Are you living in an HOA community? A homeowner's association oversees the community with the goal of keeping the neighborhood looking good and home values high.
This is likely the main reason why 75.5 million Americans live in HOA communities, according to the Foundation for Community Association Research. To enjoy the benefits and amenities of living in such communities, residents pay HOA fees.
Are you wondering if HOA fees are really necessary? Keep reading this property owner's guide to HOA fees in 2024 to find out what they typically cover.
What Are HOA Fees?
HOA fees are the dues you pay as a member of a homeowners association. These are sums of money that homeowners pay for various expenses related to the community.
HOA fee uses include things like common area maintenance, upkeep of the community pool, pickle ball courts, etc. The fees go into the association's operating fund, with some going into a reserve fund.
Residents pay their fees monthly, quarterly, semi-annually, or annually.
Average HOA Fee Costs for 2024
The national average for HOA fees is $170 per month. Fees vary based on location, type of amenities, and size of the homes.
On the high end, HOA dues can be as much as $1,000 per month. The low-end hovers around $150 per month.
What Do HOA Fees Cover?
HOA fees cover the maintenance of common areas. This includes grass cutting, snow removal, putting in and replacing decorative plants, hardscapes, and pool maintenance. If the neighborhood has a clubhouse, tennis, basketball, or pickle ball courts, the HOA maintains those as well.
There are utility bills and insurance. The HOA puts aside funds in reserve for major repairs, replacements, or unexpected costs.
Special Assessments in HOA Communities
Special assessments come up from time to time when you live in an HOA community. These are fees charged when reserves don't cover major repairs, natural disasters, or building reserves.
For example, if your neighborhood borders the water and needs a new seawall, residents receive a special assessment bill to cover the cost.
Factors Impacting Fee Amounts
There are many factors that affect the amount residents pay in HOA dues. Let's take a look at a few.
- Amenities offered (pool, gym, playground, clubhouse, etc.)
- Age and condition of the community
- Level of reserve funds
- Prior fee increases
All these factors together help the HOA board and management company come up with the HOA dues when making the annual budget.
Consequences of Not Paying
If a resident fails to pay their dues, they may face a lien, foreclosure, or eviction. Lenders account for HOA fees in mortgage approval, so residents should have the ability to pay.
Look at the Costs vs. The Benefits
Now that you know the good, bad, and the ugly when it comes to HOA fees, it's time to weigh HOA fee costs vs. the benefits. You may view these fees as a luxury expense or as a big chunk of your budget, but the convenience might be worth it.
An HOA management company can help with HOA fee collection, budgeting, and community maintenance. We at PMI Nortex Properties provide professional community association management services in the Dallas-Fort Worth area.
Contact us for the highest quality community association management services through our website or by calling 945-234-0700 for immediate service.
