What Does A Homeowners Association Fee Cover?

When looking to buy a home, make sure to check if the neighborhood has a Homeowners Association. An HOA will help regulate the neighborhood keeping up with common areas, restrictions and guidelines to keep the neighborhood in tip top shape, and more. If you are buying a single family home, there may not always be a HOA or an HOA fee to worry about. If you are buying a condo, there will always be an HOA with HOA dues that cover a laundry list of things for you.

Below are a few of the things that are covered but keep in mind each association is different and it depends on if you are buying a condo or single family home

  • City Services– Including services such as trash removal, water and sewage.

  • Insurance– This only includes insurance for damage of the outside of the building and the property around it. You will still need to purchase your own insurance policy to cover everything on the inside of your home.

  • Lawn Care– This covers snow removal, gardening and general lawn maintenance as well as essential tree removal and mulching.

  • Pest Control– Most HOAs schedule a monthly inspection from a pest control company in order to avoid pest infestation.

  • Maintenance and Repairs to the Outside of the Building- This includes things such as roof leaks, exterior painting, driveway pavement repairs, gutter repair, Carports, lighting, security systems, gated entries, mailboxes, etc.

  • Amenities- HOA can sometimes cover community amenities such as a gym, tennis court, walking trails, pool or playground. It will also cover the cost of maintaining these amenities.

  • Special Assessments- This is an account that the HOA uses to pay for unexpected communal expenses. If a tornado or fire destroys communal property for instance, HOA fees can cover a percentage of the repair costs.

  • Premiums for Disaster Insurance- Keep in mind they do not pay for individual homeowners insurance coverage.

If paying HOA fees every month doesn’t bother you then you should consider purchasing a home with a Homeowners Association and the labor-free amenities it comes with. You do want to keep in mind however, that HOA fees can increase each year as the cost of services increases.

Read more here.

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