What are HOA Fees?
Defining Homeowners Association Fees
Homeowners Association Fees are monthly payments, made by a homeowner to their neighborhood Homeowner’s Association (HOA).
HOA fees are common for those who own or rent condominiums, but may also be levied on single-family homes as well.
Typically these fees are applied at a set rate that is known at the point of purchase of the respective home.
What is the Purpose of HOA Fees?
HOA fees are collected and then put to use for the purpose of maintaining or expanding shared common areas within the neighborhood or complex.
For example, in most condo complexes there is typically a lobby of some kind, maybe a pool, a couple of sports courts and a gym.
All of which need to be maintained up to a certain level.
HOA fees ensure that this takes place.
What Is the Cost?
The size of an HOA fee depends largely on the neighborhood, or complex you’re living in and what services the HOA provides.
So, in short, expect a larger HOA fee, with the more available public amenities that are available.
The average monthly fee is about $200.
When Payment is Deferred
If you were to decide to not pay their HOA fee, then depending on the agreement you and the HOA have made, the HOA has the right to charge late fees, or even take measures toward foreclosing on your property.
So be sure to pay those HOA fees, they’re no joke!
Also, HOA fees, although a possible annoyance, really do a lot to raise the quality of life, as well as the value of your home.