More than 73 percent of Americans agree that an integral part of achieving the classic ''American Dream'' is owning a home. While buying your first home is an incredible achievement, it's a financial commitment that can impact the rest of your life.
Choosing whether to purchase a stand-alone home or one within a Home Owner's Association (HOA) is also something to carefully consider. Both choices have their perks, you just have to determine what your home ownership goals are.
If you're considering buying an HOA home, here's what to know about HOA fees and more.
HOA Fees and What They Cover
When you purchase a home within an HOA community, you are responsible for paying fees that help to cover the cost of maintaining your community.
You might have to pay these fees monthly or quarterly. The fees are assessed and determined by the HOA committee and everyone within the community must pay them.
HOA fees generally cover the following:
- Maintenance of the grounds within your community, i.e. landscaping
- Maintenance of common areas and local amenities i.e. swimming pools, tennis courts, playgrounds, etc.
- Trash removal services
- Pest control
- Electrical maintenance
- Sewage control and more
- Community management tips from the HOA board
Even if you pay off your mortgage, you'll still have to pay HOA fees if you continue to live within the HOA community. You'll have to pay these fees along with property tax and homeowner's insurance, too. If you live in a condo, you'll most likely have to pay condo association fees.
HOA Fee Costs
As of January 2024, the national average that homeowners pay is $190 per month. Depending on the community you purchase a home in, these fees can go up to $300 per month.
HOA fee rates vary depending on a multitude of factors, but some of the most common include:
- The state and local laws governing HOA fees
- The local cost of living
- The cost of local real estate
- The type and variation of amenities within your community
The general consensus is that a larger residence will pay more HOA fees than a smaller one. This is because a larger home with more residents takes more maintenance.
Tips on Managing Your HOA Fees
- Do your homework on what you can expect from HOA fees before you purchase a property and make sure it fits into your budget
- Take a thorough read through the CC&Rs (covenants, conditions, and restrictions) of the HOA and understand how they'll impact your standard of living
- Do some research on whether HOA fees have increased in recent years and how much you should budget for that
- Set aside a maximum amount each month for your HOA fees, or create a direct debit order so that it comes off your account automatically
Generally, information on HOA fees is readily available on the real estate listing.
Want to Learn More About HOA Ownership?
If purchasing a property within a Home Owner's Association appeals to you, make sure to do your fair share of homework on what to expect, first. This blog just scratches the surface of what there is to know about HOA fees.
If you're interested in learning more about Hartford HOA Management, PMI Property Management is here to guide you in the right direction. Get in touch with our team today - we'd be happy to explain what our association management services include.
