Colorado is home to about 10,000 homeowners associations, accounting for a huge number of the 2.5 million housing units in the state.
HOA living should come with a particular set of perks, but they don't come for free. When you purchase a home in an HOA, you must agree to pay periodic HOA fees.
Collectively, homeowners association fees make up the entirety of a community's finances. These finances pay for everything, from regular maintenance to new amenities.
Today, we'll give you a short HOA fee breakdown to help homeowners understand HOA costs. It may not feel like it as a homeowner, but there are many benefits of HOA fees. Keep reading and learn where your hard-earned money is going.
What Are HOA Fees?
HOA fees are (usually) monthly fees that all homeowners in a community must pay to help cover a variety of expenses. They have nothing to do with your mortgage or any of your household expenses.
Instead, they cover general maintenance in the community, some of which may be related to individual properties. Mostly, they'll cover things like:
- Garbage removal
- Landscaping
- Park upkeep
- New amenities
- Road repair
- Utilities and insurance for common areas
- Some exterior home and property maintenance
Every homeowner's association is different, so your fees may cover different things than someone in the next community. The fees and what they're used for should be outlined in your community's governing documents.
Factors That Affect Fees
Numerous factors affect how much your HOA fees are each month. All associations have a board of directors that helps to create an annual budget for the community.
How much the board budget for things like general maintenance and upkeep - as well as plans for new amenities - will play a major role in how much your fees are. Poor accounting practices are a problem many communities face.
When your bookkeeping and budgeting are subpar, your HOA won't maximize the incoming HOA fees and they'll go up for each homeowner as a result. This is a clear indication that you need to hire HOA management to help you get your accounting back on track.
Benefits of HOA Fees
Paying monthly HOA fees can seem like a debilitating expense at first, but there are more HOA fee benefits than pitfalls. The biggest benefit is the quality of your community.
Having a well-funded community that makes the most of its money promises a high quality of life for residents. A well-kept community is also extremely attractive to potential investors, which can boost property values for everyone in the HOA.
HOA Fees and HOA Management
To ensure all homeowners are paying their HOA fees and that the community is making the most of its funding, you need experienced leaders. When your HOA board has poor accounting practices, hiring an HOA property manager is the best answer.
At PMI Northern Colorado, we're the top HOA management service in Fort Collins. We can help with fee collection, accounting, maintenance coordination, and everything else your community needs to ensure HOA fees are stable and properly spent. Contact us today to learn more.
