Homeowner’s Associations collect monthly dues from property owners to help fund and maintain community resources. Not paying your HOA fees on time can cost you extra money—and potentially restrict or suspend your access to HOA benefits.

Maybe you just moved into your brand-new condominium, or you and your family are settling into a planned community. Whatever your situation, as a resident of an HOA—short for Homeowner’s Association—you’ll enjoy additional amenities in the form of community resources, neighborhood upkeep and maintenance, and much more.

But, there’s an extra price tag associated with these benefits: HOA fees. HOA fees are levied monthly from your homeowner’s association, and help fund a variety of local resources and amenities that you and your neighbors can all enjoy. But what are those resources and amenities, exactly, and how much do HOA fees cost?

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. Read on to learn the basics of HOA fees.

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What is an HOA?

A Homeowner’s Association—or HOA—is an organization that establishes and implements rules and regulations for a community. Homeowners associations are common among condominiums, and they also regulate planned communities and certain subdivisions, townhomes, and neighborhoods. People who purchase a property governed under an HOA automatically become members of the association and are required to pay monthly dues.

The basics of HOA fees

Your monthly dues as a member of a homeowner’s association are called HOA fees. HOA fees help cover the costs of maintenance in common spaces in your community, including things like landscaping, lobbies, or building utilities. They also may fund certain amenities like clubhouses and swimming pools.

Are HOA fees expensive?

The cost of HOA fees depends largely on where you live. Some associations may levy fees of less than $100 a month—but in other areas, these fees could be over $1,000. On average, however, HOA fees are usually between $200 and $300 per month.

That might seem burdensome or expensive, but HOA fees often cover expenses like utilities and home maintenance that you’d have to pay for anyways—so paying them may wind up saving you money in the long run.

How are HOA fees determined?

The amount collected in fees from your homeowner’s association depends on the specific needs and services in your community. Your HOA’s board of directors will typically assess these needs and services and set an annual budget accordingly.

The size of your community, number of residents, maintenance costs, and types of amenities all play a factor in determining the cost of fees.

Can HOA fees change over time?

Yes, HOA fees are subject to change over time. Most HOA boards set budgets three to five years in advance based on the projected costs of community services and upkeep.

Additionally, inflation and special assessments may cause HOA fees to change or increase over time.

How often are HOA fees due?

Most homeowner’s associations levy fees monthly, although some organizations choose to levy them quarterly instead.

Key takeaway: HOA fees are usually levied from residents in condominiums and townhomes, but certain planned communities and single-family neighborhoods also may have an HOA

MORE: How to settle into a new house

What do HOA fees cover?

HOA fees help cover the costs of maintaining community spaces. Depending on your exact community, your fees may fund utility services like garbage removal and landscaping, or keep shared spaces like lobbies and patios clean and up-to-code. Below is a list of the common services your HOA fees help pay for:

Utility services: Trash removal, water, and sewage are typically covered by HOA fees, meaning you won’t have to pay monthly utility bills for these services.

Community spaces: If you live in a condominium, your HOA fees likely help keep shared spaces like lobbies, elevators, and patios up to code for the use and enjoyment of all residents.

Community amenities: Some communities may also have extra amenities like swimming pools, clubhouses, or fitness centers (to name a few examples) that are paid for in part by HOA fees. The more services and amenities your community offers, the higher your HOA fees are likely to be.

Maintenance and repairs: A portion of your HOA fees will likely be allocated toward the maintenance of common structures. They also may extend to lawn care services, landscaping, snow removal, pest control, and other general repairs that improve the well-being of the community.

Insurance: Many HOA’s cover insurance costs, especially for residents living in shared buildings. As a result, some of your fees may be allocated to paying for coverage.

Reserve funds: HOA fees that are not expressly allocated to any one purpose are set back in a reserve fund. These funds act as a safety net for the HOA—if there’s an unforeseen problem that occurs, reserve funds can help cover the costs of emergency repairs, and reduce the chances of your next monthly bill flying through the roof.

MORE:

Pros and cons of bundling home and auto insurance

Are HOA fees mandatory?

Yes, paying your HOA fees is a mandatory part of membership with your homeowner’s association. Not paying your HOA fees on time can result in fines or financial penalties, impact your access to community spaces, and even harm your fellow residents.

Late fees

Missing a payment due date can earn you a late penalty on your monthly statement. If you fail to pay your fees (including the penalty) within 30 days, the fine may increase.

Suspended privileges

Missing HOA payments can also negatively impact your access to community services and spaces. Homeowners associations can restrict your ability to enter clubhouses or pools or withhold services until your fees have been paid off.

Lawsuits and property foreclosures

Continued failure to pay your HOA fees can warrant legal action against you by your HOA. Lawsuits can be pricey for both you and your HOA—not to mention your fellow residents, who will likely incur your financial penalties if you’re not paying your HOA fees.

Your HOA may also file a lien against your property or initiate a foreclosure. While some states have stricter regulations for homeowners associations, others don’t—so depending on where you live, your HOA may be able to foreclose your property for only a few hundred dollars.

Key takeaway: Not paying your HOA fees can negatively impact both you and others in your community

MORE: How to make a counteroffer after a home inspection

Finding affordable home insurance

While your HOA covers insurance on shared structures and buildings, their policies usually don’t extend to what’s inside your home—like personal property. Protecting your belongings requires your own

home insurance

policy. Luckily, the

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When it’s time to make the switch, Jerry will handle the paperwork and phone calls involved in swapping insurance policies, so all you have to do is sit back, relax and let the savings roll in. The best part? Jerry users save an average of $887 a year in insurance!

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Do you have to pay HOA fees?

Yes, paying your HOA fees is a mandatory part of membership with your homeowner’s association. Failing to pay your HOA fees can result in additional financial penalties and occasionally legal action against you by your HOA.

Are HOA fees tax deductible?

No, HOA fees are not tax-deductible on your federal tax return. However, certain exemptions may exist if you work from home or rent your property.

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