Holding a home comes with different references, especially when exploring various properties. Townhomes, which offer a mix of private homeownership and shared community living, often raise questions regarding Homeowners Association (HOA) fees. This guide will deliver insight into how these fees work and what they generally cover.
In most cases, yes. Townhome communities generally have HOAs, though exceptions exist, particularly in older neighborhoods. However, the presence of an HOA is far more common, as it helps maintain shared spaces and upholds the community’s overall appearance.
HOA fees usually contribute to the following services:
• Landscaping of communal spaces
• Keeping shared facilities (such as pools, clubhouses, and playgrounds)
• Trash collection and snow disposal
• Periodically, exterior maintenance of buildings, though this depends on the detailed HOA agreement
Unlike condominiums, townhome HOA fees usually do not cover the interior or main exterior structure of an individual unit. Homeowners are generally responsible for those expenses.
Although it is widespread, not every townhome has an HOA. Some older communities may not have a governing association. However, in most modern developments, an HOA is a standard feature.
Location, size, and amenities all affect the price of a townhouse. Similar variations in HOA fees depend on:
• Location: Increased cost of living areas can translate into higher raised HOA rates.
• Amenities: Usually, neighborhoods with complete facilities—such as pools and exercise centers—demand more money.
• Maintenance Needs: The general cost depends on the degree of services rendered by the HOA.
When looking at a townhouse, you have to consider HOA costs with the buying price.
There are a few areas to consider when looking for affordable townhomes:
• Location: Suburbs tend to be more affordable than city centers.
• Age of the development: Older townhome communities may offer lower price points and HOA fees.
• Size and amenities: The smaller the townhome and the fewer amenities it has, the more affordable it tends to be.
If considering affordable townhomes, always request a full disclosure of HOA fees and their details.
• Examining HOA Documents: The rulebook of the HOA is its C&Rs, or covenant, condition, and restriction book. They outline your rights to use your property—that is, your rights to keep pets, make exterior modifications, and park. Before you purchase a townhouse, always be sure you review the CC&Rs.
• Bylaws: Usually covering how meetings are handled, how the board is chosen, and how decisions are made, these papers help to control the interior operations of the HOA.
• Financial statements : Ask for and go over the financial statements of the HOA. Whether the association has reserve money for future repairs and maintenance, that will indicate its financial situation. A good reserve fund lessens the possibility of exceptional assessments.
• These are additional fees levied on homeowners to cover unexpected or significant expenses that the regular HOA fees don’t cover.
• Examples include major roof repairs, unexpected landscaping projects, or legal fees.
• Understanding the HOA’s financial health can help you anticipate potential special assessments.
• But although HOA fees may seem like another item on your expense list, they come with numerous perks:
• Maintained Property Values: By ensuring that homes and properties are well-maintained, HOAs help maintain the community’s appearance, thus potentially preserving, if not increasing, property values.
• Community Amenities: HOA benefits may include access to local amenities such as pools, gyms and playgrounds.
• Dispute Resolution: HOAs can mediate disputes between neighbors.
• Convenience: HOA amenities such as landscaping and snow removal can give you more time.
• What are the specific HOA fees and what do they include?
• How frequently have HOA fees increased historically?
• What is the HOA’s financial health, and are there adequate reserve funds?
• Are there any planned special assessments?
• What are the CC&Rs and bylaws, and may they restrict me?
• The state of parking?
• What are pet rules?
• How would one go about altering the house’s outside?
• Budgeting depends on knowing what HOA fees cover; townhouse ownership includes a regular cost.
• Examining “townhouses for sale near me” should always include a consideration of HOA expenses.
Knowing these features can help you decide whether or not a townhouse is the next dwelling you want.
