What Do Your HOA Fees Actually Cover?
Everyone knows that part of being an HOA member is paying community dues. Whether the payments are monthly or annually, they must be paid in order for your association’s board to put the money towards community projects and maintenance.
Many owners view HOA fees as a negative item and feel that their money only goes towards filling someone else’s pockets. Fortunately, that’s not the case, and the team at Excel Association Management is prepared to dig into the details.
Here’s a closer look at what your HOA dues actually cover and why it matters to pay them on time!
An Overall Sense of Community
Every neighborhood has its unique qualities, but not every neighborhood has the sense of community that an HOA offers. Associations plan out community events, work closely with their owners to make the area as comfortable as possible, and provide the comfort of a private neighborhood setting.
Your association dues may seem like an excessive payment, but the reality is that through your dues, you are ensuring a place within a planned community where your family can grow and thrive.
Your association management hires vendors to maintain your community. Association dues are the crux of how these vendors get paid. So, when you receive your next dues payment invoice, keep in mind that your money is going towards some of the following essential maintenance projects:
- Pool maintenance
- Management services
- Utility payments for your community common areas
- Common area pest control
- Common area fire alarms
- Community security services
Amenities You’ve Come to Love
If you live in an association, then you already know that the amenities are some of the biggest reasons to love your community. From swimming pools to community parks and private gyms, there is always something for you to enjoy.
HOA dues are essentially your ticket into the exclusivity of your association’s amenities. Not only do they help upkeep the property, but they also help pave the way for newer and greater entertainment possibilities for your family and future owners.
Insurance is one of the most important areas where dues are allocated. Typically, HOA dues pay for insurance coverage for common space property protection and community hazard and liability coverage.
What About Special Assessments?
After a natural disaster or in the wake of an urgent community project, there may be times where an unexpected fee is added to your owner’s dues. After all, your budget for the year has already been mapped out, so unexpected circumstances could require the use of special assessments.
The situation really all lies in how well your management team has collected dues over the years and what the levels of delinquency are. Nobody wants to impose special assessments on their community, but if members aren’t paying or the damages lead to a large deductible, your association may not have the funds to cover emergency projects.
Excel Association Management Distributes Dues Where They Count!
If you are a new member of your association’s board of directors and have questions about how to distribute your community dues, the management team at Excel can help!
Excel Association Management is a team of industry professionals that specialize in helping board members behind the scenes with proper management practices. Our experience with finance, vendor management, and collection tactics makes us one of Dallas’s most coveted management teams.
If you’re ready to make your association one that attracts new owners and retains current members for years to come, contact us today to learn more about our services in communities like yours.