What are HOA fees and what should property managers know?

Whether you manage a single unit in a condo complex or multiple properties across HOA-governed communities, HOA fees are part of the equation. In this post, we’ll break down what HOA fees are, what they typically cover, how they’re calculated, and what they mean for property managers and their residents.

What Are HOA Fees?

HOA fees are recurring dues paid by homeowners in a community that’s governed by a homeowners association (HOA). These fees fund the upkeep, operation, and shared amenities of the community, helping maintain the quality and value of the neighborhood.

HOA fees are typically collected monthly, quarterly, or annually, depending on the association’s budget and the services it provides. While they can vary widely in cost, the purpose remains the same: to pool resources for the benefit of all homeowners in the association.

What Do HOA Fees Typically Cover?

HOA fees can cover a wide range of services and expenses—some visible and some behind the scenes. What’s included often depends on the type of property (condo vs. single-family home), the size of the community, and the level of amenities.

Here are some of the most common items included in HOA fees:

• Landscaping and Groundskeeping: Maintenance of lawns, trees, flowers, and shared outdoor spaces.
• Exterior Maintenance: Repairs and upkeep of building exteriors, especially in condo or townhome communities.
• Amenity Maintenance: Pools, clubhouses, fitness centers, and playgrounds often require cleaning, staffing, and repairs.
• Snow Removal and Trash Pickup: Particularly in communities with private roads or alleys.
• Pest Control: Coverage for shared structures or outdoor areas.
• Security: This may include security patrols, gated access systems, or camera monitoring.
• Utilities for Common Areas: Electricity, water, and gas used in community facilities or lighting.
• Insurance for Common Areas: Covers damage to shared spaces or liability for injuries that occur there.
• Reserve Fund Contributions: A portion of fees typically goes into a reserve fund for future major expenses.

What’s Not Covered by HOA Fees?

Just as important as knowing what’s included is knowing what isn’t. HOA fees usually do not cover:

• Property taxes
• Mortgage payments
• Repairs or maintenance inside the homeowner’s unit
• Individual homeowner’s insurance (unless it’s a condo association with a master policy)
• Utilities used inside the home or unit

Property managers should make sure residents understand these boundaries, especially when onboarding new tenants or owners.

How Much Are HOA Fees?

The cost of HOA fees can vary significantly depending on several factors:

• Location: Fees tend to be higher in urban areas or regions with higher property values.
• Amenities: Communities with pools, gyms, elevators, and concierge services generally have higher fees.
• Property Type: Condo fees typically cover more (like building maintenance), so they may be higher than fees in a single-family home HOA.
• Age of the Property: Older communities may require more maintenance, resulting in higher fees.

On average, HOA fees range from $100 to $400 per month, though they can be significantly higher in luxury communities or high-demand markets.

How Are HOA Fees Calculated?

Each HOA sets its fee structure based on its annual budget. The board reviews projected expenses for maintenance, insurance, reserves, and services, then divides the cost among homeowners. Distribution can be equal or based on square footage, unit location, or other criteria outlined in the association’s governing documents.

If you’re a property manager, it’s important to understand the calculation method for each property you manage. This helps with accurate budgeting and clear communication with both owners and residents.

What Happens When HOA Fees Go Unpaid?

Unpaid HOA fees can have serious consequences—not just for homeowners, but for property managers trying to maintain smooth operations. Here’s what may happen when dues aren’t paid:

• Late Fees: Associations may charge penalties for missed payments.
• Loss of Privileges: Residents may lose access to amenities like pools or fitness centers.
• Liens: The HOA can place a lien on the property, which can affect refinancing or sales.
• Foreclosure: In extreme cases, some HOAs have the legal right to foreclose on a property.

Property managers should stay on top of payments, communicate regularly with owners, and work with HOAs to resolve issues before they escalate.

How Do HOA Fees Affect Property Managers?

While you may not be responsible for setting or collecting HOA fees, you’ll still encounter them in several areas of your work:

1. Lease Pricing and Marketing

If fees are particularly high, they can affect the unit’s affordability and how you price rent. Some property owners choose to include HOA fees in the rent, while others pass them along separately.

2. Tenant Communication

Make sure tenants know what’s covered by HOA fees and what isn’t. If trash pickup, pest control, or snow removal are handled by the HOA, make that clear.

3. Coordination with the HOA

You’ll likely be the go-between for your client (the property owner) and the HOA. Keeping open communication ensures you’re aware of rule changes, fee increases, or maintenance updates.

4. Onboarding and Move-In

Educating residents on HOA policies and fees during move-in helps avoid confusion later—especially if the HOA has rules around parking, noise, or amenity use.

Frequently Asked Questions

Who pays HOA fees: the tenant or the owner?

In most cases, the owner is responsible. However, some owners may include the cost in the rent or assign it to the tenant through the lease agreement.

Can HOA fees change?

Yes. Fees can increase due to rising costs, increased reserve contributions, or new services. The HOA board usually votes on any changes.

Are HOA fees tax-deductible?

For homeowners, HOA fees are not typically tax-deductible. For rental properties, however, they may be considered a deductible expense. Always check with a tax advisor.

Do tenants get access to amenities if the owner isn’t paying HOA dues?

Access can be restricted if the account is delinquent. Property managers should confirm the account is in good standing before onboarding tenants.

What’s the difference between HOA fees and special assessments?

HOA fees are recurring. Special assessments are one-time charges issued when the reserve fund doesn’t cover an unexpected or large expense—like a new roof or major repairs.