One of the biggest questions buyers have about condos, townhomes, and planned communities concerns the monthly HOA fee. Many people view this as just an extra cost, but it’s important to understand what these fees actually cover and who is setting them.
Who Sets the Fees and Why?
It’s important to understand that HOAs are usually comprised of homeowners just like you—your neighbors. Their primary goal is to serve the best interests of the community, which includes all residents. They are not a faceless corporation trying to maximize profit; they are managing the shared business of the neighborhood.
What the HOA Fee Actually Covers
HOA fees cover essential services and, crucially, the upkeep of shared lifestyle amenities that would be far more expensive to manage individually.
| Category | Typical Services Covered |
| Essential Services | Trash removal, snow removal, general lawn treatment, shared utilities. |
| Major Maintenance | Exterior maintenance (e.g., roofing, stucco, siding), shared building insurance. |
| Lifestyle Amenities | Security (doorman, gates), tennis courts, basketball courts, community pools, clubhouses. |
The reason these fees can be high is usually due to the level of amenities and services offered. An association providing doorman security and exterior maintenance on every unit will naturally require a higher budget than one that only manages a small patch of grass.
The Key Takeaway
Remember, the HOA’s role is to benefit the community as a whole. The monthly fees you pay reflect the value of the shared services and amenities available. When evaluating a home with an HOA fee, always compare the cost to what you would pay if you had to cover those services (like roof repair or pool maintenance) yourself.
