Buying Process
Last updated: Jan 20255 min readUnderstanding HOA Fees
What you get, what you pay, and red flags to watch
Homeowners Association (HOA) fees are monthly or annual charges for shared community amenities and maintenance. They can range from $100 to $1,000+ per month.
1What HOA Fees Cover
Common inclusions:
Exterior Maintenance:
Amenities:
Insurance:
Exterior Maintenance:
- Landscaping and lawn care
- Building exterior (condos)
- Roof repairs (condos/townhomes)
- Parking lot/common areas
Amenities:
- Pool and fitness center
- Clubhouse
- Security/gated entry
- Trash and recycling
Insurance:
- Master policy for common areas
- Sometimes includes exterior of units
2Evaluating HOA Health
Request these documents:
HOA Financials:
Red Flags:🚩 Low reserve fund (<3 months expenses)🚩 Recent or planned special assessments🚩 High delinquency rate🚩 Ongoing lawsuits🚩 Deferred maintenance visible
HOA Financials:
- Annual budget
- Reserve fund balance
- Recent meeting minutes
Red Flags:🚩 Low reserve fund (<3 months expenses)🚩 Recent or planned special assessments🚩 High delinquency rate🚩 Ongoing lawsuits🚩 Deferred maintenance visible
3HOA Rules and Restrictions
Common regulations:
Review CC&Rs (Covenants, Conditions & Restrictions) before buying!
- Exterior paint colors
- Landscaping requirements
- Pet restrictions (size, breed, number)
- Rental restrictions
- Parking rules
- Noise policies
- Short-term rental bans (Airbnb)
Review CC&Rs (Covenants, Conditions & Restrictions) before buying!
Pro Tips
- HOA fees can (and do) increase annually
- Special assessments can be thousands of dollars
- Strong reserves = less risk of special assessments
- Factor HOA fees into your affordability calculation