When you purchase a home, there’s a good chance you’ll have to pay a homeowners association fee, especially in gated communities, townhouses, condominiums, and other similar planned neighborhoods. The idea is to keep common areas clean and maintained, and there’s usually an HOA board that is responsible for setting the rules and regulations.

Each HOA is different, but most have the same core elements. You’ll typically pay your HOA fees either monthly or annually, and it’s an important factor to consider when you’re weighing your options for a new home. So what is typically included in your HOA fees?

First, the fun stuff Amenities are typically the big perk of living in a community with an HOA. While you lose out on some of the freedom of living without an HOA, you instead get community amenities like a maintained pool, gym, clubhouse, tennis courts, and other amenities. The HOA fees pay for cleaning and maintenance, so—in theory—you’ll always have a clean pool whenever you want to use it.

Protecting the community HOA fees often contribute to insurance for the community amenities, as well as a fund for unexpected repairs to damaged community property—think damage from weather or accidents.

General maintenance Your HOA fees will go toward maintaining the general safety and upkeep of the community. This means things like elevator maintenance for condominiums, snow removal, and trash/recycling services.

Be active in the association There may be a board of directors, but homeowners associations exist for the betterment of the entire community, and every voice matters. HOA meetings—and the amenities they support—provide great opportunities to meet your neighbors and make your community a better place.

Homeowners and condo associations are great for buyers who don't want to be responsible for maintaining the exterior of their homes or their yards. That said, homeowners associations can also have restrictions that won't work for some home buyers - such as rental restrictions or pet weight limitations. If you're considering purchasing a home with homeowners or condo association, ask your Realtor to get a copy of the rules and regulations during the attorney approval period.  You'll want to review these rules, as well as the association's budget and cash reserves, to make sure you're making the best financial decision for yourself.

If you have any questions about purchasing a home with a homeowners association or condo association, feel free to reach out to our team of real estate experts - we're here to aid you in your entire home buying decision.