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Are You Investing in a Planned Community?

Flower Mound Planned Community Homes Being Constructed When the opportunity arrives to buy Flower Mound investment property, one of the imperative choices you will make is opting for a property in an established neighborhood or a home in a common interest community. There are a wide range of different kinds of neighborhoods, some with owner’s associations (commonly known as HOAs), others without. Yet, a master-planned community is unique from your usual residential neighborhood, even those that may have an owners association.

To realize whether investing in a planned community is right for you, you need first to determine what makes a master-planned community so different, as well as the pros and cons of buying one.

The Master-Planned Community

Maybe the main thing to understand about master-planned communities is that they are less like residential neighborhoods or suburbs and more like little self-contained cities. Lots of planned communities are quite huge and incorporate commercial districts, schools, and private recreational amenities. Many planned communities offer a variety of shops and restaurants and strolling trails, municipal pools, and even golf courses – all located at a convenient distance from the community’s residences.

Advantages of Planned Communities

One of the significant advantages of investing in a rental property in a planned community is the location. Individuals acquire in planned communities in large part due to how close and accessible everything is. Walking or biking to jobs, shopping centers, and restaurants can be an enticing prospect.

The amenities that many planned communities offer are another significant advantage. Numerous tenants want the idea of living a lifestyle that includes access to recreational opportunities – particularly if the amenities are only for the use of the residents. These amenities may provide possibilities for socializing than a usual neighborhood.

Another major benefit of a planned community that investors might like is that most are geared toward protecting your property values. In several planned communities, the common areas are well-maintained, and some even offer front yard maintenance for residences. This can help keep your property values high, even if the rental market isn’t functioning well elsewhere. Planned communities also tend to offer more security, including gates and security patrols. This can be very appealing for many tenants.

Potential Drawbacks

In contrast, all that upkeep and security comes with very strict rules, which other Flower Mound property managers and tenants may not like. Property maintenance will be a much higher priority in a planned community than in a more typical residential neighborhood, and you will have less independence to pick landscaping styles, paint colors, and even if and how to decorate the home for holidays. You and your renters may need to get permission prior to taking on any of these exercises.

Another potential drawback is that there tends to be less privacy in a planned community. Houses are often built very close together, which can strain relations with neighbors. There is also a high rate of people doing activities outdoors, so crowding is always a possibility. Some tenants may not like being around people all the time.

At last, the downside to all the extra upkeep and great amenities you get in a planned community is that it all costs money. Depending on the community, property owners may be expected to pay extra fees that range from several hundred to thousands of dollars each year. Depending on the property you purchase, you may even have an obligation to pay assessments to two or more sub-associations along with the master association. These assessments may also change as the community grows, maintenance becomes more expensive, or as reserve amounts are needed. As an investor, you must include these extra fees into your calculations before you buy in a planned community.

In the end, the decision to acquire in a master-planned community is all yours. Because no two scenarios are the same, where you want to buy an investment property and what type of tenant you’d prefer to work with may factor strongly into your decision.


If you need assistance planning your next property investment, consider giving Real Property Management Lakeview a call. Our rental market experts can deliver market assessments and tools that can make finding and choosing your next investment property easier. You can contact us online or call 940-323-0505.

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