HOA Detective™ | July 15, 2025: During the Q&A session after one of CIDA’s due diligence presentations – whether we’re briefing Realtors, prospective buyers, or HOA board members – someone inevitably asks:
“Do you own a condo, Detective?”
The answer is always the same, and has been for nearly two decades: No, I don’t own a condominium.
But not for the reason people expect.
The assumption is usually that I avoid HOAs because I’ve seen too much. And while there’s a little truth to that, the real reason is more practical: If I owned property within an HOA, I would feel obligated to serve on the Board of Directors (BOD). Since I simply don’t have the bandwidth for that kind of commitment, not when I spend 12 hours a day performing deep forensic analysis of dozens of HOAs for clients across the country.
So, I abstain. But if I ever did buy into a common interest development – whether a townhome, condo, or planned unit development (PUD) – my strategy would be clear: I’d look for the simplest HOA I could find. Because when it comes to HOA success, there’s one rule that outperforms the rest: Keep It Simple, Stupid.
The K.I.S.S. HOA = Success: The K.I.S.S. acronym originated with U.S. Navy engineers and has been embraced across many industries and society. It stands for “Keep It Simple, Stupid,” and it’s a reminder that systems work best when they are designed with simplicity and clarity in mind. Nowhere is this truer than in HOAs.
The most successful homeowner associations I’ve encountered in 20 years of reserve study and governance analysis aren’t the ones with glossy websites or fancy amenities. They’re the ones with:
- Clean, predictable budgets.
- Limited shared infrastructure.
- Clear rules that are easy to enforce.
- Competent but low-drama board leadership.
- A small, straightforward menu of common area responsibilities.
These HOAs don’t have elaborate architectural review committees or multi-tiered maintenance hierarchies. They aren’t trying to be country clubs or mini-municipalities. Instead, they operate like well-run businesses with a single goal:
Protect the common interest of the vested owners with the least friction possible, while maintaining high property values.
What does a “K.I.S.S. HOA” look like?
- Fewest number of amenities. Eliminating that swimming pool that 90% of the owners never use means no pool heater, no liability insurance rider, no weekly testing for water quality, no lifeguard scheduling, and no costly repairs when the pump burns out.
- Few floor levels above ground may mean no mid or high-rise condo in your future, but it also means no elevator, and that means no state inspections, no five-figure repair bills, and no vendor lock-in.
- Straightforward maintenance. A community with detached homes or townhomes where each owner handles their own roof and exterior will have far fewer reserve obligations than a stacked flat condominium where the HOA is responsible for everything from the slab to the roofline.
- Clear boundaries of responsibility. The simpler the maintenance map, the easier it is for owners and the BOD to agree on who pays for what. When every gray area is eliminated, disputes decline and compliance improves.
- Uncomplicated legal documents. HOAs with well-written, plain-English governing documents – and no hidden traps or over-engineered rules – tend to experience better owner engagement and fewer legal headaches.
- Small BOD, less drama. Boards with three to five directors who serve short terms and meet quarterly tend to attract pragmatic volunteers. When the job is manageable, good people say yes.
In short, simplicity begets transparency, transparency begets trust, and trust keeps the entire operation functional. You don’t need ten committees and a high-priced manager to run a successful HOA – you need a clean playbook and people willing to follow it.
The Complex HOA: Contrast the K.I.S.S. HOA with the Complex HOA:
- Multiple elevators and shared garages.
- Fitness centers, saunas, guest suites, pet washing stations and wine lockers.
- Concierge service – a form of high-priced baby-sitting that subsidizes the underpaid Manco’s bottom line.
- Intricate developer created mixed-use overlays, commercial units, or hotel components.
- 25-page architectural guidelines and six-part application forms.
- 40-pages of Rules & Regulations – don’t need that kind of BS in your life!
Each of these features might seem attractive at first glance, but they come at a price – not just in dollars, but in BOD burnout, vendor predation risk, governance confusion, and owner dissatisfaction and little peace of mind.
In the overly complicated HOA even routine maintenance becomes bureaucratic. Disputes become legal battles. Budgeting turns into crystal ball forecasting. The entire system becomes brittle – and expensive. Major decisions can and often require legal counsel to minimize liability for everyone involved in the decision-making process.
The K.I.S.S. HOA: So, what would the HOA Detective™ buy? A townhome in a development with fewer than 50 homes. Each home has its own roof and driveway. The HOA is responsible only for a small landscaped greenbelt, a monument sign, and a short stretch of private road.
- The budget is under $250,000/year,
- The reserve study isn’t the size of thee NYC phone book.
- The BOD only meets 4 to 6 times a year.
- The governing documents aren’t so complex it takes an advanced law degree to decipher the meaning and intent.
In Other Words: Low overhead, low risk, and low drama. If that sounds boring, good. In the HOA world, boring is beautiful. Buying into an HOA means buying into a shared financial, legal, and social contract. The more complex that contract, the more opportunities for dysfunction, mismanagement, and conflict.
When evaluating a prospective HOA, don’t be dazzled by amenities or marketing.
Ask Yourself: Does this HOA qualify as a K.I.S.S HOA? If the answer is “very much so,” then you just might have found the rarest of gems: A successful HOA that follows the golden rule. Find yourself a K.I.S.S. HOA and you’ll sleep better at night.
Because You’re Buying More Than a Home!
