You just bought your dream place after speaking to the HOA and you couldn’t be happier. You already understand what the HOA does, but your HOA dues have you wondering: why are these fees so high? You aren’t alone. Many are confused as to why fees are so high and what they pay for. So, we’re going to break it down for you here.
Why Are They So High?
There are a ton of reasons why your HOA fees are high. They could include:
- Out-of-date contracts for maintenance and repair resulting in high cost
- High salaries for staff, doorman, or others who help manage the building
- Excessive financial reserves being saved
- Some owners aren’t paying, so the others are paying extra to cover it
- Mismanagement of the funds
- The number of units or age of your building
- The number of empty or foreclosed properties or units
- Assessments to pay for large expenses, including roof repairs, parking lot repaving, and other major property upgrades
A lot of issues your HOA may be facing are probably accidental. Sometimes, your HOA may award contracts to contractors based on personal connections with disregard to cost and quality.
To determine how you can lower your fees, check out this quick list we put together of things you can do.
Ultimately, it is your decision whether or not to buy into an HOA. But, keep in mind that an HOA can help increase your property values and oftentimes can help lower the cost of repairs with reserve funds.
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