Here are commonly asked questions about HOA dues.
1) What are HOA dues for?
HOA (homeowners association dues) are paid by a group of condo owners to maintain the property and common areas. They are used to maintain and improve landscaping, pools, tennis courts, golf areas, clubhouses, neighborhood parks, fitness center, community utility bills, administration, management, legal fees, security and other items that benefit the beautification and safety of the community.
2) What are the average HOA dues?
Unfortunately there are no average HOA dues. All the factors depend on how many common expenses the residents share. Typically fees are in the 100-600 range, but this seven bedroom, 25,000 square food luxury LA penthouse has almost $20,000 in monthly dues.
3) How much will the HOA dues increase over time?
Usually the HOA dues will increase gradually over time as wages, utilities and supplies increase in price. Sometimes, if a major repair is needed, the HOA dues can increase rapidly. It is very important to look at the property history and anticipated projects in the pipeline before purchasing a home.
4) Are HOA fees tax deductible?
Typically HOA fees are not tax deductible because the IRS considers this a payment to a private entity. The exception is if your property is an investment or rental property. Then the HOA fees are considered part of your overall expenses and can be written off.If you are interested in learning more information talk to your Tax Professional or pick up a copy of the IRS publications 530 (Tax Information for Homeowners) and 527 (Residential Rental Property).
5) Do I have to pay HOA fees?
Yes! If you do not pay your HOA fees, depending on your governing documents the managing entity can assess late fees, remove your access to common areas, collect rent directly from your tenant if your unit is a rental and even take out a lien on your property that will include attorney fees associated with the process and they will get their expenses and fees covered before you get any sales from the property.
6) Who is in charge of the HOA?
This should all be in the governing documents, but typically the HOA is governed by the HOA Board of Directors who are residents who are elected by the community. They can be assisted by a third party property management company or a hired staff.
7) Any advice on how to get involved with an HOA?
When you move into a new community, take the time to attend a meeting and introduce yourself to the current Board of Directors and let them know what you like about the community. Stay engaged and act with kindness as much as possible, so that when you have something that you would like to see improved all ears are open to the neighbor who is a pleasant asset to the community.
If you are searching for the perfect condo, our Highrises.com agents can help you find it. We know about the HOA dues for different buildings in your city.