Approximately 66 percent of new homes built in 2022 were part of a homeowners association (HOA), up from 17 percent in 2011. There are many advantages to living in an HOA community, including grounds upkeep, amenities, and security. These all translate to better home value retention.
These assets cost money though, which comes in the form of HOA fees. Each neighborhood determines the amounts and what the funds should be used for.
This article covers HOA fee basics. Keep reading to find out how to set the right amount for your Roswell neighborhood and the appropriate ways to use funds.
What Are HOA Fees?
HOA fees are also referred to as "HOA dues." These are payments made by every household or condominium in the association. They are often set per calendar year but are usually collected monthly or quarterly.
HOA fees are mandatory, as they are used for myriad services and projects that benefit everyone in the community. Fee levels depend on where you live and the amenities they support.
What Do HOA Fees Cover?
HOA fees can go toward almost any cost or project. Here are the most typical ones to consider:
Grounds Upkeep and Building Maintenance
Neighborhoods or condominium complexes with HOAs have common areas. These include grounds or buildings, both of which need regular upkeep.
Landscaping services are typical costs for neighborhoods with green areas. Upkeep of fencing and entry gates is another. Communal buildings require regular HVAC, electrical, plumbing, and pest control services.
HOA fees also go toward the upkeep of amenities in the community. Examples include pools, gyms, tennis courts, and playgrounds.
Special Projects
HOA fees also can go toward community improvement projects. These can be almost anything, but common examples include putting in a swimming pool, dog park, or community garden.
A neighborhood could decide to repave sidewalks or plant trees on the grounds. Condo associations might wish to renovate a lobby or other common area. HOA dues would go toward these improvements.
Community Events
HOA dues can also pay for community events. Festivals, potlucks, cookouts, or even music events fall into this category. You can use HOA fees to cover almost any activity in which the entire neighborhood or condominium can participate.
Insurance
Many of the costs listed above are optional and decided on by the community. One that is not is insurance coverage.
This protects the HOA board and the community in general in the event of a lawsuit. It also helps cover medical expenses for anyone who becomes injured on the property.
Administrative Costs
HOA management incurs miscellaneous administrative costs. Typical ones include accountants, insurance agents, and lawyers. If you pay for tax preparation, bookkeeping, or financial services, HOA dues can go to pay for these.
Find HOA Management Services Near You
Now that you understand the basics of HOA fees--what levels are appropriate and what they should be used for--you can decide what is best for your neighborhood. An experienced HOA management company can further assist you will all aspects of dues, including collections, budgeting, and more.
PMI Roswell is a full-service real estate management company. We offer a range of residential services, including HOA management and board resources. Reach out to us today to learn more about improving HOA living.
