Homeowners association dues
Fees paid monthly to cover the maintenance and amenities of a condominium complex or neighborhood.
A Glossary Term: homeowners association (or HOA) is an organization of property owners that upholds the rules and guidelines of the building or community and manages the funds needed to maintain common areas. Typically, there are two kinds of homeowners associations: one for Glossary Term: condominiums and one for neighborhoods. Condo associations are usually responsible for managing a multi-unit building or group of buildings, while neighborhood homeowners associations manage a community (usually a subdivision or a development) of Glossary Term: single-family homes.If you are looking to buy properties that are part of HOAs, there are a few extra things to consider before you make your decision.
If you buy a condo or a home with a neighborhood HOA, you will be responsible for paying annual, quarterly, or monthly dues on top of your monthly mortgage payment. These dues typically cover maintenance costs for the common areas of a building complex, grounds and Glossary Term: amenities, or neighborhood. Contact the HOA to determine what the dues are for the home or unit you intend to buy, and what they do and do not cover.
There are a couple of things you can expect when you choose a property managed by an HOA:
Getting answers to the following questions can help you decide if the investment makes sense for you:
Most importantly, know your dues and be aware of how often and how much these dues could increase in any given month and year. And when calculating your monthly mortgage payment, be sure to include these costs.