Tips and advice for first-time homebuyers considering managed communities

When searching for a new home, most buyers focus on essential factors like location, square footage, the number of bedrooms, and, of course, price. They invest time analyzing school districts, commute times, and neighborhood safety. However, one critical factor is often overlooked during this process, particularly for first-time homebuyers: whether to purchase a home in a managed residential community. With one-third of homes in the United States falling under managed community associations, such as homeowners associations (HOAs) or condominiums, and 78% of new housing being constructed within these communities, this decision warrants close attention.

For first-time buyers, choosing between a traditional single-family home and one within a managed community can significantly affect the overall costs, quality of life, and homeownership experience. Because managed communities offer a unique combination of lifestyle, amenities, and convenience, it's typically seen as attractive to those navigating the home-buying process for the first time.

In this article, we’ll help you explore tips and home-buying advice for first-time buyers, with a focus on the benefits and considerations of choosing managed residential communities. Backed by expert insights from FirstService Residential CEO David Diestel, you’ll gain valuable guidance to make informed decisions on your homeownership journey.
 

The rise of managed communities

Over recent decades, American housing trends have shifted, with managed communities like HOAs, condominiums, and master-planned communities becoming the standard choice for many households across the country. This change is mirrored by evolving lifestyle preferences within the homebuyer demographic, as more people are seeking more amenity-rich, low-maintenance living spaces suited to modern needs.

"Over the past few years, people have redefined the meaning of home. Managed communities like high-rises, condos, and master-planned, and the services and amenities they offer have become even more important. These associations are their own neighborhoods and function as hubs to live, entertain, work, and play.."

David Diestel, CEO of FirstService Residential

Advantages first-time buyers should know about managed communities

1. Shared amenities and lifestyle benefits: One benefit of managed communities is the access they provide to exclusive amenities. These neighborhoods often include features such as golf simulators, wine cellars, high-end fitness facilities, and even content creation rooms. Modern developments also include shared spaces like community pools, pickleball courts, dog parks, and clubhouses. “Luxury amenities are here to stay,” Diestel explains, citing examples like cold plunges, golf simulators, and wine-tasting rooms. “We’re also seeing more investments in amenities and services for children, pets, and their owners. We often say that pets are part of the family, and that trend will continue to expand,” he adds.
    
2. Financial benefits: Financial benefits also make managed communities a compelling option for first-time buyers who may have limited budgets saved for home maintenance. Residents often share the costs of maintaining amenities and benefit from bulk purchasing agreements that help reduce utility and service costs. “FirstService Residential has partnered with service providers to save residents an average of $800 per household annually on cable and internet,” says Diestel. Additionally, he mentions how the company is “seeing communities come together to invest in sustainability programs, from installing EV chargers to joining programs for collective energy purchasing. As an example, buildings we manage in New York City are currently saving up to 5%-10% percent on natural gas costs by leveraging the combined energy use of hundreds of properties, vs. using local utilities, to negotiate lower-than-standard rates.”
    
3. Community engagement and social connection: First-time homebuyers may also appreciate the strong sense of community these neighborhoods foster. Many community associations include amenities like pools, gyms, and dog parks, helping residents connect through shared interests. Social events and activities are often organized to bring neighbors together. “We are hearing about a loneliness epidemic impacting America,” Diestel notes. “Community associations make it easier for neighbors to get to know one another, creating neighborhoods where people live, work, and play together.”
    
4. Property value protection: Managed communities provide robust protection for property values. Consistent maintenance standards, architectural controls, and professional management oversight help homes retain their value over time.
   
   “Our goal at FirstService Residential is to help protect property values and enhance the lives of the residents in the communities we manage,” Diestel adds.

Important considerations

When weighing up the decision to move into a managed community, potential homebuyers should assess several factors. For first-time buyers, understanding association fees is crucial. These fees, whether monthly or annual, help fund the maintenance of shared amenities and services, and they are in addition to mortgage payments and must be factored into your budget.

Equally important are guidelines governing the community. These can include maintenance standards, restrictions on exterior modifications, or specific rules around renting out properties. Diestel advises first-time buyers to examine a community’s leadership and organization thoroughly. “A well-run managed community offers more than curb appeal,” he says. “Look for neighborhoods with active leadership, well-maintained common areas, and engaged residents.”

First-time buyers should also prioritize long-term planning. Consider whether the community’s amenities and aesthetics align with your lifestyle, not just today but in the future. Diestel echoes this, pointing out the importance of flexible communities that can evolve and always consider their residents' changing needs.
 

Understanding board member responsibilities

Community associations are governed by volunteer boards whose impact cannot be understated. With 2.5 million board and committee members contributing 98.5 million volunteer hours annually, as mentioned by the Community Association Institute (CAI), these "everyday heroes" play a crucial role in:

• Setting community policies and standards
   
• Managing financial decisions and budgets
   
• Planning for long-term maintenance and improvements
   
• Working with professional management companies
   
• Representing resident interests

The property management partnership

Professional property management companies like FirstService Residential provide essential support to boards and communities through:

• Day-to-day operational management
   
• Financial oversight and planning
   
• Vendor management and contract negotiation
   
• Amenity programming and lifestyle services
   
• Technology implementation for resident services<
   
• Energy and sustainability initiatives

With 18,000 associates across the U.S. and Canada, FirstService Residential has the largest workforce in residential property management—more than any other company in the industry. Our teams live and work in the communities we manage, so we understand the day-to-day realities of association living better than anyone else. This deep local presence, paired with national resources, allows us to support board members and residents effectively, helping that communities run smoothly and homeowners get the most out of their investment.
 

Making your decision: Tips for first-time homebuyers

1. For first-time homebuyers and seasoned individuals alike, choosing the right living environment begins with thorough research. Evaluate your financial and lifestyle goals and weigh the potential benefits of living in a managed community. He also advises homebuyers to balance their long-term personal needs with the operational health of the community.
    
2. Investigate the association’s financial reserves, assess the value of its services, and research any planned developments.
    
3. Consider how well the community’s governance aligns with your expectations. You should also review the association guidelines carefully and investigate the property management company’s reputation. Diestel highlights the importance of selecting a community that adapts to residents’ evolving needs, providing that it remains a desirable option for years to come.

Making your final decision

When choosing between a managed community and a traditional single-family home, there's no universally correct answer. The decision should be based on your personal preferences, lifestyle needs, and financial situation. However, understanding that managed communities now represent a significant portion of the housing market, we recommend seriously considering them in your home-buying journey.

"When you find the right community, that greatly enhances your quality of life."

David Diestel, CEO of FirstService Residential

To learn more about managed communities, you can read more about property types and services by clicking here.

If you're already a board member interested in hiring a professional property management company, contact a member of our team.