Why do HOA fees differ?

Townhomes

Why do HOA fees differ so much between complexes?    Multi-family buildings include a few items in their monthly fee such as water/sewer, trash, snow removal, grounds maintenance of common areas, exterior building maintenance with roof and insurance of the exterior building.    Some don't pay for water/sewer and some do not pay for exterior building with roof.    Some complexes have amenities lika pool and clubhouse with fitness center. 


Each complex has a Board of Directors that reviews the budget.   This is when they review contracts with vendors who do the snow removal and also the maintenance of the grass/sprinkler systems.      When there have been many storms that produced hail or tornadoes and roofs had to be replaced/repaired, these fees are factored into the monthly fee.    To keep a complex in good condition, the buildings must be painted every few years, parking lots need to be repaired which will be factored into this fee.

Condo buldings

As buildings age, the fees increase to maintain older buildings.    As elevators age, these are expensive to repair/replace, as well as a boiler and the duct work or plumbing the building may be responsible for.  


If you are contemplating purchasing in a multi-family complex, review the budget.     There are many documents you have the right to review to include the budget.   I would encourage new buyers to get involved in their HOA, go to the meetings and know what rules are being reviewed, and what issues are being discussed.

High-Rose Buildings


When you have major repairs needed that are not in the annual budget (such as roof replacements) you will see special assessments included in the monthly fee.     These are generally only assessed for a one year period.

Low rise condo buildings


You will see HOA fees ranging from $150-$600 (approximately) for multi-family complexes, and newer housing developments have HOA fees that include only grounds maintenance for common areas and trash removal for single detached family homes.


When looking for a multi-family unit, you have choices between townhomes, low-rise condos and high-rise condos.

If you need more information by complex, please give me a call.

 

 

 

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61 Comments on Why do HOA fees differ?

20 Most Recent Comments Displayed Show All

MAR
07
338,126 Points 8 Featured Posts Outside Blog Called Shot Master

This is a good and straightforward post explaining the different HOA fees. Lyn's comment #41 is really relevant. I was looking into purchasing a foreclosure that has monthly fees of 1,000 (very high) solely because of the grounds and the pool.
6:24am • #43
954,132 Points 52 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I showed one loft downtown with over 400 units, and the HOA fees were over $500 and many items throughout the building were old and needed replaced.   These items turn off a buyer very fast, even though the unit would have worked well for the buyer.
6:25am • #44
1 Featured Post

Joan. I was listing agent in a brand new construction of 20 units by a high end builder with great quality. I bought a unit myself after figuring out what my own home costs were and adding those up against the association dues and found I was better off buying a unit with the pre-construction cost. I also ended up on the HOA Board right in the beginning and later on as well. Reading all the rules and regulations and condition of the complex, its age, type of HOA is an absolute must before anyone enters into living in a condo complex. We got a good management company and didn't have a lot of amenities.

I personally woud never live in a huge complex where you are more likely to end up with politics and people who didn't get involved except for complaining.

 Thanks, Joan for a good explanation of all the varieties and reasons for different HOA fees and the need to be educated right from the beginning before searching for HOA living.
6:53am • #45
389,219 Points 27 Featured Posts Outside Blog Called Shot Master
Joan: Price of a unit is not the only thing to consider. Age of the building that needs maintenance is one that will become costlier in Hoa fees especially if unexpected.
7:49am • #46
1,306,668 Points 96 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master

There is a difference from complex to complex, and it's obnoxious trying to remember everything. I have a buyer right now comparing a complex that is only $89 a month to cover all exterior landscaping and watering, with another that is $220 a month that covers basic cable, water, sewer, and trash... It's going to be paid anyway, but do you want to do it on your own or within your HOA?
8:14am • #47
Outside Blog

The HOA is run by the residences and they have to keep the financial status in the BLACK.  What residences forget is that the things they want done cost them all money and if they need the pool area redone, the parks redone, then the fees need to provide that money.  They are not a profit based entity but they can't function in the red.
8:40am • #48
471,429 Points 11 Featured Posts Attended Rain Camp Called Shot Master

Joan, your post is an excellent explanation of HOA fees.  This is a great topic that few buyers understand.
9:46am • #49

well said
10:10am • #50
133,242 Points Outside Blog Attended Rain Camp

funny here in Massachusetts we refer to two plus homes which are usually rental units as "multi-families"  but I can certainly understand why a condo complex could be referred to in the same way.  Thank you for updating me on your area of the country's jargon.
12:38pm • #51
1,440,059 Points 26 Featured Posts Outside Blog Called Shot Master

This is very good information for prospective home buyers.  Our HOA has very strict architectural requirements.  Any physical changes must be approved in advance.
2:30pm • #52
556,847 Points 6 Featured Posts Outside Blog

I am always really cautious with condos.  You can get burned big time if they do not have their budget in order and have to charge a special assessment.
3:12pm • #53
Outside Blog

Very well said; thank you.  Also, the HOA fees may vary with the square footage of the unit.  Yes, join the assoiciation; be informed!
3:31pm • #54
774,733 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
Joan, HOA's run the gamut here from about $100/year to around $3,200/year and what you get in return varies greatly.
7:55pm • #55
354,316 Points 30 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hi Joan,

Congratulations on another great post! HOA's are a mystery to many and you did an excellent job giving explanations that make sense.

Thanks again for all that you do to educate so many.
9:21pm • #56
103,365 Points

Joan, Great information about HOA!! I save it, excellent post, Thank you for sharing!
9:21pm • #57
MAR
08
195,512 Points Outside Blog

Lyn, #41 sums it best and I agree.
4:38am • #58
895,568 Points 34 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hi Joan, good post and I'm sure that's why it was featured. Congratulations.
7:39am • #59
MAR
10
939,762 Points 94 Featured Posts Outside Blog Attended Rain Camp

What a great idea for a blog post. I know that so many people were probably curious about this!
7:19am • #60
MAR
22
204,231 Points 26 Featured Posts Outside Blog

I can certainly understand why HOA fees differ...for all of the reasons that you suggest. My second home is a townhome in Colorado and the HOA is $750/mo AGGGGGHHHHHHHHHHHH
9:38pm • #61
APR
16

As the Secretary of my Homeowner Association in Fort Collins, it’s sometimes a challenge trying to maintain work, family and my HOA duties . However, when I discovered Association Online all of that changed. No need to worry about piles of paperwork, their software is quite easy to use and all our HOA documents are stored and managed online. This allows our Board of Directors to operate in a more effective way. You should check them out at www.associationonline.com or call (970-226-1324). I highly recommend them for all Homeowner Association needs.
Joe Delgado
9:11am • #62

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Joan Cox, Denver Real Estate-720-231-6373

Denver, CO

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Metro Brokers - House to Home, Inc. - Denver Real Estate

Address: 8101 E. Belleview Ave. Ste F, Denver, CO, 80237

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