Why Homeowners Associations Should Charge HOA Fees

Updated February 8, 2022

It can be frustrating to deal with questions about HOA fees from homeowners. However, when you receive questions about why your association charges HOA fees or why they seem too high, it's important to remember what those fees do for your community. Association dues are a critical aspect of maintaining your community and growing home values!

Read more here about why your homeowners' association should charge fees with insights from one of the best HOA management companies in the greater Puget Sound area!

Why HOA Management Fees Matter

There can sometimes be a misconception among residents that homeowners association fees are punitive or a payment to be part of a neighborhood club. However, many HOA and condominium management boards that plenty of community members also understand the value of living in a community governed by an association and the fees that go along with it. 

An HOA management company can tell you that without collecting regular dues, your community loses value. There will not be funds for maintaining the quality of community resources, like swimming pools, playgrounds, fitness centers, or greenbelts. In addition, without fulfilling the annual budget through collected fees, your association may not be able to provide other valuable services, like security, trash collection, or landscaping for common areas. 

Many of these features are the reasons why Bellevue residents choose your community! If these resources fall into disrepair or close down, your neighborhood loses appeal, residents leave, and home values fall. Positioning the HOA management fee as a key element that drives the attractive features of your community can help homeowners understand why they're necessary to maintain the quality of life in the neighborhood.

What Should Fees Cover?

If you've been on your association board for any length of time, you've probably heard the question, "what do my fees pay for?" Your board should be ready to answer this question at any time and provide ongoing transparency about how fees apply to approved budget items every year. 

For many homeowners and condo associations, typical HOA management fees cover the cost of all aspects of property management and maintenance for common areas or community resources, accounting services, insurance costs, and legal costs. HOA dues also cover expenses like:

• Common areas and community amenities upkeep and cleaning
• Trash removal
• Fitness center operations
• Pest control for common areas
• Parking spaces
• Parks or green spaces
• Security 
• Community activities
• An onsite property management company or services

HOA fees or condo property management fees add value and security to the community and help residents come together. While association dues aren't punitive or admission to a "club," they are the price of admission to thriving communities governed by a board and rules that benefit the neighborhood. 

"I Don't Use Those Services."

You've probably heard this argument from residents who refuse to pay their HOA fees: "I don't use those services or amenities, so I don't need to pay dues." 

When people ask about ongoing management fees in communities that have amenities that they choose not to use, it can be difficult to help those residents understand why they still need to pay their annual dues to remain in the community. Residents need to understand that not every amenity will be used by everyone in a community—but there's a fee they agreed to pay when they purchased their home in the neighborhood. 

In many cases, residents don't always realize that while they might not use the fitness center or swimming pool, their required HOA dues help make the community into the place that attracted them there in the first place. So, as a board member, it's important to enforce fee collection for every resident consistently, whether they ever use the tennis courts or not. 

Opting Out Is Not an Option

Remember: allowing residents to opt out of paying HOA dues is not an option. By purchasing a property in the community, residents commit to the fees associated with living in the neighborhood. "Opting out" of association fees should only occur when a resident moves out of the community and sells the home.

An HOA Board Must Consider the Management Fee Carefully

While it's important to charge HOA management fees, the board should work diligently to plan budgets and expenditures in a way that keeps fees reasonable. While most associations have the flexibility to increase fees as needs arise, raising the costs of HOA dues too often or by too much can discourage community members and lead to people leaving the neighborhood. 

Boards must also maintain strict accounting measures and transparency with all fees, budgets, and expenditures. Working with an association or condominium management company can help your board develop excellent financial practices to account for every dollar accurately. 

HOA Management Companies Help Boards Manage Finances and Fees

It's not always easy to explain why association fees are important, but it can be worth the time and effort spent helping residents see the benefits of their HOA dues. When homeowners understand the value the board and association bring to their homes and quality of life, they feel better about the cost of living in the community! 

The team at Trestle Community Management helps homeowners association boards manage fees, association's reserve fund, budgets, and communicate with residents. Contact us today for more information on how we can help your community thrive with services from one of the best HOA management companies in the greater Puget Sound area!

Learn more about excellent association management! Get our free resource, the "Best Practices for HOA Operations: A Checklist."