Homeowners associations (HOAs) are common in planned communities, condominiums, and some neighborhoods with single-family homes. These associations are responsible for maintaining the community’s common areas and amenities, and they achieve this through homeowner association fees.
What are HOA fees?
HOA fees are regular payments, typically monthly, that homeowners within an HOA community are required to pay. These fees are used to fund the association’s operations, which include:
- Maintaining common areas: This covers upkeep of landscaping, streets, sidewalks, pools, clubhouses, and other shared spaces.
- Providing amenities: Depending on the community, amenities may include gyms, swimming pools, tennis courts, parks, or security services. HOA fees are used to maintain and operate these amenities.
- Reserves for future projects: HOAs typically set aside a portion of the fees in a reserve fund to pay for major repairs or replacements, such as roof repairs or repaving roads.
- Administrative costs: This covers the expenses of running the HOA, including salaries for staff, legal fees, insurance, and accounting services Therockmops.com/.
How much are HOA fees?
The amount you’ll pay in HOA fees can vary widely depending on several factors:
- Location: HOA fees tend to be higher in desirable locations or communities with extensive amenities.
- Type of property: Condominiums and townhomes generally have higher HOA fees than single-family homes because they share more common areas.
- Amenities offered: Communities with more amenities like pools, gyms, or security will have higher fees to cover their maintenance and operation.
- Financial health of the HOA: If the HOA has a healthy reserve fund, fees may be lower. Conversely, if the association needs to raise funds for repairs, fees may increase.
The national average for HOA fees is estimated to be between $200 and $300 per month, but they can range anywhere from less than $100 to over $1,000 per month.
Things to consider before buying in an HOA community:
- Review the HOA covenants, conditions, and restrictions (CC&Rs): This document outlines the HOA’s rules and regulations, including what is and is not allowed in terms of exterior modifications, landscaping, and pet ownership.
- Ask for a copy of the HOA budget: This will give you a better understanding of how the HOA fees are spent.
- Talk to current residents: Get a sense of the community and how well the HOA is managed by speaking to people who already live there.
Remember: HOA fees are an ongoing expense that should be factored into your budget when considering buying a home in a community with an HOA.