Depending on many variables \u2014 including your own personality \u2014\u00a0you might find an HOA and its associated dues either a convenience or a hassle<\/a> (or some measure of both). The association will offer some perks and handle some hassles, but it also regulates and enforces homeowners under the CC&Rs (covenants, conditions, and restrictions). And an HOA does come with a fee.<\/p>\n But you might not be clear on what those mandatory dues are actually doing for you. So, what do<\/i> HOA fees cover<\/a> \u2014\u00a0and what don\u2019t<\/i> they? Let our guide, with expert input, serve as your primer on what to expect from HOAs.<\/p>\n Condo HOAs<\/a> manage the buildings where the condo units are located, as well as common areas surrounding them \u2014\u00a0think lobbies, patios, hallways, swimming pools, elevators, and recreational areas. If your building has a gym, that\u2019s the kind of thing you\u2019d expect to see included in, and covered by, your HOA dues. The HOA also covers insurance for these areas, as well as staffing and property management.<\/p>\n Typically, condo HOA fees would also cover utilities, such as lighting. And the fees would cover city services that aren\u2019t necessarily glamorous, but are certainly essential \u2014 think trash removal, water, and sewage.<\/p>\n As well, dues would cover services needed to maintain the condo\u2019s expected standards, such as landscaping, gardening, and pest control.<\/p>\n You could also expect your condo HOA to cover major repairs that might be needed, such as a new roof or elevator. Your HOA may have a large cash reserve for such issues \u2014 and it may also call upon residents for a special assessment if a major need pops up whose cost exceeds the reserve funds.<\/p>\n These HOAs maintain neighborhood standards meant to keep home values high. For example, you might expect the organization to make rules surrounding which paint colors or types of landscaping are acceptable. And the HOA might make rules forbidding rental properties<\/a>.<\/p>\n Neighborhood HOAs also cover common areas, like any parks, recreational facilities, clubhouses, tennis courts, and pools.<\/p>\n HOAs would handle services for a neighborhood, such as staff and property management. They might \u2014 but not necessarily \u2014 also cover city services like trash or snow removal.<\/p>\n The neighborhood HOA also stockpiles reserve funds.<\/p>\n Kendall Gigax<\/a>, a top-selling agent in the Toledo, Ohio, area, notes that not all HOAs are active \u2014 and that can become an important matter to note when considering a home purchase.<\/p>\n \u201cIn my neighborhood, you still can view the rules and see what\u2019s expected, but if somebody decided not to follow them, there\u2019s no legal recourse,\u201d she explains about her inactive association. \u201cThey have not kept up, there\u2019s nobody in charge of it.\u201d<\/p>\n (Word to the wise here: If you decide to paint your house purple with yellow polka dots, you may get away with it legally in such a situation, but you may face a lot of social pressure for the decision nevertheless. \u201cIt\u2019s not a great way to make friends,\u201d she notes.)<\/p>\n By contrast, she notes that the newer subdivisions in her region have active associations \u2014 and at a low cost of about $100 to $250 per year (not per month). But for such a low fee, those HOAs may just give very basic guidelines, and maintain only limited common areas, like the entrances and the signs.<\/p>\n Your HOA will not cover your own mortgage<\/a> or your own home; you need your own insurance policy<\/a> for those.<\/p>\n And it won\u2019t cover the costs associated with keeping up your own property, nor upgrading it. So your subdivision\u2019s clubhouse roof is handled by HOA, but your own<\/i> roof is your responsibility. Similarly, even if lawn care for common grounds is covered in your HOA dues, you\u2019re still going to have to mow your own<\/i> lawn. (And in fact, the maximum height of your grass might even be dictated by the HOA<\/a> and its CC&Rs.)<\/p>\n Your HOA is meant to have a reserve fund that covers financial needs associated with major upgrades that may be necessary \u2014 say, a new clubhouse roof or elevator, or another emergency that could come up. But if that fund comes up short, all occupants could get a special assessment \u2014 meaning an ask for additional money to cover the costs. Yes, this money is in addition to and apart from your regular HOA dues (and it can be hard to plan for).<\/p>\n Before you make a home purchase, ask to take a look at the HOA\u2019s financial reports. If your HOA doesn\u2019t have a reserve fund \u2014 or doesn\u2019t have one that seems it would be adequate for the age or state of the condo, neighborhood, or subdivision \u2014 that\u2019s a red flag that a special assessment might likely be necessary at some stage.<\/p>\n Gigax explains that few clients come to her actively seeking an HOA as part of their home search<\/a> \u2014 in fact, she says, it\u2019s quite the opposite.<\/p>\n When clients come to her stipulating that they want to exclude properties with HOAs as part of their home search, she says she asks them to clarify their concerns so she can help debunk any myths. \u201cI ask why, because sometimes there is misconception about what the homeowners association is going to do,\u201d she says.<\/p>\n \u201cClients may be avoiding houses they might not need to. I make sure they understand the associations \u2014 especially if they\u2019re from out of the area.\u201d<\/p><\/blockquote>\n And that\u2019s because associations and their common practices and dues vary so widely from region to region.<\/p>\n Among the biggest misconceptions, she explains, is that people, \u201cfeel that HOAs are more interested in every little minute detail than they really are. I try to make them understand that the whole reason they\u2019re established is so no crazy stuff goes on \u2014\u00a0you wouldn\u2019t want your neighbor to pull up their RV on the lawn and leave it there for a month.\u201d<\/p>\n![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/03\/what-do-hoa-fees-cover-gym-666x381.png\")
<\/a>What do condo HOA fees cover?<\/h2>\n
What do neighborhood HOA fees cover?<\/h2>\n
![\"\"](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/03\/what-do-hoa-fees-cover-grass-666x381.png\")
<\/a>What do your HOA dues not<\/i> cover?<\/h2>\n