When beginning your home search, you may start to wonder, "What is an HOA fee and why do so many homes come with one?"
A homeowners association (HOA) fee is the money homeowners pay monthly or quarterly to cover services and amenities in the community. The HOA board is tasked with managing the money and maintaining home values.
According to the Foundation for Community Association Research, more than 75 million Americans live in HOA communities. The foundation predicts a spike in 2024 with more than 3,000 new HOAs forming.
Are you curious about what Hyattsville community fees cover? Keep reading this guide to understanding HOA dues in Hyattsville, MD.
1. Maintenance and Repairs
A large portion of HOA fees go toward maintenance and repair of common areas. What are the common areas? These are the entrances, grassy areas, swimming pools, clubhouses, pickleball courts, and playgrounds.
All of these need to be maintained and kept in good repair to keep the community looking good and working well for the residents. The overall aesthetics of the community relate to property values.
If the neighborhood looks bad, buyers are less likely to shop for a home in that community. Moreover, homeowners want to see their dollars at work with a beautiful neighborhood aesthetic.
2. Utilities
As much as the HOA board may want to reduce HOA fees, board members are at the mercy of current utility rates. These costs have a big impact on the overall HOA fee structure.
The HOA pays for water and electricity for neighborhood amenities. Other utilities include waste management, street lights, irrigation systems, and HVAC for common areas.
3. Reserve Funds
One of the few HOA cost-saving tips is to have adequate reserve funds. Reserve funds are similar to a family savings account. It's money set aside to cover major repairs and unexpected expenses.
Major repairs and expenses include things like resurfacing parking lots and pools or replacing clubhouse roofs.
Any competent HOA board or property management company knows the importance of reserve funds for financial stability. These reserve funds help communities avoid special assessments when a large unexpected expense pops up.
4. Insurance
HOA fees cover the various insurance policies that neighborhoods require. Liability and property insurance, flood insurance, theft insurance, and directors and officers insurance are all necessary for an HOA community.
These insurances play an important role in protecting the community and its assets.
Understanding Your HOA Fees
Now that you know more about HOA fees and what they cover, are you more likely to buy a home in an HOA community? If you can manage HOA expenses, there are a lot of positives to residing in a planned community.
Go in that direction and you'll appreciate a higher HOA home value. If your HOA partners with PMI PG County, your community will benefit all the way around. We understand HOA dues and how to manage them, including HOA cost-saving tips. We coordinate maintenance and manage compliance issues.
Get on board with the premier association management company in the county. Call us at 301.810.3741 or schedule a consultation with us today.
