Do HOA Fees Cover Utilities?

Imagine this: You’ve just moved into a beautiful new condominium complex. The manicured lawns, the sparkling community pool, and the well-maintained common areas all contribute to the feeling that you’ve made the right choice.

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But as you settle in, a nagging question starts to form in your mind: “What exactly am I getting when I make an online payment for HOA fees anyway? Do they cover my utilities too?”

This question is more common than you might think. Homeowners Association (HOA) fees can be a significant part of your monthly housing expenses, and understanding what these fees cover is crucial for budgeting and making informed decisions about your home.

What Are HOA Fees?

Homeowners Association fees, often referred to as HOA dues, are regular payments made by property owners in a planned development such as a condominium complex, townhouse community, or single-family home subdivision. 

These fees are collected to maintain and improve the community, fund shared amenities, and cover various expenses related to the operation of the association.



HOA fees can vary widely depending on the community, its amenities, and its location. Some HOAs charge as little as $100 per month, while others in luxury developments can charge over $1,000 monthly. The amount you pay is typically determined by factors such as:

  1. The size and type of your property
  2. The amenities and services provided by the HOA
  3. The age and condition of the community’s infrastructure
  4. The financial health of the HOA

HOA fees are separate from your mortgage payment, property taxes, and homeowners insurance. They are an additional cost of homeownership that you need to factor into your budget when considering a property in an HOA community.

What Do HOA Fees Typically Cover?

What Do HOA Fees Typically Cover?

HOA fees can cover a wide range of expenses, but the specific items included can vary greatly from one association to another. Here are some common expenses that are often covered by HOA fees:

  • Maintenance of common areas: This includes landscaping, snow removal, and upkeep of shared spaces like lobbies, elevators, and hallways in condominium buildings.
  • Amenities: HOA fees typically cover the costs associated with maintaining and operating shared amenities such as swimming pools, fitness centers, tennis courts, and clubhouses.
  • Insurance: HOAs often carry master insurance policies that cover common areas and the exterior of buildings in condominium or townhouse communities.
  • Reserve funds: A portion of HOA fees is usually set aside in a reserve fund to cover major future expenses like roof replacements, repaving parking lots, or other significant repairs.
  • Management fees: Many HOAs hire professional management companies to handle day-to-day operations, and these services are paid for through HOA fees.
  • Security: Some communities provide security services, which are funded through HOA fees.
  • Trash removal: In some HOA communities, garbage and recycling services are included in the HOA fees.

But what about utilities? This is where things can get a bit more complicated.

Do HOA Fees Cover Utilities?

The short answer is: it depends. Whether or not HOA fees cover utilities can vary significantly from one community to another. In some cases, certain utilities may be included in your HOA fees, while in others, you’ll be responsible for paying all your utility bills separately.

Here’s a breakdown of how different utilities are typically handled in HOA communities:

Water and Sewer

In many condominium and townhouse communities, water and sewer services are often included in HOA fees. This is because these buildings typically have a single water meter for the entire building, making it impractical to bill individual units. However, this isn’t always the case, and in single-family home HOA communities, homeowners are more likely to be responsible for their own water and sewer bills.


Electricity is less commonly included in HOA fees. In most cases, each unit or home will have its own electric meter, and residents are responsible for their own electricity bills. However, there are exceptions, particularly in some older condominium buildings or in communities with unique energy setups.




Like electricity, gas is typically not included in HOA fees. Homeowners usually pay their own gas bills directly to the utility company. However, in some condominium buildings with central heating systems, gas for heating might be included in the HOA fees.

Internet and Cable

While not utilities in the traditional sense, internet and cable services are sometimes included in HOA fees, particularly in condominium communities. This can be advantageous as the HOA may be able to negotiate better rates with providers than individual homeowners could.

Trash and Recycling

As mentioned earlier, garbage and recycling services are often included in HOA fees. This allows for coordinated waste management throughout the community and can sometimes result in cost savings compared to individual trash service.

It’s crucial to understand that even if certain utilities are included in your HOA fees, this doesn’t mean they’re “free.” The cost is simply distributed among all homeowners in the community through the HOA fees rather than being billed individually.


How to Determine What Utilities Your HOA Fees Cover

To understand exactly what utilities, if any, are covered by your HOA fees, you should take the following steps:

  1. Review the HOA documents: When you purchase a property in an HOA community, you should receive a set of documents, including the Covenants, Conditions, and Restrictions (CC&Rs), bylaws, and rules and regulations. These documents often outline what is included in the HOA fees.
  2. Ask for an itemized breakdown: Most HOAs can provide an itemized breakdown of what your fees cover. This can be especially helpful in understanding how your money is being spent.
  3. Attend HOA meetings: Regular attendance at HOA meetings can provide insight into the association’s budget and any changes to the services or utilities covered.
  4. Speak with the property manager or HOA board: If you’re still unsure, don’t hesitate to reach out to the property manager or a member of the HOA board for clarification.

Check your utility bills: If you’re receiving separate bills for utilities, it’s a clear indication that these are not included in your HOA fees.

What to Do If Your HOA Fees Seem Too High

What to Do If Your HOA Fees Seem Too High

If you feel that your HOA fees are too high, especially if they include utilities, there are several steps you can take – while you continue to make online payments for your HOA fees on time (to avoid those fees!)

  1. Compare with similar communities: Research HOA fees in comparable communities to see if yours are in line with local norms.
  2. Review the HOA’s financial statements: Look for areas where costs could potentially be reduced.
  3. Get involved: Join the HOA board or attend meetings to have a say in budgeting decisions.
  4. Propose energy-saving measures: If utilities are included, suggest implementing energy-efficient upgrades to reduce overall costs.
  5. Consider negotiation: While it’s uncommon, in some cases HOA fees may be negotiable, especially if you can demonstrate that they’re significantly higher than those in similar communities.

HOA Fees and Utilities: Variations by Property Type

The relationship between HOA fees and utilities can vary significantly depending on the type of property you own. Let’s explore how this typically plays out across different types of HOA communities:


In condominium communities, it’s more common to see some utilities included in HOA fees. This is often due to the building’s shared infrastructure. For example:

  • Water and sewer are frequently included because there’s often a single water meter for the entire building.
  • In buildings with central heating or cooling systems, these services’ costs might be included in HOA fees.
  • Some older condo buildings might include electricity in the HOA fees, although this is becoming less common in newer developments.

However, even in condos, it’s rare for HOA fees to cover all utilities. Residents are typically responsible for their own electricity, internet, and cable services.


Townhouse communities often fall somewhere between condos and single-family homes when it comes to utilities and HOA fees. While they share some characteristics with condos, townhouses usually have more individually metered utilities. In townhouse HOAs:

  • Water and sewer might be included in HOA fees, but it’s also common for each unit to have its own water meter.
  • Electricity and gas are typically the responsibility of individual homeowners.
  • Trash and recycling services are often included in HOA fees.

It’s worth noting that in some townhouse communities, the HOA might cover exterior maintenance, including roof repairs. While not a utility, this can be a significant benefit affecting the HOA fees’ overall value proposition.



Single-Family Homes

In HOA communities consisting of single-family homes, it’s least common for utilities to be included in HOA fees. Homeowners in these communities are typically responsible for all of their own utilities, including:

  • Water and sewer
  • Electricity
  • Gas
  • Internet and cable

In these communities, HOA fees are more likely to go towards maintaining common areas, community amenities, and sometimes services like trash collection.

How are HOA Fees Calculated?

How are HOA Fees Calculated?

HOA fees are typically calculated based on a variety of factors, and understanding these can help you better appreciate what you’re paying for, whether utilities are included or not.

  • Square Footage: HOA fees are often calculated based on your unit’s square footage. Larger units typically pay higher fees.
  • Amenities: The more extensive and luxurious the community amenities, the higher the HOA fees are likely to be.
  • Age of the Property: Older properties might have higher HOA fees due to increased maintenance needs.
  • Reserve Fund Requirements: HOAs are required to maintain a reserve fund for major repairs and replacements. The amount needed in this fund can impact HOA fees.
  • Insurance Costs: The cost of the master insurance policy for the community is typically factored into HOA fees.
  • Utilities (if included): When utilities are covered by HOA fees, this obviously increases the overall fee amount.

The Impact of Location on HOA Fees and Utility Coverage

In areas with extreme climates, certain utilities might be more likely to be included in HOA fees. For example:

  • In very hot climates, central air conditioning might be included to ensure proper maintenance and efficiency.
  • In cold climates, heating costs might be included, especially if there’s a central heating system.

Urban vs. Suburban or Rural

Urban HOAs, particularly in high-rise buildings, are more likely to include some utilities in their fees due to the shared infrastructure. Suburban or rural HOAs, which often consist of single-family homes, are less likely to include utilities in their fees.

Local Utility Costs

In areas where certain utilities are particularly expensive, HOAs might choose to include them in the fees and attempt to negotiate better rates for the entire community.



HOA Fees and Property Taxes: A Common Misconception

HOA Fees and Property Taxes: A Common Misconception

One common question that arises is whether HOA fees cover property taxes. The short answer is no; HOA fees do not typically cover property taxes. Property taxes are assessed by local governments and are the responsibility of individual property owners.

However, there is one exception to be aware of: in some cases, HOAs may pay property taxes on common areas, and this cost is then distributed among homeowners through their HOA fees. This is more common in communities with extensive common areas or amenities.

It’s also worth noting that in some jurisdictions, HOA fees may be tax-deductible if they go towards certain types of maintenance or improvements. However, this is not universal and you should consult with a tax professional for advice specific to your situation.

Don’t Risk Now Paying Your HOA Fees!

Knowing what your HOA fees cover, including whether they include utilities, is crucial for making informed decisions about your home and your budget. While the specifics can vary widely from one community to another, here are some key takeaways:

  • HOA fees rarely cover all utilities, but may include some, particularly in condominium communities.
  • Water, sewer, and trash services are more commonly included in HOA fees than electricity or gas.
  • The type of property, location, and age of the community all play a role in determining what utilities, if any, are covered by HOA fees.
  • Always review HOA documents carefully and ask for clarification if you’re unsure about what’s included in your fees.



By being an informed and engaged homeowner, you can ensure you’re getting value for your HOA fees and make the best decisions for your home and your budget. 

Remember, if you have concerns about your HOA fees or what they cover, don’t hesitate to get involved in your community’s governance and make your voice heard.


Do HOA fees cover utilities?

HOA fees may cover some utilities, but it varies by community. Common utilities included in HOA fees are water, sewer, and trash removal. Electricity and gas are less commonly included. Always check your specific HOA documents for details.

What is the average HOA fee in the US?

Average HOA fees in the US can range from $200 to $400 per month, but this can vary greatly depending on location, property type, and amenities offered. Some luxury communities may have fees exceeding $1,000 per month.

How much HOA fee is too much?

There’s no definitive answer, as it depends on what’s included and the value you receive. Generally, if HOA fees exceed 1% of your home’s value annually, it may be considered high. Always compare with similar communities in your area.

Does HOA cover electricity?

In most cases, HOA fees do not cover electricity. Homeowners typically pay their own electric bills. However, there are exceptions, particularly in some older condominium buildings or communities with unique energy setups.

What does HOA cover for townhouses?

For townhouses, HOA typically covers exterior maintenance, landscaping of common areas, and sometimes roof repairs. It may also include some utilities like water and trash removal, but this varies by community.

Are HOA fees monthly or yearly?

Most HOA fees are collected monthly, but some associations may offer annual payment options. Check with your specific HOA for their payment schedule.

How can I get out of paying HOA dues?

Generally, you can’t avoid paying HOA dues if you live in an HOA community. Not paying can result in late fees, liens on your property, or even foreclosure. If you’re struggling financially, communicate with your HOA board about potential payment plans.


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