Did you know that over 70 million people live in an HOA? This is most likely due to all the benefits it can bring. Community members have access to events and amenities that those in other neighborhoods do not.
The only downside of living in an HOA neighborhood is the fees. The money homeowners spend goes toward making the community a better place for everyone to live, but it can be brutal.
We can help you decide on fair HOA fees for your residents in Dallas-Fort Worth, Texas. Check out this guide to learn more.
What Are HOA Fees?
HOA fees are the dues homeowners must pay to live within the community. Those who don't pay will lose access to HOA perks, such as the community pool. Missing several payments could result in the foreclosure of the resident's home.
HOA fees cover a wide variety of things. Trash removal, lawn care, association insurance, neighborhood maintenance and repairs, pest control, and snow removal are only a few of the many.
Review the Budget
When deciding on a fair fee for your HOA community, it's important first to review the budget. Sit down with the rest of the members of the homeowner's association and a property management company to write down your yearly expenses.
Consider factors such as landscaping, pool maintenance, reserve funds, salaries, and utilities for common areas.
Budget Vs. Number of Residents
Once you've written down your budget, divide this number by the number of residents in your HOA community. The total is the fee that you'll need to charge homeowners to take care of expenses.
While it may be tempting to lower the amount to keep residents happy, sadly, that might not be in the cards. If you shoot too low, your HOA won't have enough money to operate.
Factor in Late Fees
When a homeowner doesn't pay their fees on time, most homeowners associations will charge them a late fee. Again, if they still don't pay, the repercussion for it is getting kicked out of the valuable neighborhood.
You should add a little wiggle room in your budget to account for these late fees. When homeowners pay late, it can set your organization back financially.
Ignore Surplus Numbers
If your association has a fund surplus left over from the previous year, you may want to roll it into your budget calculations. This is something you should be careful with.
While using the surplus money would allow you to lower your HOA fees, you may end up coming up short later. Instead, put the extra cash into your reserve fund.
The Secret to Calculating Fair HOA Fees
As you can see, there's a lot to consider when calculating fair HOA fees in Dallas-Fort Worth, Texas. It starts with sitting down to discuss the matter with your organization.
Most HOAs hire a property management company to manage their finances. PMI DFW Properties has been helping HOAs decide on fair fees for over 20 years, and we can assist you too. Go here to learn more about our services and schedule a consultation.
