HOA fees for condos

Ask Phyllis: a blog series of frequently asked real estate questions.

HOA fees for condos

Dear Phyllis,

My son is looking at different condos and townhomes, and HOA fees vary widely. Why is there such a big difference, and what should be important to him as a first-time buyer? MJ

Dear MJ,

When I first started selling real estate, many associations managed themselves. Over time, however, most communities moved to professional management companies. As a result, the quality of management can vary widely. That’s one reason HOA fees for condos often differ from one property to another. When comparing HOA fees, remember that you’re often comparing apples to oranges. Instead, focus on what the fees actually cover. In many cases, you truly get what you pay for.

Typically, HOA fees cover maintenance for the building and shared spaces. For example, that may include roofs, exterior paint, landscaping, hallways, elevators, lighting, parking areas, and gates. In some communities, the fees also cover some utilities. Additionally, amenities such as a pool can increase maintenance costs. In general, if the community shares it, the HOA maintains it. Well-kept common areas make a property more enjoyable to live in. Just as important, they help protect long-term property values.

Another key factor is the association’s reserve fund. Each month, a portion of dues should go toward future expenses. These may include roof replacements, plumbing systems, structural repairs, or major exterior renovations. With strong reserves, the association can plan and pay for these projects over time. Without them, homeowners may face unexpected special assessments. At first glance, lower fees may seem appealing. However, they can be a red flag if maintenance has been delayed or reserves are underfunded. On the other hand, higher dues may signal a well-managed association with consistent upkeep and healthy reserves. That matters while you own the property—and when it’s time to sell.

As a buyer, don’t focus only on the monthly amount. Instead, review what the fees cover. Then look at the reserve levels and the HOA’s overall financial health. In the long run, a well-run association helps protect your investment, your lifestyle, and your peace of mind.