How HOA Condo Fees Can Increase: What to Expect

When you purchase a condominium, you become part of a Homeowners Association (HOA) and are required to pay monthly or annual fees. These fees cover the cost of maintaining common areas, amenities, and sometimes even utilities. However, these fees can increase over time, and it’s important for condo owners to understand why and how this can happen. In this article, we will explore the factors that can lead to an increase in HOA condo fees and what you can expect.

Why Do HOA Condo Fees Increase?

There are several reasons why your HOA condo fees might increase. These include:

• Inflation: Just like everything else, the cost of goods and services increases over time due to inflation. This means that the cost of maintaining the property will also increase, leading to higher HOA fees.
• Unexpected Expenses: If the HOA encounters unexpected expenses such as emergency repairs or legal fees, they may need to increase the fees to cover these costs.
• Reserve Fund: The HOA is required to maintain a reserve fund for major repairs and replacements. If the reserve fund is insufficient, the HOA may increase the fees to build it up.
• Improvements: If the HOA decides to make improvements to the property such as adding amenities or upgrading facilities, they may increase the fees to cover these costs.

How Much Can HOA Condo Fees Increase?

The amount by which HOA condo fees can increase depends on the HOA’s governing documents and state laws. Some HOAs have a cap on how much they can increase the fees each year, while others do not. It’s important to review your HOA’s governing documents and consult with a real estate attorney if you have questions about this.

What Can You Do If Your HOA Condo Fees Increase?

If your HOA condo fees increase and you’re concerned about the additional cost, there are a few steps you can take:

• Review the Budget: Ask to see the HOA’s budget to understand why the fees are increasing. If the increase is due to unnecessary expenses, you can voice your concerns at the next HOA meeting.
• Attend HOA Meetings: Attending HOA meetings gives you a chance to voice your concerns and vote on important issues, including fee increases.
• Run for the Board: If you’re unhappy with the way the HOA is being managed, consider running for a position on the board. This will give you more control over decisions that affect your fees.

In conclusion, while HOA condo fee increases can be a cause for concern, understanding why they occur and what you can do about it can help you navigate this issue more effectively.