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It's trendy to complain about HOA actions, rules, and fees; not everyone hates their HOA. 63% of homeowners living in an HOA are satisfied with the benefits they receive for their HOA fees. One reason people complain is due to a lack of understanding.
If HOA homeowners don't know how their fees get used, they can become dissatisfied with the HOA management. Explaining how the money gets allocated can improve community management approval.
What Are HOA Community Fees?
An HOA charges its community members a fee. This could be paid monthly or yearly to the association by the homeowners.
What Do HOA Property Fees Cover?
Every HOA community is different. What the HOA fees cover can vary significantly from one community to the next. Because of this, you will want to read your HOA bylaws carefully.
Hiring the right management company can make HOA living more enjoyable. With careful management, you can ensure all afforded benefits and amenities get provided to community members.
Municipal Services
Some HOA communities provide municipal services for their community members. This could include water, wastewater, or trash services.
Association Insurance
An HOA must maintain an insurance policy that protects the association from liability. Because the HOA is responsible for maintaining the community grounds, the insurance covers any injuries or damage that occur while people use the grounds.
Maintenance and Repairs
A portion of the HOA fees paid goes towards maintaining the community. This includes landscaping, building maintenance, and pest control. It can also include the upkeep and upgrades of recreational areas, such as sports courts, playgrounds, and pools.
It can cover seasonal maintenance tasks, such as snow removal from the parking lots and community roads.
Amenities and Services
If the community provides amenities, those services are paid through HOA fees. This could include community safety features like a gate, lighting, or cameras.
In addition, amenities could include luxury amenity services for high-end communities. These could consist of a fitness center, concierge, valet, or community lounge. The HOA fees would cover the entire cost of the facility operations, from location to staffing.
Reserve Funds
A reserve fund will cover unexpected costs. This could include emergency repairs or upgrades.
This is a part of responsible financial management. Working with an HOA management company can assist with financial accounting.
Why Are HOA Fees Higher in Some Areas?
Generally, the higher the HOA fee, the more amenities and community benefits you have to enjoy. The New Jersey Planned Real Estate Development Full Disclosure Act (PREDFDA) does not restrict what an HOA can charge.
Manage Your HOA Fees Effectively
HOA fees are a standard part of living in an HOA community. While many homeowners lament paying this additional fee, it brings some valuable benefits. Helping community members understand what their fees go towards can improve their satisfaction with the HOA's performance.
At PMI Turn Key NJ, we work with HOA board members to improve the operation and financial management of the community. This includes careful accounting of the HOA fees.
Improve your HOA fee management with the help of the experts at PMI Turn Key NJ.
