I'd have to say that a charcoal burning fire pit is going to smoke up pretty good. You will also get the smell too and with 500 square feet you might get a little smoke inhalation.

Go with propane. It's clean burning and you will have no issues with your HOA bitching at you about smoke or smell. There would also be no cleanup for you either whereas charcoal will require you to maintain your fire pit. Depending on what you get, you can fancy it up to alter the glow. I know of people who have put large chunks of broken tempered glass to sparkle up the flames.

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