Roughly 66% of Colorado citizens are homeowners. Many of these homeowners live in homeowner's associations, often shortened to HOAs.
But what is the benefit of these associations, and what burdens do they come with? One of the main things to be aware of is the many types of HOA fees you may encounter as a member.
If you're curious to learn more about HOA costs, we're here to help. Read on to learn more about the different types of HOA fees and how much they may cost. We'll also look into the consequences of failing to pay your fees.
What Are HOA Fees For?
To start, what is the purpose of these fees?
HOA fees are most commonly issued to help pay for the costs of the building's common areas. These include patios, pools, elevators, lobbies, and landscaping costs. As such, HOAs with more amenities often charge higher fees.
Fees may sometimes be put in place as a punishment or for not following guidelines. However, these are more often called fines and are under a different sort of fee.
How Much Do Fees Cost?
The cost of fees can range dramatically depending on your location, the HOA, and what the fees are for.
Generally speaking, fees tend to be around $200 to $300. These fees are often collected monthly.
In some communities, HOA fees may be more expensive if repairs are necessary. For example, a strong blizzard may make some parts of the community inaccessible. The fees may increase that month to raise the money to have the problem looked at.
Variance in Price
While the above price is the average, there is a drastic range that these fees can be in.
For example, it isn't uncommon for fees to range up to $1,000. While this isn't likely, higher-end communities with larger properties may need to charge more. The higher price comes as a result of more amenities, more severe repairs, and more.
Additionally, fees can build up. Some HOAs may charge more depending on liens against your property, past experiences, and other factors.
Are There Consequences For Not Paying?
Since these fees are for the community, what happens if you don't pay? The punishment is often left up to the HOA board members.
Some HOAs may choose to bar your household from using the amenities. Since you aren't helping fund them, access is sometimes restricted.
In other cases, the HOA may expel you from the association and bar you from their benefits. Furthermore, they may levy additional fees that will remain on your property regardless of your membership in the HOA.
Managing Your HOA
HOA fees vary depending on your HOA, your location in Colorado, and more. You should communicate with your HOA board to see what types of HOA fees you'll need to pay. Expect to pay at least a few hundred dollars on a monthly basis, and do your best to make the most of the amenities this money pays for.
Curious to learn more about homeowner's associations? Contact us to see how we can help you today.