Property Management – Calabasas – HOA Benefits
Homeowner Fees Come With Benefits
As professionals who regularly work with homeowners associations, we wish to comment on the article “Maintenance Fees Put Squeeze on Some Triad Home Sellers”.
Without question, the additional costs associated with any home (maintenance, water, taxes, cable, etc.) can stretch or break a monthly budget. However, focusing just on the expense of association fees overlooks the benefits those same fees bring to the owner—enhanced property values, desirable amenities, various services, and a more pleasant neighborhood.
In maintenance-free communities, monthly fees (or dues) will be greater. So will the benefits, which can include exterior maintenance and repair, club membership, landscaping, mowing, and pool membership, to name a few. Other homeowners often have these same costs, but must pay the higher water, trash collection, grass cutting, roofing and other maintenance bills directly. Because of “strength in numbers,” a homeowner’s one payment to the association each month is likely to be much cheaper than paying these expenses separately.
Also, homeowners generally defer major expenditures until absolutely necessary, and then must figure out where to obtain the funds. Homeowner associations are obligated to plan for future expenditures, which can be factored in to current fees. Many associations invest the monies for these future major repairs to increase the funds available when needed, something that individual homeowners may find difficult or impossible to do.
In the past few years, housing maintenance and operating costs have risen dramatically since associations have a legal obligation to provide and administer certain services, these increased costs must be passed through to the members.
While anyone can complain about monthly fees, most homeowners in associations find the experience a good one. A Zogby poll last year found that 71% of randomly selected adults in homeowners associations rated their overall experience as “positive.” This same survey asked: “Considering your overall assessments and the services provided by your association, how would you describe the return for what you pay in assessments?” 80% responded “great” or “good.”
When looking at a community, it is important to consider different levels of service. Some communities offer comprehensive building maintenance, yard service (to both common and individual areas), sophisticated recreational amenities (golf courses, marinas, and/or swim teams), blanket insurance coverage, payment of utilities (cable, internet, or Wi-Fi), and even social and/or daycare programs. At the other end of the spectrum, some communities only offer common area grass cutting at the entrance. Neither HOA is “better,” but simply offer different lifestyle approaches. Making certain the level of service (and associated costs) matches ones desires and needs is likely to lead to a better community association experience.
Compared with other markets, our state is only now beginning to experience explosive growth in community associations. With additional exposure, both sellers and potential buyers will understand and appreciate the collective value a homeowners association can bring.
Paul Mengert
Association Management Group, Inc.
Jim Slaughter
