Buying a Home or Condo in an HOA in Arizona: What Every Buyer Should Know

By Anjali Patel

HOA’s in Arizona

If you are thinking about buying a home or condominium in Arizona, chances are you will be dealing with a homeowners association (HOA). HOAs play a powerful role in shaping community life. They can help preserve property values and provide shared amenities, but they can also impose strict rules and costly assessments.

As an Arizona HOA lawyer, I regularly advise clients who discover problems with their HOA only after closing. By asking the right questions before you buy and carefully reviewing the governing document (such as the CC&Rs, bylaws, and rules), you can avoid surprises and make an informed purchase.

HOA Assessments and Dues: What Buyers Must Understand

Every HOA requires owners to pay assessments, usually on a monthly or quarterly basis. Before you purchase, ask how dues are billed and whether the association allows autopay. Failure to pay these assessments can lead to foreclosure here in Arizona. It's important to stay on top of these payments and increase payment as the amount goes up to stay current. Just as important, review the history of assessment increases. Frequent big hikes or a pattern of special assessments may signal poor financial management. Ideally, HOAs are periodically raising their assessments to address growing costs in small increments based on the projected budget for the year. 

Special assessments, or one time imposed assessments, are mandatory, and unpaid balances can lead to liens, collections, or even foreclosure. Even if regular dues appear affordable, you must plan for the possibility that the HOA will impose an additional assessment to cover a budget shortfall or emergency repair. When buying into an HOA, always factor in the risk of rising dues and sudden financial obligations. Once you're in the community, make sure to regularly review your ledger for missed payments, inaccuracies or charges.

HOA Reserves and Repairs: Condos in Particular

For condominium buyers, one of the biggest risks is whether the association has planned for major repairs. A responsible condominium should be tracking upcoming expenses and have a plan to pay for them. Look to see if the condo you're buying into has an updated reserve study. Is your Condo HOA saving money each year to cover predictable expenses such as roof replacements, pavement, or plumbing systems or are they keeping assessments low and delaying big repairs. If reserves are inadequate, owners will eventually face surprise assessments that can cost thousands of dollars. 

I have seen associations defer necessary work for years, only to impose substantial special assessments when the problem could no longer be ignored. Some associations end up in dire financial straits where the failure to afford repairs leads to gaps in insurance coverage (see insurance section below),emergency loans, and special assessments.  Reviewing the reserve study and the current reserve balance will tell you whether the HOA is financially prepared or running on empty. For buyers, this step can make the difference between predictable dues and unplanned expenses that disrupt your budget. Once you've bought in the community, it's important to stay on top of these issues as well so you can plan for upcoming expenses.

HOA Insurance Deductibles and Claim History

In condominiums, insurance coverage can be one of the most overlooked but costly issues. Associations typically carry a “master policy” that covers the building, but owners are often responsible for paying the policy’s deductible if a claim involves their unit. HOA deductibles of $10,000 or more are common in Arizona, and owners are sometimes surprised to learn they must cover that amount before their own insurance even applies.

It is also worth asking about the association’s claim history. Frequent claims can indicate deferred maintenance or chronic problems that increase premiums and leave owners footing more of the bill. Understanding these obligations before you buy allows you to plan ahead and evaluate whether the HOA is being run responsibly.

Parking Rules in Arizona HOAs

Parking rules are one of the most common sources of disputes in HOA communities. It is important to think not only about your current situation but also about how you plan to use the property in the future. For example, if your household may include additional drivers in a few years, does the property provide enough parking that complies with the HOA’s rules? Will all vehicles fit in the garage, or are there restrictions on using the driveway or street? What happens when guests stay overnight?

These issues are especially important in communities that strictly regulate overnight parking, commercial vehicles, or larger trucks and SUVs. If there is limited guest parking or the HOA imposes strict limits on where vehicles may be parked, conflicts can arise quickly. Buyers who consider their long-term parking needs will be better prepared to determine whether the HOA’s restrictions fit their lifestyle.

Rental Restrictions in HOAs

If you are considering renting out your home or condominium, either for short-term stays or as a long-term investment property, you need to carefully review the CC&Rs. Many Arizona HOAs prohibit short-term rentals entirely. Others restrict long-term rentals through caps on the number of units that may be rented, minimum lease terms, or additional approval requirements. If you're planning to rent your home, you should familiarize yourself with these rules before proceeding. 

What many buyers do not realize is that, under the CC&Rs, the owner remains contractually obligated to the HOA even when the property is rented out. This means that if a tenant violates the rules, the HOA has the right to pursue you directly. The association may file a lawsuit against you, and because of the fee-shifting provisions in most CC&Rs, the HOA can recover its attorney’s fees and costs from you as the owner. This can quickly turn a tenant’s violation into a very expensive problem.

One way to reduce this risk is to have an attorney review your lease agreement. Key provisions can be added to ensure that tenants understand and comply with HOA rules, and to give you stronger remedies if they do not. Taking these steps before leasing out your property can help you manage liability and avoid costly disputes with the association.

Pet and Animal Restrictions

Pets are often an emotional part of choosing a home, but HOAs may regulate much more than whether you can own a dog or cat. Rules commonly limit the number or size of pets, restrict excessive noise, and prohibit certain types of animals or specific breeds altogether. Associations may also regulate structures associated with pets and animals, such as dog runs, chicken coops, or shade structures.

These issues can be particularly tricky in communities with “view fencing” or short block walls in the backyard. A pet structure that obstructs the view corridor or changes the appearance of the yard may not be permitted. I have seen owners fined and forced to remove structures they believed were harmless, simply because they did not conform to architectural guidelines. Buyers should confirm not only that pets are allowed, but also that the way they plan to house and care for their pets complies with HOA restrictions.

Exterior and Landscaping Rules

Exterior appearance is another area where HOAs exert significant control. Associations often regulate landscaping choices, paint colors, structure height, and additions such as sheds, gazebos, pools, or accessory dwelling units. Some communities will strongly regulate the aesthetics of any changes to your lot such as construction materials, palette, and architectural or landscaping style. Even backyard projects that are not visible from the street may be subject to architectural approval.

Violating these restrictions can result in fines and forced removal of unapproved improvements. The safest approach is to review not only the CC&Rs but also the HOA’s architectural guidelines before you buy. These documents often contain detailed requirements that extend far beyond the general rules and can significantly impact how you use and improve your property. Further, don't assume that just because other similar structures exist in the community, that your planned structure will automatically be allowed. It's always a good idea to consult with an attorney before proceeding with any construction or visual changes to your property.

Community Culture: Reading HOA Meeting Minutes

Beyond the documents themselves, it is important to understand the culture of the community. Reviewing the minutes of recent board meetings can provide valuable insight into whether the association is well-run or plagued by constant conflict.

If the minutes reveal repeated disputes over parking, constant financial shortfalls, or contentious board elections, that may be a sign of ongoing instability. Even the absence of available documents can be telling. Some communities that don't have regular meeting minutes available may be having a hard time getting anything done because of vacancies on the board, management, or lack of engagement from members. On the other hand, organized meetings with clear agendas and thoughtful discussion can indicate a healthy and functional HOA. Paying attention to these signs helps buyers evaluate not only the financial obligations of ownership but also the day-to-day experience of living in the community.

Why Legal Review of HOA Documents Matters

Buying in an HOA is not just a real estate purchase—it is a contractual commitment to the association and every other homeowner in the community. Once you close, the CC&Rs and bylaws are binding legal obligations.

We can provide you with a quick and affordable consult during escrow to review these documents and highlight potential issues. A legal review can identify financial risks, restrictive covenants, and liability concerns before you are locked into ownership. We can also suggest changes to lease agreements or other documents if you plan to rent out the property to address specific concerns when renting.

A small investment in this type of legal advice can prevent costly disputes later and help ensure that your purchase is a good fit for your needs.

Conclusion: Protect Yourself Before You Buy

An HOA can protect your investment—or it can impose restrictions and costs you never anticipated. Before purchasing a home or condo in an HOA in Arizona, take the time to review the CC&Rs, investigate assessments, understand parking and pet rules, and evaluate the community’s culture. We can address some of these issues once you're in the community but it can be expensive uphill battles. So many of my clients tell me they wish they knew to consider these things before buying.

If you are in escrow or preparing to make an offer, I can review your HOA’s governing documents and provide tailored guidance. An affordable consultation at this stage can give you peace of mind and help you make an informed decision. For more information regarding HOA laws, rules and regulations in Arizona click here.