Many homeowners living in homeowners’ association (HOA) communities are aware they are charged HOA fees. The cost of HOA fees may be budgeted with the mortgage, property taxes, interest, property insurance costs and other expenses. Many homeowners are – quite naturally – relieved once they make their last mortgage payment. However, HOAs may still need to remind homeowners that they are still responsible for their ongoing HOA fees.
When addressing HOA fees with homeowners, it can help to explain what the fees are for and when they are due. Here is what you should know:
The purpose of HOA fees
Some homeowners may not be happy when they are told they have to continue making regular HOA fee payments even after their mortgage is paid off. It can help to explain to homeowners what these fees represent. Typically, HOA fees cover basic HOA operations – and homeowners continue to benefit from these even though they no longer have a mortgage.
For example, HOA fees may be used for common area maintenance, such as landscaping, trash removal, snow plowing and repairs. HOA fees may also be used for shared recreation spaces, such as swimming pools, tennis courts, parks and fitness centers. HOA fees may also cover liability and property insurance.
Once a homeowner understands what their HOA fees are being used for, they may be more understanding about the price they pay.
Making HOA fees on time
Homeowners should pay HOA fees regularly and on time even after their mortgage ends. Homeowners may need to be reminded that they are still expected to make HOA fee payments.
When a payment is missed, it can lead to issues. HOAs may need to address unpaid HOA fees with homeowners. Professional legal guidance can help resolve payment issues.