When looking for a condo, townhome, or a property in a planned or gated community, be sure to take a look at the Homeowners Association (HOA) fees. HOA fees are included for all common areas of the property. Since there are multiple residents in the same complex, all are required to join the HOA and help cover the costs of common areas.
HOA fees cover monthly expenses for upkeep and maintenance of the property and common areas. This can include landscaping, pool area, fitness room, parking lots, and hallways. In addition, utilities and insurance for these common areas are covered through HOA fees.
Along with covering monthly maintenance costs, part of the fee goes into a reserve fund. This fund can be used for larger, planned expenses, such as plumbing or a new roof for a building. Reserve funds may also be used for emergency situations, like the expenses that occur from a natural disaster.
Are HOA fees worth it?
That can depend on what you are looking for. The amenities that come with complex living can be unbeatable, especially when you don’t have to deal with the day-to-day maintenance or the stress when an unexpected cost arises. Generally speaking, the more upscale a complex and its amenities, the higher the HOA fees are. The cost of fees can also depend on where you live. For example, living in humid, subtropical Florida can raise the HOA fees for the price of landscaping alone. Always be sure to find out what the fees are and exactly what they cover before making a decision to purchase a condo or townhome