Understanding Condo Fees Vs. HOA Fees: Home Association Cheat Sheet

When you’re moving to a new community or building, you might fall in love with a spacious courtyard or updated fitness center. And when you’re not renting, you might wonder, “But how do I pay for this?”

Usually, the answer is through condo or homeowners association (HOA) fees. This can be confusing for new homeowners who aren’t sure if they’re paying condo fees vs. HOA fees or what the difference between these costs even is.

In this post, we’re covering what these fees are, how they’re different and some amenities that are typically covered when you’re paying these fees for your new home.

Table Of Contents:

• What Are Condo Fees?
• What Are HOA Fees?
• What Do Fees Cover?
• Fee Amounts
• Fees Vs. Fines
• Fee Assessments
• Condo Fees Vs. HOA Frequently Asked Questions

What Are Condo Fees?

A condo is a residential building with multiple units that share walls.

Condo fees are fees that the condo property management organization determines will cover the upkeep for the entire building. These fees are generally split according to ownership interest, so individuals with larger units or multiple units may pay more than individuals with smaller units.

The reason property management charges condo fees is to maintain the quality of living for all condo residents – condo owners split ownership of shared areas, so the idea is that they should split upkeep, too.

Condo fees typically cover:

• Building security
• Parking
• Garbage and recycling collection
• Landscaping and cosmetic maintenance
• Condo amenities
• Homeowners insurance

What Are HOA Fees?

A homeowners association is an organization that implements property rules for residents in a neighborhood.

HOA fees cover the upkeep of amenities and areas in a neighborhood that are strictly communal. HOAs can exist in all types of living situations, from apartments to single-family homes.

In a neighborhood with an HOA, the HOA itself typically owns the common areas, which is why it reserves the right to implement rules that residents must follow. HOA rules are meant to preserve property values, and individuals are often fined if they don’t follow the rules set by the HOA.

HOA fees typically cover:

• Landscaping and cosmetic maintenance
• Garbage and recycling collection
• Neighborhood amenities
• Repairs and maintenance for shared spaces
• Snow removal and road maintenance (if not covered by local governments)

Condo Fees Vs. HOA Fees

When you’re considering moving to a condo or neighborhood with an HOA, it’s important to know how the fees work. Let’s discuss some of the similarities and differences between condo fees and HOA fees.

Fee Coverage

In the typical condo association or HOA, fees will cover these services:

Condo:

• Landscaping and cosmetic maintenance
• Condo amenities
• Garbage and recycling collection
• Homeowners insurance
• Building security
• Parking

HOA:

• Landscaping and cosmetic maintenance
• Garbage and recycling collection
• Neighborhood amenities
• Repairs and maintenance for shared spaces
• Snow removal and road maintenance

These fees will vary from community to community depending on what amenities are available. In some cases, you can be charged both condo and HOA fees. For example, in a condo building with an HOA, your condo fees might cover maintaining the hallways, while the HOA fees might cover the sidewalks and lawn.

Fee Amounts

Across the United States, the average HOA fees are $250 a month. Condo fees are typically more expensive because homeowners in an HOA are responsible for repairs on their own homes, while certain condo repairs are shared costs.

For example, if a homeowner in a single-family home with an HOA broke their fence, they’d be responsible for repairing it. However, if this happened in a condo, the security risk would be for multiple owners, so there would be a shared responsibility to fix it.

Fees Vs. Fines

Fees are planned monthly payments where the cost covers repairs or maintenance and doesn’t change month to month. Fines are one-time penalty costs for transgressing any rules or standards set by the HOA. Condo associations don’t typically charge fines, but HOAs are notorious for fining members.

Some common reasons HOA members get fined include:

• Repainting or renovating home exteriors without approval
• Improper yard or lawn maintenance
• Parking violations
• Not completing cosmetic repairs in a timely manner

Fee Assessments

Fee assessments determine how much each owner pays for condo or HOA fees. HOAs typically charge each homeowner the same amount unless there’s a large difference in the size of the home or plot of land. Condo associations typically charge fees proportional to the ownership interest in the property, so fees are proportional to condo size.

If the regular condo or HOA fees don’t cover a necessary repair, homeowners may be charged a special assessment, which is an extra charge to cover the difference. This is considered a fee and not a fine because it covers a necessary repair and is not the result of a homeowner breaking a rule.

Condo Fees Vs. HOA Frequently Asked Questions

Now that you have the basics, let’s cover some common questions about condo fess vs. HOA fees.

Do All Condos Have HOA Fees?

Not every condo has HOA fees. A homeowners association is different from a condo association, and depending on the community, a condo owner could be responsible for either fee or even both.

What Do Most Condo Fees Include?

Most condo fees include:

• Security
• Parking
• Garbage and recycling collection
• Landscaping and cosmetic maintenance
• Condo amenities
• Homeowners insurance

What Do Most HOA Fees Include?

Most HOA fees include:

• Some landscaping and cosmetic maintenance
• Neighborhood amenities
• Repairs and maintenance of shared areas

How Are HOA And Condo Fees Assessed?

HOA fees are usually equally split between homeowners in an HOA, while condo fees are usually split proportional to ownership interest in the condo property.

Ready To Move Forward With A Condo Or New Home?

It’s important to have an accurate estimate of your monthly payments – like HOA or condo fees – when financing your home. Take some of the stress out of finding the perfect mortgage for your home and explore your loan options with Quicken Loans® when you’re ready to make a change.