-term rental prohibition, an underfunded reserve, or a special assessment on the horizon — I help you make a clear-eyed decision about whether to proceed, negotiate, or walk away. That’s not pressure. That’s information. And you deserve both.
Common HOA Mistakes Phoenix Buyers Make
After helping hundreds of buyers across the Valley, here are the HOA mistakes I see most often:
1. Not reading the CC&Rs. They arrive as a thick packet and buyers assume everything is standard. It isn’t.
2. Ignoring the reserve fund. A home can be beautiful and the community well-kept today — but if the reserve is underfunded, a special assessment could be coming.
3. Assuming all communities allow rentals. If short-term or long-term rental income is part of your plan, verify this before going under contract. Not after.
4. Underestimating total monthly costs. HOA dues are a fixed expense. Model them into your budget before you commit.
5. Skipping the financial disclosures. The budget, reserve study, and pending litigation disclosures tell you things no home tour can.
The Bottom Line on HOAs in Phoenix
HOAs are a normal part of life in the Phoenix Metro, and they’re not inherently good or bad. Many of the Valley’s most desirable communities are HOA communities — and for good reason. The shared amenities, maintained common areas, and community standards are part of what makes those neighborhoods so attractive.
The key is knowing what you’re buying into before you commit. Review the CC&Rs. Examine the financials. Ask about special assessments. Understand the rental restrictions if they apply to you. And don’t treat the document review window as a formality.
If you’re looking at homes in Phoenix, Scottsdale, Chandler, Gilbert, or Queen Creek and have questions about specific HOA communities, I’m happy to help you think through what to watch for.
Call Mike at (480) 201-3700 or visit mikecaruso.com to start a conversation.
Mike Caruso is a Phoenix Metro real estate agent with 22+ years of experience and 500+ homes sold. He’s a solo agent with HomeSmart Elite in Scottsdale, AZ — which means when you call, you get Mike, not an assistant.
