If you live in, or are considering, a community with a homeowners association (HOA), you’ll likely pay regular dues. What those dues cover depends on the community and its governing documents. This article gives a general overview of what HOA fees commonly pay for.
Common-area upkeep
Many associations use part of their dues for shared spaces, such as landscaping, sidewalks, trails, entry signs and snow removal on common roads or paths.
Exterior maintenance
In some townhome and condominium communities, the association handles certain exterior work, such as reroofing, siding, painting or paving. Which items the association handles, and which are the homeowner’s responsibility, is set by the governing documents.
Insurance
Some associations carry a master insurance policy for common areas or shared structures. Homeowners usually still need their own policy. An insurance agent can explain how the coverages fit together for your home.
Reserves
Many associations set aside part of the dues in a reserve fund for large, planned projects that come up every several years. For a plain overview, see our article on HOA reserve fund basics.
Administration and management
Dues may also cover accounting, record keeping, meeting costs, legal and tax preparation fees and, where the board hires one, a management company.
Where to find the details
Your association’s declaration, bylaws, rules and annual budget explain what your dues cover and how they are set. Board meetings and annual meetings are also a good place to ask questions.
How an HOA manager can help
Depending on the board’s needs, an HOA manager can help prepare budgets, collect dues, coordinate vendors and share financial reports with the board and owners. To learn more, read what a board can expect from an HOA manager.
Ironhorse Management has helped Montana associations since 1979. Learn more about our HOA management in Bozeman and across Montana, or request a proposal to see what a plan could look like for your community.
Please note: This article is for general informational purposes only and is not legal, financial or tax advice. Every association and situation is different. It’s wise to consult an attorney and/or CPA for legal or financial matters, and to review your governing documents and other appropriate resources before making decisions, rather than relying only on this article.