Trying to decide between an HOA community and a non‑HOA neighborhood in McKinney? You are not alone. The choice affects your monthly costs, how you can use and update your home, and even your future resale pool. In this guide, you will learn how HOAs work in Texas, what costs to expect, how rules shape daily life, and how to do smart due diligence in McKinney. Let’s dive in.
HOA basics in McKinney
An HOA is a private association that enforces covenants, collects dues, and manages shared areas and amenities. In McKinney and across Collin County, newer and master‑planned communities often have HOAs. Older infill areas and some rural pockets are more likely to be non‑HOA.
You will also see Municipal Utility Districts, or MUDs, in developing parts of the county. A MUD can add to your property tax burden. Understanding both HOA dues and any special district taxes helps you get a full picture of carrying costs.
How HOAs work in Texas
Texas HOAs operate under recorded covenants, conditions, and restrictions, known as CC&Rs, plus bylaws and rules. These documents run with the land and outline owner obligations, architectural controls, and enforcement processes. State statutes in the Texas Property Code set many requirements for governance, notices, meetings, and homeowner protections.
Associations can levy assessments and, subject to statute and their governing documents, record liens and in many cases pursue foreclosure for unpaid amounts. There are procedural protections and required notices. If you buy in an HOA, plan to review these lien and enforcement provisions during your contract review period.
Sellers typically must disclose HOA membership and provide governing documents and fee information. Many transactions include a resale certificate or document pack prepared by the association or its manager. Buyers often have a set period to review and object before moving forward.
Costs to expect in McKinney
HOA costs vary based on the age of the community, level of amenities, and size of common areas. In the DFW market, dues can be nominal for simple common area upkeep or higher for resort‑style amenities. Focus on the specifics of the community you are considering.
Common cost drivers include:
- Regular assessments for landscaping, pool and amenity upkeep, common‑area utilities, management fees, and reserves.
- Special assessments for major repairs when reserves fall short, such as pool resurfacing or entry monument work.
- Insurance considerations, since the HOA’s master policy covers common elements and sometimes exterior items, while you cover your home and interior per your policy.
- Taxes and special districts like MUDs that can materially affect your effective tax rate, especially in newer developments.
Ask for the current budget, reserve balances, history of dues increases, any recent special assessments, and delinquency data. These indicators help you anticipate future costs.
Lifestyle and rules: what to expect
Most McKinney HOAs use rules to keep a consistent neighborhood look and to manage shared spaces. Typical rules may address:
- Architectural and exterior changes, including paint, fences, and additions
- Yard standards, trash schedules, and landscaping
- Parking of vehicles, RVs, and boats
- Pet rules and leash requirements
- Rental restrictions, including short‑term rental limits
- Noise, signage, and holiday decorations
Benefits of HOA living include maintained common areas, amenities like pools, trails, or playgrounds, and a consistent appearance that many buyers value. Tradeoffs include recurring dues, limits on exterior changes, and the possibility of disputes or special assessments if finances are strained.
Non‑HOA neighborhoods in McKinney
If you prefer more flexibility, non‑HOA areas usually allow broader exterior customization, subject to city codes or any deed restrictions. There are no HOA dues, but you take full responsibility for your property’s upkeep.
Expect a wider range of appearances and maintenance levels across homes. Some buyers love the freedom. Others prefer the uniform look of an HOA. Your choice should reflect what you value day to day and what will appeal to your likely future buyer.
Resale and marketability in McKinney
In general, HOA communities with sound finances and appealing amenities can attract buyers who want convenience and shared spaces. That can help marketability. On the other hand, high dues, recent special assessments, or pending litigation can deter buyers.
Non‑HOA areas attract buyers who want lower monthly costs or more control over the property. The tradeoff is a broader range of neighborhood appearances, which can be a pro or con depending on the buyer pool.
Buyer due diligence checklist
Before you commit, request and review the full HOA package and related records. Focus on:
- CC&Rs, bylaws, and current rules and regulations
- Current budget, recent financials, bank statements, and reserve balances or a reserve study
- Assessment schedule, recent increases, and any special assessments
- Delinquency policy and current delinquency rate
- Pending or recent litigation
- Board meeting minutes for the last 12 months
- Management setup: self‑managed or professional management, plus contact info
- Insurance certificates and what the master policy covers versus your policy
- Architectural review procedures and timelines
- Rental and leasing rules, including any registration requirements
- Community rules on parking, pets, holiday displays, and enforcement penalties
- Amenity map and access expectations
- If the area is still developing, MUD boundaries, planned improvements, and expected tax rate changes
Also search the Collin County Clerk’s records for recorded CC&Rs and plats, and check with the Collin Central Appraisal District for tax and special district information. City of McKinney planning and code enforcement can clarify city‑level rules that apply regardless of HOA status.
Seller tips in McKinney
If you are selling a home in an HOA, a proactive approach reduces friction:
- Order the resale package early so buyers can review on time
- Provide up‑to‑date CC&Rs, rules, budgets, reserve info, and recent meeting minutes
- Resolve open violations or disclose them clearly
- Share any known special assessments, upcoming projects, or policy changes
If you are selling in a non‑HOA area, organize city permits for any major work, provide clear disclosures, and highlight strengths like lot size, flexibility, or proximity to amenities maintained by the city.
Decision framework: HOA vs. no HOA
Use this quick framework to match the choice to your priorities:
- Choose an HOA if you value shared amenities, consistent appearance, and community standards, and are comfortable with dues and rule compliance.
- Choose non‑HOA if you prefer flexibility, lower recurring fees, and full control of maintenance, and are comfortable with a broader range of neighbor property conditions.
Whichever path you choose, the quality of the governing documents and financial health make the biggest difference. Strong reserves, transparent management, and clear rules usually lead to a smoother ownership experience.
Local resources to consult
- Collin County Clerk for recorded CC&Rs and plats
- Collin Central Appraisal District for property taxes and MUD identification
- City of McKinney for planning, zoning, permitting, and code enforcement
- Community Associations Institute for best practices on HOA governance and reserves
- Texas statutes for HOA governance and homeowner rights
Ready to compare specific McKinney neighborhoods and run the numbers on dues, MUDs, and taxes? Reach out to the local team that helps families make confident, well‑informed moves. Let’s get a coffee and talk through your goals with Hunter Realty Group.
FAQs
What is an HOA in McKinney and how common is it?
- An HOA is a private association that enforces deed restrictions and manages common areas; they are common in newer and master‑planned McKinney communities, while older or rural areas are more often non‑HOA.
How much are HOA fees in McKinney?
- Dues vary widely by community and amenities; you should verify the current assessment schedule, recent increases, and any special assessments for the specific neighborhood you are considering.
Can a Texas HOA foreclose for unpaid dues?
- Associations can usually record liens and, subject to state law and their documents, pursue foreclosure after required notices and procedures; review these provisions and obtain title insurance.
What should McKinney sellers disclose about the HOA?
- Sellers typically must disclose HOA membership and provide governing documents, fee details, and a resale certificate or document pack per contract timing and local practice.
Do HOAs affect resale value in McKinney?
- Well‑run HOAs with amenities and sound reserves can support marketability; high dues, special assessments, or litigation can reduce buyer interest.
Are short‑term rentals allowed in McKinney HOAs?
- Many HOAs restrict or prohibit short‑term rentals; confirm rental rules, any caps, and registration requirements in the governing documents before you buy.
What is a MUD and how does it impact costs?
- A Municipal Utility District is a special district that provides infrastructure and services and may add to your property tax rate, which affects overall carrying costs.
