A homeowners association or HOA, is a set of rules, guidelines and typically a volunteer or paid management board or staff that manages these rules of a particular condominium building or complex. When a buyer purchases a condominium, townhouse or another property in a homeowners association they are obligated to join that community’s HOA and abide by the rules, typically paying monthly, quarterly or annual fee. Here are some things to know about homeowners Association and their dues.
HOA dues are typically between $200 and $800 per month depending on the Association, the amenities and the building. The more luxury or high-end the apartment or condo, the more expensive these dues are. They can also be required monthly, quarterly or annually. These monthly fees may also be in addition to a special assessment fee, which the Association could charge for if there is not enough funds in the reserve account for major replacements such as roofs, new elevators or siding.
All residents are required to pay these students and whether you rent or buy, someone is paying these monthly or annual dues. If you choose to rent a Panama City Beach condominium, most likely the owner is paying these dues but they may also be added into your monthly rental payment. Because you are using and utilizing all of the amenities of the Association you may be required to pay a portion of these dues.
Know the rules.
Homeowners associations will have CC&Rs, which stand for covenants, conditions and restrictions. These are the bylaws and rules of the Association that all homeowners and tenants must abide by. Make sure you get a copy of these when you are first interested in a property so that you understand them, answer any questions you have and will adhere to these rules in the future.
Understand the management, board and the meetings.
Make sure you ask what any current or past conflicts the Association may have had with homeowners or tenants, what is the process for resolving conflicts and if the homeowners association is under any lawsuits or have they been under lawsuits in the past. Of course, it may not be the associations fault due to a homeowner that decides to sue everyone but at least you understand the logistics behind it.
Is there any catastrophic insurance on the Association and the building?
Make sure you understand any and all of the details should anything happen to the building or the complex due to circumstances beyond your control such as weather. Make sure they have the proper insurance on the building so that you are kept safe. Also, it’s best to have your own insurance on the interior part of your property because the homeowners association will not cover the interior of your unit.
For more information or for answers to your questions on homeowners Associations, HOA dues and details feel free to call our agents at any time.