HOA vs Condo Fees: What's the Difference?
Many types of homes now come with HOA or Condo fees including townhomes, duplexes, and even single family detached houses. So what do these fees include and what’s the differences between them?
HOA Fees
HOA is the abbreviation for Homeowners Association. An HOA sets property rules and has a board of directors that makes decisions and sets the costs. These are mandatory payments made on a monthly, quarterly, or annual basis and are divided equally between all owners.
These funds typically pay for:
- Landscaping/lawn maintenance
- Snow removal
- Upkeep/maintenance on common spaces (ex. Courtyard/gazebo)
Owner’s part of an HOA own both the inside and outside of their home, meaning they must pay for their own repairs and upgrades. Even though they own the exterior, owners must still receive board approval for exterior changes/upgrades.
Condo Fees
Condominium Fees refer to the monthly costs associated with owning a unit within a large residential building. These units all share walls and common spaces within the building. Condo fees are determined by a property management company and are usually divided based on unit size, so those with higher square footage will pay more.
These funds typically pay for:
- Landscaping/lawn maintenance
- Snow removal
- Upkeep/maintenance on common spaces (ex. Lobby, rec room, gym)
- Recycling/trash removal
- Master insurance policy (doesn’t include individual unit insurance/tenant insurance)
- Parking lots
- Building security features
As you can see, Condo fees are typically more expensive due to the extra services/shared amenities in the building. Condo owners own the inside of their units however any exterior damages are seen as a risk to the integrity of the building/property and repair costs are covered by the condo fees.
Where a Realtor’s Expertise Matters
When making a decision on a potential home that includes HOA or Condo fees, your Realtor’s expertise is an important asset. They will check the Title and Condo docs to ensure the previous owner has kept up with their payments.
Based on the contract in place, owners who fail to make their HOA/Condo payments can face consequences such as late fees, loss of privileges, a lien placed on their property, or even a potential lawsuit.
I think we’ve all heard those scary stories of people suddenly owing thousands of dollars after taking possession! When these kinds of issues are missed, it can leave the new owner with the unexpected cost of covering delinquent payments from the previous owner. Having a knowledgeable Realtor is a key factor in making an informed purchase!
Get in touch with one of our Realtors today!