Do HOA fees and property values go hand-in-hand? Most would answer, "Yes!"
When you choose to buy a home in a planned community with a homeowners association, you agree to become a member of the HOA and expect benefits like higher property values.
This membership also comes with rules and fees. These fees vary greatly depending on location and amenities. The average HOA fee in Dallas, TX is around $100 but can get up to $650 in the New York City area.
Are you wondering about the essentials of HOA fees and how they are calculated? Keep reading as we explain how these fees affect your community living in McDonough, GA.
What Do HOA Fees Cover?
The monthly, quarterly, or annual HOA fee that homeowners pay is the money required to operate the community. The fees cover the maintenance of common areas and amenities like pools, tennis courts, playgrounds, bike trails, and clubhouses.
These fees cover other financial obligations and prepare the community for the future.
HOA Fee Breakdown
HOA fee calculation includes more than just the upkeep of the common areas and the community pool. Let's take a look at the breakdown of what your HOA dues cover.
Amenities
What kind of amenities does the neighborhood offer? Is there a community pool? Are there pickleball courts? Is there a splash pad?
Many neighborhoods have even more amenities like fitness centers and security guards. Residents share the cost of these amenities.
Maintenance and Repairs
Common areas and shared structures needing regular maintenance fall under HOA fees. This can include the following:
- Maintenance of roads and parking areas
- Pest control
- Landscaping and lawncare
- Snow removal for roads and parking lots
- Pool maintenance
Keeping these things maintained and in good repair is a boost for the community at large.
Reserves
What happens when something unexpected happens in the neighborhood? Imagine that the pool needs to be resurfaced. Where does that money come from?
In a neighborhood with a responsible HOA board or management company, there should be money in reserves. On the flip side, in a community that doesn't have a reserve fund, the association would have to charge a special assessment for unexpected expenses.
Insurance
HOAs carry insurance to cover injuries or damage sustained within the community. This includes common spaces, recreational areas, and anything the HOA is responsible for maintaining, including sidewalks.
It doesn't cover individual homes so homeowners still need to secure their own homeowners insurance policy.
Municipal Services
These services include trash removal, water, wastewater management, and security. Sometimes internet and cable are bundled into your HOA fee.
Know the Benefits of HOA Fees
Now that you know more about HOA fees and their benefits, are you more or less likely to buy a home in an HOA community? Keep in mind that HOA fees go toward the upkeep of the community and boosting your property value.
The neighborhood thrives when the community has a great community management company like our team at PMI Peachstate. The professionals at PMI Peachstate have 20 years of experience in the community management space.
We customize our services to meet the unique needs of your community. Schedule a consultation with us today.
