HOA Fees: What Do They Cover? - Quicken Loans Zing BlogConsider HOA Fees When Purchasing a Home

Purchasing a home requires you to make many decisions. Aside from which home to choose, you’ll have to consider the type of home, location and size as well. If you choose a condo vs. a single-family home, you will have to take HOA (Homeowner Association) fees into account as you plan your budget.

Owning a condo has its advantages and disadvantages. For instance, condos give you the opportunity to enjoy your home without having to worry about mowing the lawn or snow removal, for example. However, these services are not free. HOA fees are the source of funds that are used to pay for these amenities.

What Do HOA Fees Cover?

Each association has different policies. This is why it’s wise to ask the seller for a list of the HOA rules and regulations. If the seller doesn’t have one available, you can ask for the name of the property management company who oversees the community in order to get more details.

In general, these are some of the costs that can be covered by HOA fees:

  • 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 still need an individual insurance policy to cover everything inside of the condo.
  • Lawn Care- This includes snow removal, gardening and general lawn maintenance.
  • 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, etc. It also covers the costs of gym or pool maintenance, if applicable.

If you don’t mind paying HOA fees every month and like the convenience of having some labor-free amenities, purchasing a condo may be the best option for you. However, keep in mind that HOA fees may increase each year as the cost of services go up. For instance, if the value of the property goes up, then the insurance costs could also go up. This means that your HOA monthly fee could increase as a result.

Taking HOA fees into consideration while you’re shopping for a new home is a crucial part of the home-buying process. Sit down with your realtor and weigh out the pros and cons of the home, and don’t forget to factor the HOA fees into the equation. Properly evaluating the true costs of a home can save you headaches down the road.

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This Post Has 12 Comments

  1. Our HOA is owned by the builder. We aren’t allowed to attend any meetings or have any say in any decisions regarding our neighborhood. For years there was no evidence of where money was being spent. Neighbors were so bitter, they were not getting to know each other. I hate living in this type of environment. How can we have a voice in anything. Isn’t this against the law? Please advise.

  2. I have a question? Can an HOA make you pay for paving all drive ways? We are being told it will cost 108 thousand for 36 homes that is a cost of 3,000 per owner and just last year we had to pay 2,500 for painting all of the Condos. This is vey upsetting we keep paying for the outside and cannot afford to upgrade the inside… Please help with my question Thank you

  3. If I buy a condo and the HOA includes insurance do i have to have homeowners insurance as well as renters insurance or can the renter just have rental and it covers it all

    1. Hi Carlos! We’d suggest talking with your management team and see what exactly your HOA includes and if the insurance covers everything you’d like.

  4. Nice Blog Gabriela!
    I think condos/townhomes HOA fees are higher than SFR. In Ladera Ranch for example, SFRs are around $200 but condos are double that (so I’ve read on CD a couple years ago).

  5. The HOA is great if they actually do everything you are paying for. If you have the HOA that covers my home then you pay for the maintenance yourself plus the HOA fees. I’m still paying trash pick up when i was told it was included.

  6. You actually make it seem so easy with your presentation but I find this matter to be actually something which I think I would never understand. It seems too complicated and very broad for me. I’m looking forward for your next post, Iíll try to get the hang of it!

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