There are more and more communities in the United States forming HOAs. As of 2021, there were over 358,000 neighborhoods in the country that had one.
One aspect of being in an HOA is paying HOA fees to live in that neighborhood.
Are you in an HOA in Land O' Lakes and wondering where your HOA fees go? This guide explains how those fees are determined and where the money goes.
One of the main things that HOA fees cover is daily tasks that are done by vendors around the community. If you live in an HOA, you have to come up with arrangements for things such as waste management.
Your HOA board could end up paying a company to bring a garbage truck to the neighborhood twice per week to collect that and recyclables.
Then, there are things done to improve curb appeal, such as landscaping. The average service here can cost up to $17 per square foot.
So, assuming that landscapers mow your lawn once every couple of weeks and take care of things like trimming trees and maintaining a garden, these costs can add up.
Then, there are funding amenities for the community, such as a swimming pool. Your HOA may decide that they need to hire a lifeguard for the summer. So, the wages for the lifeguard get taken from the HOA fees.
Another thing that you need to consider is what type of maintenance issues may pop up in your community. HOAs are typically responsible for the exterior of homes in the community and all of the common areas.
That means things such as pools, playgrounds, fences, roofs, etc., may all have unexpected maintenance issues come up at some point. An HOA may discover one year that the maintenance costs to keep things in the community in good shape cost them more than they expected. As a result, HOA fees may increase to make up for this.
Real Estate Value
Finally, you may run into a situation where the Land O' Lakes real estate value has simply increased. HOA fees may go up to keep up with this value as well as invest more money to continue to improve your community.
Let's say that houses went up in value by about $50,000 in just two years. With such a large increase, other things in the community may cost more money to maintain. HOA fees typically have to reflect the value of the homes and the community overall.
Keep an eye on your real estate market to see if you should expect an increase because of this.
Learn More About HOA Fees
These are the main things that you need to know when it comes to HOA fees. Know that a lot of the fees get puck back into the community.
That means making sure that daily conveniences such as waste management, landscaping, pool services, and more are covered. Also, a good HOA board will anticipate maintenance expenses and adjust the HOA fees accordingly.
Do you want to learn more about this? Message us here with your questions regarding HOA fees.