What HOA Fees Typically Cover
🏠 Property Services
🏊 Amenities & Services
What HOA Fees DON'T Cover
Average HOA Fees by Property Type
Single-Family Homes
Townhouses
Condos
Luxury Condos
Why HOA Fees Increase Over Time
1. Inflation
2. Aging Infrastructure
3. Deferred Maintenance
4. Insurance Costs
5. Low Reserve Fund
6. Amenity Additions
7. Lawsuit Settlements
Special Assessments: The Hidden Cost
Common Triggers:
Frequency:
Red Flags When Evaluating HOAs
🚩 High Monthly Fees Relative to Property Type
🚩 Recent Large Special Assessments
🚩 High Annual Fee Increases
🚩 Low Reserve Fund Balance
🚩 Aging Building with Deferred Maintenance
🚩 High Percentage of Renters
🚩 Low Collection Rate
Questions to Ask Before Buying
1. What's the reserve fund balance?
2. What were HOA fee increases over the last 5 years?
3. When was the last special assessment and for what?
4. Are any major projects planned?
5. What's the collection rate?
6. Is the HOA self-managed or professionally managed?
7. Can I see the HOA budget and financial statements?
When HOA Fees Make Sense
When to Avoid HOAs
Homeowners Association (HOA) fees are recurring monthly or annual payments that homeowners must pay
when living in an HOA-governed community. These fees can significantly impact your housing costs over
time, often adding tens or hundreds of thousands of dollars to the cost of homeownership.
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Landscaping and grounds maintenance: Lawn care, tree trimming, flower beds
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Snow removal: Driveways, sidewalks, parking lots (in northern climates)
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Trash and recycling: Collection services for the community
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Common area maintenance: Cleaning, repairs, upkeep of shared spaces
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Reserve fund contributions: Savings for major repairs (roof, siding, parking lot)
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Amenities: Pool, gym, clubhouse, tennis courts, playground
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Building insurance: Master policy for condos (exterior and common areas)
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Water/sewer: Some communities include utilities in HOA fees
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Management fees: Professional management company (if applicable)
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Security: Gate systems, guards, cameras
Source: Community Associations Institute, 2023
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Your unit/home insurance: HO-6 policy for condos, HO-3 for single-family homes
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Interior repairs: Plumbing, electrical, HVAC inside your unit
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Personal utilities: Electric, gas, internet (unless explicitly included)
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Property taxes: Separate from HOA fees
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Mortgage payments: HOA fees are in addition to your mortgage
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Special assessments: One-time charges for major projects
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Typical range: $200-$300/month
What you get: Lawn care, landscaping, community amenities, exterior maintenance
Notes: Lower fees than condos because you maintain your own structure
Typical range: $250-$350/month
What you get: Shared wall maintenance, roof, landscaping, amenities
Notes: More than single-family because of shared structure maintenance
Typical range: $300-$450/month
What you get: Building exterior, roof, hallways, elevators, amenities, master insurance
Notes: Higher fees because HOA maintains entire building structure
Typical range: $500-$1,000+/month
What you get: Concierge, doorman, high-end amenities, premium maintenance
Notes: Premium services and location drive higher costs
Source: Community Associations Institute, 2023
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Labor, materials, and service costs rise 2-3% annually according to the Bureau of Labor Statistics. HOA fees must increase to keep pace with these rising costs.
Older buildings need more maintenance. A 20-year-old condo building requires more repairs than a new one, driving higher costs. The Community Associations Institute reports that maintenance costs increase by 5-7% annually for aging properties.
If previous HOA boards delayed major projects to keep fees low, the current board must raise fees to catch up on neglected repairs. This can result in sudden 20-30% fee increases.
Property insurance has risen dramatically in many markets (Florida, California, coastal areas). According to the Insurance Information Institute, HOA master policies can double or triple in price, especially in disaster-prone areas.
If the HOA hasn't saved enough for major repairs, fees must increase to rebuild reserves or special assessments are levied. A healthy reserve fund should be 50-100% of the annual operating budget.
New amenities (upgraded gym, pool renovation, landscaping) increase operating costs permanently. While these may increase property values, they also raise monthly fees.
Legal issues, construction defects, or liability claims require funding through fee increases. These unexpected costs can significantly impact HOA budgets.
Special assessments are one-time (or recurring) charges for major projects that
exceed the reserve fund. These can add thousands to tens of thousands of dollars to your costs.
- Roof replacement: $5,000-$15,000 per unit
- Parking lot repaving: $2,000-$5,000 per unit
- Siding replacement: $10,000-$25,000 per unit
- Elevator modernization: $3,000-$10,000 per unit
- Pool renovation: $1,000-$5,000 per unit
- Balcony repairs: $5,000-$20,000 per unit
- Lawsuit settlements: Variable, can be massive
Expect a major special assessment every 5-10 years in a typical building. Poorly managed HOAs
may levy them more frequently.
- >$500/month for a single-family home
- >$600/month for a townhouse
- >$700/month for a standard condo
- Special assessments >$10,000 in the last 5 years
- Multiple special assessments in short period
- Fee increases >5% per year
- Sudden jumps (20%+ in one year)
- Reserves <25% of annual budget
- Reserve study shows major projects with insufficient funding
- Building 20+ years old with no major renovations
- Visible signs of disrepair (cracked pavement, peeling paint, leaky roofs)
- >50% rental units (owners less invested in long-term maintenance)
- Higher turnover, lower community engagement
- >10% of owners delinquent on fees
- Unpaid fees burden all owners
Good answer: 50-100% of annual operating budget
Bad answer: <25% or "we don't have one"
Good answer: 2-3% annually (inflation-matching)
Bad answer: 5%+ annually or irregular jumps
Good answer: >5 years ago for planned capital improvement
Bad answer: Recent or multiple assessments for emergency repairs
Good answer: Yes, and they're funded through reserves
Bad answer: Yes, and they'll require a special assessment
Good answer: 95-100% of fees collected on time
Bad answer: <90% collection or many delinquent accounts
Good answer: Professional management (more expertise, accountability)
Bad answer: Self-managed by volunteers (can work but higher risk)
Good answer: Yes, here they are (transparent HOAs are healthier)
Bad answer: No, that's private (red flag for poor management)
- ✅ You value amenities (pool, gym, clubhouse) and will use them regularly
- ✅ You don't want maintenance responsibilities (lawn care, snow removal, exterior repairs)
- ✅ The HOA is well-managed with healthy reserves and modest fee increases
- ✅ Monthly fee is reasonable for the property type and location
- ✅ Building is newer or well-maintained with no major deferred maintenance
- ✅ You plan to stay long-term and can afford potential fee increases
- ❌ Monthly fees >$500 for property type with minimal amenities
- ❌ Recent special assessments or major projects without funding
- ❌ Low reserve fund (<25% of budget)
- ❌ Fee increases >5% annually
- ❌ Aging building (20+ years) with visible deferred maintenance
- ❌ High renter ratio (>50%) or low owner engagement
- ❌ You want full control over your property without community rules