What Do Your HOA Dues Pay for?
If you’ve ever wondered what you pay your association dues for or where that money actually goes, our hope is to shed some light on this topic for you today, and to help you better understand what actually goes into running the business for a community association.
How Frequently Do You Pay HOA Dues?
Every association is a bit different. Most associations require a monthly fee. Some pay quarterly. And others even annually. But no matter when you pay or how much you pay, the association dues are considered income for your community association’s budget. This income pays for all the necessary expenses that come attached to living in an HOA.
HOA Services Covered by Regular Dues
For example, there’s a reason most homeowners who live in an HOA don’t have to mow their lawn, remove snow from the streets or driveways, repair a hole in the roof, or pay the trash company directly. These are all examples of things that would come out of the money you pay in your association dues. Some of the bigger ticket items that a self-managed association pays for that take up most of the budget are things like:
- Trash and recycling
- Monthly contracts (lawn, snow, etc.)
- Maintenance and repair expenses
- Utilities and contributions to the association’s reserve account, which helps pay for future projects
All these are vital to keep the business of the association running smoothly. If your association employs the services of a full-management company, this can also be a very large-line item in the budget that we’ve seen associations pay thousands of dollars per month depending on the size of your community and how they’re contract is written. Contact your board of directors or attend the next board or annual meeting if you want to find out more about your association’s budget and what your dues help pay for in your community. Otherwise, contact HOA Assist to learn more about annual association dues.