If you\u2019re moving for the first time into a community with a homeowner association, you must be wondering how much it\u2019ll all cost you. What do HOA fees cover, are they negotiable, and how are they collected? Do you have to pay HOA fees even if you aren\u2019t using the services it offers, and what happens if you don\u2019t pay them? We\u2019ll guide you through all the details, explain HOA rules thoroughly, and provide an insight into how a homeowner association functions. <\/p>\n\n\n\n
Homeowner associations are formed within communities, buildings, or neighborhoods where properties are owned by multiple parties. The aim of these organizations is to create and enforce rules regarding the properties within their jurisdiction regarding the cleanliness and the condition of the properties and their uniform appearance. What else is a homeowners association in charge of? An HOA can also be in charge of minor tasks such as seasonal lighting, snow removal, etc. <\/p>\n\n\n\n
HOAs have the legal authority to require residents to abide by the terms of the contract they signed. If the property you bought was previously in an HOA, in most cases, you\u2019ll automatically become a member of it. That\u2019s why getting acquainted with the HOA\u2019s rules should be a part of your due diligence when buying a home<\/a>. Failing to abide by these rules can lead to penalties such as monetary fines, the restriction of some privileges, or even legal actions. <\/p>\n\n\n\n Let\u2019s shed some light on homeowners association fees. Depending on the neighborhood, the monthly or annual HOA fees members are required to pay usually range from $200 to $400 per month. In luxury neighborhoods, fees can go up to $10,000, while HOAs in less attractive areas can have lower-than-average fees of about $100 per month. <\/p>\n\n\n\n The prices vary depending on the city or area, too. According to a Trulia study from 2015, the lowest were in Warren, Mich ($218 per month) and the highest in New York City ($571). The same study established that older buildings entail a higher average fee due to more extensive maintenance requirements. <\/p>\n\n\n\n Before we get into detail, please note that this isn\u2019t a definite list. Different HOAs offer different services to their members, so you should always check the rules of the particular HOA your (prospective) home belongs to. In this section, we\u2019ll discuss the most common, basic services.<\/p>\n\n\n\n The homeowner association will usually cover the expenses of repairs in common areas, lawns, roads, and pavements maintenance, as well as snow removal. What else do HOA fees cover? It can be the maintenance of common areas, such as patios, lobbies, elevators, landscapes, and many other things.<\/p>\n\n\n\n Sometimes, HOAs cover certain communal utilities: trash removal, electricity for communal areas, water and sewer fees.<\/p>\n\n\n\n Residents of condominiums often struggle with cockroach infestations, and single-family houses sometimes have to deal with rats, termites, squirrels, or even rabbits that can seriously damage gardens. Having your HOA deal with pest control – especially roaches in buildings – is only logical because these insects spread from one unit to another, so getting rid of them has to be a joint effort if it\u2019s to be successful.<\/p>\n\n\n\n Condos association fees won\u2019t cover the insurance costs for your humble abode but only for the communal areas and the exterior of the building. In case, for example, your condominium and\/or the surrounding property is damaged in a natural disaster, you can lean on your HOA. But make sure to purchase homeowner\u2019s insurance to protect your home. <\/p>\n\n\n\n We\u2019ve listed some essential services covered by HOA fees. However, those who reside in more luxurious properties might get additional perks included in the (higher) price, such as security services or access to spas, gyms, tennis courts, swimming pools, community clubhouses.<\/p>\n\n\n\n After learning the answer to the question \u201cWhat are HOA fees?\u201d your next question is likely whether HOA membership is mandatory. With more than 350,000 homeowner associations in the US running about 53% of all properties, future homeowners don\u2019t have much choice unless they\u2019re lucky enough to find a home within the jurisdiction of a voluntary HOA.<\/p>\n\n\n\n If you reside in a community with a voluntary HOA, you don\u2019t have to sign up for its services. By refusing the HOA payment, you probably won\u2019t have (free) access to communal facilities or community clubs reserved for members only. On the bright side, apart from not having to pay the steep fees, you won\u2019t have to abide by the rules imposed by the association. <\/p>\n\n\n\n If typing \u201cWhat do HOA fees cover\u201d into the search box is what landed you here, it\u2019s more likely than not that your real estate is in an area with a mandatory HOA. That means you will have to pay a monthly fee and abide by its rules. The good side of the situation is that you won\u2019t have to deal with maintenance and bureaucracy yourself. However, painting your house in loud colors, keeping a zoo at home, or renting your apartment to just anyone without going through a thorough tenant screening<\/a> process first probably won\u2019t be an option. <\/p>\n\n\n\n An average HOA fee is a major budget item for most families, so many people are tempted to just skip their payments. A word of caution if you\u2019re thinking about dodging the fees and\/or rules of your HOA: Penalties against rule-breakers can be harsh and might lead to legal action against the homeowner or even foreclosures of the property. <\/p>\n\n\n\n To avoid all that unnecessary trouble, take enough time to study the rules of your future home\u2019s HOA. According to real estate statistics<\/a>, home buyers spend 10 weeks on average searching for a new home, so there\u2019s plenty of time to examine all the possible sanctions and restrictions a HOA might impose.<\/p>\n","protected":false},"excerpt":{"rendered":" If you\u2019re moving for the first time into a community …<\/p>\nHow Much Will It All Cost You?<\/h2>\n\n\n\n
What Do Homeowner Association Fees Cover? <\/h2>\n\n\n\n
Communal Areas Maintenance<\/h3>\n\n\n\n
City Services<\/h3>\n\n\n\n
Pest Control<\/h3>\n\n\n\n
Insurance<\/h3>\n\n\n\n
Additional Amenities <\/h3>\n\n\n\n
Do You Have To Join an HOA?<\/h2>\n\n\n\n
Voluntary HOA<\/h3>\n\n\n\n
Mandatory HOA<\/h3>\n\n\n\n
Breaking HOA Rules <\/h2>\n\n\n\n