More than one-quarter of the U.S. population lives in a community governed by a homeowners association (HOA). This popularity reflects the many benefits of living in these neighborhoods. These include security measures, amenities, and grounds upkeep, which help retain home values.
HOAs need money to fund these features. That is where HOA fees come in. HOA boards must decide on the appropriate amount and how funds are spent.
This article covers everything you need to know about Winston-Salem property fees. Keep reading to find out how best to structure and use them in your neighborhood.
What Are HOA Fees?
HOA fees are also known as "homeowners association dues" or "assessments." They are regular payments made by residents of a neighborhood or condo association. They are usually set on a yearly basis, though many HOAs collect them monthly or quarterly.
What Services Do HOA Fees Support?
HOA boards can structure and spend fees however they choose. However, there are some basic categories that most neighborhoods deem appropriate.
A major one is the maintenance of common areas. This includes landscaping and lawn care, as well as streets, sidewalks, gates, and parking lot maintenance. They can pay for shared services, like trash or recycling collection, along with sewer or utilities.
This also can extend to the upkeep of amenities, such as swimming pools, gyms, tennis courts, or clubhouses. HOA fees also can fund community improvement projects.
Funds can be used for pest control or repairs for communal buildings. They can pay for liability insurance to protect against lawsuits based on injuries on the property.
HOA fees often go toward administrative costs. These include salaries of property management staff, as well as accounting, legal, or financial services.
How Much Are HOA Fees?
HOA fees can vary a great deal, though most are between $100 and $400 a month. This all depends on the type of property and where you live. A region with a high cost of living will likely have higher fees to be able to afford services.
HOA fees are also greatly impacted by the amenities a neighborhood provides. For instance, if residents have access to amenities like pools, gyms, tennis courts, or golf courses, HOA fees are likely to be much higher.
What Happens If Residents Do Not Pay HOA Dues?
Since the neighborhood relies on fees from all residents to fund the services mentioned above, it is vital that everyone chips in. This is part of the HOA contract that residents sign when they buy or rent a house in the neighborhood.
In most cases, HOAs will levy late fines for residents who do not pay their dues. If necessary, they could also bring a lawsuit against the resident. In rare instances, this could result in an HOA lien on the property or even a foreclosure to collect delinquent payments.
Learn More About HOA Rules and Regulations
Now that you understand HOA fees and their functions, you can put appropriate policies into place. A Winston-Salem real estate management company can further advise you on how to structure and collect these important funds.
PMI of the Triad provides comprehensive property management in Winston-Salem, Greensboro, High Point, and the surrounding areas. We offer a variety of services, including HOA management and board resources.
Reach out to us today to learn more.
