Am I Required to Pay HOA Fees?
Apartment Complex LifeA homeowners association (HOA) provides several valuable services to members of a community. For one, the HOA funds and maintains the joint areas of the neighborhood, such as walkways, parks, and swimming pools. Additionally, the HOA is in charge of creating and enforcing the rules of the community. In return for these services, community residents pay monthly dues to the HOA. These monthly fees are mandatory and can range from $100-$10,000 per year. Read on to learn more about HOA fees and what can happen if you don’t pay them.
What Determines HOA Fees
The area in which you live will have a major impact on HOA fees, as will the number and quality of amenities offered in the development. If you live in a pricey neighborhood, your community is more likely to have high homeowners association fees. Likewise, if your community has a number of amenities, you can expect your HOA dues to be higher. For example, neighborhoods with tennis courts, parks, pools, and similar facilities tend to charge higher HOA fees.
Where Your Money Goes
HOA fees primarily fund the maintenance of the community’s common areas. This is why neighborhoods with many amenities have higher HOA costs; the additional amenities cost more to maintain. Your HOA dues also pay for the association’s legal fees when they file suit against residents. Remember that an HOA is a non-profit organization with a volunteer board of directors, so your HOA is not making money from your dues.
What Happens If You Don’t Pay
You could lose your home if you don’t pay your homeowners association fees. Your HOA has the right to evict you or foreclose on your house if you fail to pay your dues. Even if your HOA fees are minimal, the HOA can still kick you out of the development for failure to pay. Paying your HOA dues late is also not a good idea—the HOA can charge you penalty fees if you do.
Avoiding High HOA Fees
Once you’ve moved into a community, there is little you can do about high homeowners association fees other than attend the meetings and voice your concerns. However, if you haven’t moved in yet, the best way to avoid high HOA fees is to research them beforehand. Your landlord or real estate broker should be able to tell you how much the HOA fees are per month. You can use this number as one of your criteria for deciding on a place to live. If you would like to avoid HOA fees altogether, there are developments that are not governed by an association, though they tend to be older.
