People generally aren't fans of having extra fees attached to their home ownership. That's one of the main reasons why a person may not want to live in a community with an HOA or deal with their rules.
However, HOA fees exist to help the association take care of you and your community. Without those funds, they wouldn't be able to do what they do or get anything done in your area. Understanding those fees and the rules attached to them is important for homeowners who want to avoid getting ripped off or taken advantage of, though.
Here's everything to know about homeowner association fees and why they exist.
Importance of HOA Fees
An HOA is generally created by a real estate developer to help manage common areas in their community. Its main role is to keep the neighborhood in the best condition possible and encourage homeowners to do the same.
The reason HOAs collect fees is to gain the funds required to do their job. While a developer may fund it themselves in the beginning, they usually require support from their community.
HOA Fee Breakdown
It helps to know where your money is going so you can determine whether or not it's worth your time.
Most HOAs use their fees to cover things like maintenance and repairs, amenities, shared utility expenses, security measures, and even insurance policies. The actual HOA board handles the enforcement of its rules, manages vendors, and communicates with residents.
Each association is unique and handles different tasks and responsibilities. Some may need to account for public amenities such as a swimming pool or park. Others might focus mostly on maintaining properties and reducing liability.
HOA Fee Guidelines
Homeowners associations are governed by Texas laws and regulations to maintain consistency and protect homeowners. This applies to how they collect and use their fees.
For example, associations must establish and adhere to guidelines if they want to avoid arbitrary fee imposition. They would also be well-advised to create a well-structured budget so they can stay accountable and avoid financial mismanagement.
If a homeowner fails to pay their fees, then the HOA can place an assessment lien on the property. However, they cannot otherwise evict or punish the homeowner.
HOA Cost Comparison
When comparing fees, consider what is included with your HOA. You can usually tell that they're charging too much if there aren't nearly enough amenities to justify the cost.
In addition, a successful HOA listens to their residents and budgets responsibly. You can always talk to current residents to learn more about their experience with their current HOA board.
Understand Your HOA Fees
If you still aren't quite sure how your board handles its HOA fees, then you can always ask them for an outline of their budget. They should provide this to you by default and according to their legal requirements.
PMI RGV provides property management services for McAllen, TX, and its surrounding communities. We can help with your residential, association, commercial, and realty needs. Schedule a consultation today to learn more.
