As dramatic as it sounds, HOA living can be problematic. Despite the horror stories, the concept of HOAs isn't naturally good or bad.
What happens inside the HOA community depends on the board members. A homeowners' association and its various features can benefit you in many ways.
This article will focus on HOA fees and how they improve your community and property value. Read on to learn about HOA fees and why paying them matters.
Property Valuation and HOA Fees
HOA fees are funds contributed by members of the community. Anyone who moves into an HOA property is part of the association and must pay dues. One perk to HOA living is the various amenities and beautifying efforts.
There are two parts to maintaining this high standard of living. The first is standardized rules to keep the neighborhood attractive and uniform.
The second part is the HOA dues, which sustain amenities and services. For example, HOA fees cover exterior maintenance like pressure washing the pavement and trash removal.
A house near a well-maintained swimming pool, gym, and courtyard will have a higher market value. People will pay more for an attractive home near plenty of amenities.
There are three kinds of HOA dues: yearly or monthly homeowners' association fees, HOA assessments, and HOA fines. The homeowners' association fees come split into five classifications and include the following:
- General operating expenses
- Management company fees
- Association Insurance
- For injuries and damage sustained in HOA-controlled areas
- Amenities and their upkeep
- Pool maintenance
- Fitness centers
- Clubhouses
- Concierge and valet services
- Members can expect to pay more for luxury amenities
- Security
- This can include gates, security guards, and cameras
- General repair and maintenance
- Pest control and common area upkeep
- Parking lot and neighborhood road maintenance
- Lawn care and landscaping for common areas
- Snow removal for shared roads and parking lots
- Utilities
- Trash removal
- Water and wastewater management
- Reserve funds
- Money set aside from HOA fees for emergency expenses
HOA Assessments and Fines
HOA assessments are a separate fee for major, non-routine maintenance, repairs, and other emergency expenses. The association management often takes money from the reserve fund for these situations.
The problem is when there isn't enough reserve money. HOA homeowners may have to make added payments to cover the cost.
For example, if the tiles surrounding the pool need repair, the HOA will dip into the reserve. The HOA board will ask the residents for assessment funds if the reserve can't cover the cost.
HOA management charges fines for failure to follow association rules. You should find possible penalty fees outlined in the Covenants, Conditions, and Restrictions.
Let an Experienced Team Handle It
HOA fees can make your Hyattsville, MD, neighborhood stand out. The money goes towards ground upkeep, repairs, and amenities everyone can enjoy. However, collecting those dues is one of many tasks the HOA management has to handle.
PMI PG County is a full-service association management company with over ten years of experience. We can help process HOA fees, manage the association budget, and give financial reports to the HOA board. Contact us today to improve the HOA management experience.
