What Do HOA Fees Cover?

If you live in a community with an homeowners association or resident’s association, you may be required to pay a monthly or annual fee. These regular fees, often referred to as HOA fees, go towards maintaining and improving the common areas and amenities in your neighborhood. 

While nobody wants to pay yet another set of fees on top of their mortgage and property taxes, HOA fees can actually provide some valuable benefits for residents. The key is understanding exactly what HOA fees cover and whether or not you can tell that the fees you are paying are going towards worthwhile expenses.

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For those who oversee or operate HOAs, being able to communicate exactly what HOA fees cover is important for maintaining transparency and trust with residents. The last thing you want is for residents to feel like their fees are being wasted on frivolous expenses or hidden costs.

So, what exactly do HOA fees cover? And how can you create the best method for helping residents make HOA payments online? Let’s go through various areas that HOA fees typically cover to give you a better understanding.


What Do HOA Fees Cover?

Exterior Maintenance and Repairs 

One of the primary expenses covered by HOA fees is the maintenance and repair of the community’s exterior elements. These include roofing, landscaping, parking lots, and common areas such as parks or pools. These are essential services that help keep the community looking clean and well-maintained.

Painting and siding repair: HOA fees cover the cost of periodically painting and repairing the exterior of buildings to maintain a consistent and attractive appearance throughout the community. This may include power washing, caulking, and replacing damaged siding or trim.

Roof maintenance and replacement: The HOA is responsible for maintaining and replacing roofs on common buildings and, in some cases, individual homes. This ensures all roofs are in good condition and helps prevent leaks and other damage.

Gutter cleaning and repair: To prevent water damage and maintain proper drainage, HOA fees cover the cost of regularly cleaning and repairing gutters and downspouts.

Exterior pest control: HOA fees may cover the cost of treating the exterior of buildings for pests such as termites, carpenter ants, or rodents to prevent damage and maintain the community’s overall health.

Fence maintenance and repair: If the community has common fences or gates, HOA fees will cover maintenance, repair, and replacement as needed.

By pooling resources through HOA fees, homeowners can ensure that the community’s exterior remains well-maintained and visually appealing, which helps protect property values. This shared responsibility also relieves individual homeowners of the burden of independently arranging and paying for these services.



Landscaping and Groundskeeping 

HOA fees often cover the cost of maintaining common areas, such as lawns, gardens, and walkways. The more extensive the community’s shared spaces, the higher the HOA fee will likely be.

In addition to keeping these areas aesthetically pleasing, regular groundskeeping can also provide safety and security benefits. For example, well-maintained landscaping can deter potential intruders and prevent accidents such as slips and falls on uneven surfaces.

Regular mowing and edging: HOA fees pay for the labor and equipment needed to keep lawns mowed, edged, and looking neat.

Tree and shrub trimming: The HOA is responsible for pruning and maintaining trees and shrubs in common areas to promote healthy growth and maintain an attractive appearance.

Planting and maintaining flower beds: HOA fees may cover planting and maintaining seasonal flower beds or other decorative landscaping to enhance the community’s beauty.

Irrigation system maintenance: HOA fees cover the cost of maintaining and repairing irrigation systems in common areas to keep landscaping healthy and vibrant.

Sidewalk and pathway repair: HOA fees are used to repair cracks, unevenness, or other damage to sidewalks and pathways to ensure the safety of residents and maintain an attractive appearance.

HOA fees may also cover snow removal services in areas with cold winters to keep sidewalks and parking areas safe and accessible. This includes plowing, shoveling, and applying de-icing agents as needed.

Maintaining a well-kept and attractive landscape helps the HOA create a pleasant living environment for residents and protects property values by ensuring a consistent, appealing appearance throughout the community.

Amenities and Common Areas 

Many communities offer shared amenities that enhance residents’ lifestyles, such as:

Swimming pools: HOA fees cover the cost of maintaining and operating community swimming pools, including regular cleaning, chemical treatments, and lifeguard services if provided.

Fitness centers: If the community has a shared fitness center, HOA fees pay for the maintenance and repair of exercise equipment and the cleaning and upkeep of the facility itself.

Clubhouses: HOA fees are used to maintain and operate community clubhouses, including spaces for meetings, events, or recreational activities. This includes cleaning, repairs, and utilities.

Tennis or basketball courts: If the community has shared sports courts, HOA fees cover maintaining and repairing the surfaces, nets, and surrounding fences.

Playgrounds: HOA fees are used to maintain and upgrade community playgrounds, ensuring they remain safe and enjoyable for children. This includes regular inspections, repairs, and replacements of equipment as needed.

Walking trails: If the community has shared walking or biking trails, HOA fees cover the cost of maintaining and repairing the paths and any associated landscaping or lighting.

HOA fees are used to maintain, repair, and upgrade these facilities, ensuring they remain safe, clean, and enjoyable for all residents. This includes regular cleaning, equipment maintenance, and necessary repairs or replacements. By providing and maintaining these amenities, the HOA enhances the quality of life for residents and helps foster a sense of community.




HOA fees typically include insurance coverage for common areas and shared structures. This insurance protects the community from financial losses due to various risks, such as natural disasters, accidents, or injuries on common property. This coverage also benefits individual homeowners by reducing their personal insurance costs.

Property damage: HOA insurance covers the cost of repairing or replacing common buildings, structures, or amenities damaged by fire, severe weather, vandalism, or other covered events.

Liability: If someone is injured on common property or if the HOA is sued for any reason, liability insurance helps cover legal fees and any resulting damages or settlements.

Directors and Officers (D&O) insurance: This coverage protects HOA board members from personal liability related to their decisions and actions while serving on the board.

It’s important to note that HOA insurance does not cover individual homeowners’ properties or belongings. Homeowners are still responsible for obtaining their own insurance to protect their homes and personal property.


Sometimes, HOA fees may include certain utilities for common areas or even individual units. This can vary widely depending on the community and the specific setup. Common utilities that may be covered include:

Water and sewer: HOA fees may cover the cost of water and sewer services for common areas, such as landscaping or pools. In some condominiums or townhomes, these fees may also cover water and sewer for individual units.

Electricity: HOA fees may cover the cost of electricity for common areas, such as lighting in parking lots, walkways, or clubhouses. In some cases, electricity for individual units may also be included.

Trash and recycling: Many HOAs coordinate and pay for trash and recycling services for the entire community, which can help reduce costs and ensure consistent service.

It’s essential for homeowners to carefully review their HOA’s governing documents and budget to understand which utilities, if any, are included in their fees.



Reserve Funds 

A portion of HOA fees is typically allocated to a reserve fund, a savings account used to pay for future repairs, replacements, or improvements to common areas and shared structures. Some of the reserve funds will go toward:

  • Roof replacements
  • Parking lot resurfacing
  • HVAC system upgrades
  • Pool renovations
  • Elevator modernization

By regularly contributing to a reserve fund, the HOA ensures that sufficient funds are available for these large expenses without the need for special assessments or large increases in monthly fees.

Professional Management and Administration

Professional Management and Administration

Many HOAs hire professional management companies to handle the day-to-day operations and administration of the community. HOA fees cover the cost of these services, which can include:

  • Financial management and bookkeeping
  • Communication with homeowners
  • Enforcement of community rules and regulations
  • Coordination of maintenance and repair services
  • Organization of board meetings and elections

A professional management company can help ensure the smooth operation of the community and relieve the volunteer board of directors from many time-consuming tasks.

Other Services and Amenities

Depending on the specific community, HOA fees may cover many other services and amenities designed to enhance residents’ quality of life. Some examples include:

Security: HOA fees may cover the cost of gate attendants, security patrols, or surveillance systems to help keep the community safe.

Cable or Internet: Some HOAs negotiate bulk contracts for cable TV or high-speed internet services, which can be included in the monthly fees.

Pest control: HOA fees may cover regular pest control treatments for common areas or even individual units to help prevent infestations.

Concierge services: High-end or luxury communities may offer concierge services, such as package delivery, dry cleaning, or even pet-sitting, which are covered by HOA fees.



Social events: Some HOAs use some fees to organize social events, such as holiday parties, summer barbecues, or community garage sales, to foster a sense of community among residents.

The specific services and amenities covered by HOA fees can vary greatly from one community to another, so it’s essential for potential buyers and current homeowners to carefully review their HOA’s governing documents and budget to understand what is included.

Tips for Maintaining Transparency as an HOA Board or Director

Transparency is crucial for building trust and fostering a positive relationship between the HOA board and the community’s residents. When you can’t easily see or understand how the HOA fees are used, it can lead to frustration and distrust among homeowners. Here are some key ways to maintain transparency as an HOA board or director:

Regularly communicate: Keep homeowners informed about the HOA’s activities, decisions, and upcoming events through newsletters, emails, or a community website. Provide updates on projects, budget status, and any changes to rules or regulations.

Hold regular, open meetings: Hold regular board meetings that are open to all homeowners. Encourage attendance and participation by providing advance notice and making meeting agendas and minutes available.

Strive for financial transparency: Share the HOA’s financial information with homeowners, including budgets, reserve fund balances, and expenditures. Explain any significant changes or variances from the budget.

Encourage and respond to feedback: Actively seek input and feedback from homeowners on important issues, such as proposed rule changes, major projects, or amenity upgrades. Consider conducting surveys or holding town hall-style meetings to gather opinions.



Respond quickly to any questions: Respond promptly and professionally to homeowner questions, concerns, or complaints. Provide clear explanations and follow up as needed to ensure a satisfactory resolution.

Make easily accessible all governing documents: Make the HOA’s governing documents, such as the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), bylaws, and rules and regulations, easily accessible to all homeowners. Consider providing them on a secure website or online portal.

Build a conflict of interest policy: Develop and adhere to a clear conflict of interest policy for board members to ensure that decisions are made in the best interest of the entire community.

By maintaining transparency and open communication, HOA boards and directors can build trust, foster engagement, and create a more harmonious living environment for all residents.

The Role of HOA Software and Online Payment Systems

The Role of HOA Software and Online Payment Systems

While it may seem that HOA boards and directors have endless responsibilities to manage, technology can be a valuable tool in making their jobs easier. HOA software and online payment systems can streamline processes and increase efficiency for both the board and homeowners.

Some of the key features that HOA software can offer include:

  • Financial management: HOA software can help streamline financial processes, such as budgeting, accounting, and financial reporting. This makes it easier for the board to track expenses, manage reserve funds, and provide accurate financial information to homeowners.
  • Online payments: Allowing homeowners to pay their HOA fees and assessments online through a secure portal can simplify payment and reduce late or missed payments. This also provides a clear record of transactions for both the HOA and the homeowner.
  • Communication tools: Many HOA software platforms include communication tools, such as email blasts, text messaging, or a community website, which can help keep homeowners informed and engaged. Board members can easily share updates, announcements, and important documents with the community.
  • Work order management: HOA software can help manage maintenance and repair requests by allowing homeowners to submit work orders online and enabling the board or management company to track the progress of each request.
  • Document storage and access: HOA software often includes a secure document storage system where important files, such as governing documents, meeting minutes, and contracts, can be easily stored and accessed by board members and homeowners.
  • Voting and surveys: Some HOA software platforms offer online voting and survey tools, which can help gauge homeowner preferences and make important decisions more efficiently.
Invest In HOA Fee Transparency With HOA Software

Invest In HOA Fee Transparency With HOA Software

Knowing exactly what you are paying for—and where those payments are going—can make a big difference in your satisfaction as a homeowner. HOA software can provide transparency regarding HOA fees, giving homeowners access to real-time financial reports and budget information.

Whether you are a resident voting on budget proposals or a board member approving expenses, having clear and organized financial information can help ensure that everyone is on the same page and that decisions are made in the community’s best interest.

Check out the top options for HOA websites and consider investing in transparency for your homeowner’s association. With easy access to financial information, everyone can have a better understanding of the HOA’s financial health and can work together towards a common goal of maintaining a thriving community.

Get started today

HOA Start software and our community website support provide all the tools you need to operate your association efficiently and effectively. Are you ready to take the next step? Join the network of HOA Start customers and share the success with your community. Call 863-462-7483 to speak with a team member, or click here to send us an e-mail message today.

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