Are you looking to lower your HOA fees?
Homeowners Association dues vary greatly, from $100 to $1,000 each month. If you are nearer the maximum, saving money is your primary focus. However, without proper knowledge, you will have no idea what to do.
The good news is our guide can help. Read on as we discuss some ways to reduce your HOA dues and spend your money on other investments.
What Are HOA Dues?
A Homeowner Association aims to protect property values. It is common to residential areas with shared spaces and amenities. For example, if your neighborhood has public parking garages and a swimming pool, the HOA will manage them.
The HOA will usually have a board of volunteers living in the community. In most cases, buying a house within a specific community makes you a member. Some exceptions exist, such as living in the area before the HOA came into existence.
Once you become a member, you have to pay either monthly or yearly dues. These fees are for funding the HOA operations. It will also cover neighborhood maintenance services, such as:
- Lawn mowing
- Street cleaning
- Snow shoveling
- Gutter maintenance
These fees also cover the amenities, like the ones stated beforehand. In some cases, your HOA dues will handle some of your bills, like garbage collection.
How to Lower Your HOA Fees
Your HOA may increase its fees. It could become unbearable because of your various financial strains, such as healthcare costs. The good news is you have some ways to lower your HOA dues.
Review the HOA’s Contracts
Often, your HOA has agreements with various vendors. These include landscaping companies and property management companies. Some of these contracts may be years old, meaning they need updates.
Often, vendors are willing to negotiate to swing the favor toward your HOA. To access these contracts, consider asking your HOA for permission. The best move is to become part of the board and gain enough power.
Reduce Landscaping Costs
Is it impossible to find other landscaping companies for your neighborhood? If so, consider asking the HOA to reduce the frequency of their visits. You might negotiate a better price without endangering aesthetics.
Look Whether the HOA Pays Excessive Property Management Fees
Are you living in a large condo? If so, you will have more luck reducing your HOA dues statement with your property management company. Talk to the board members of the HOA to explore ways to reduce their fees.
If you are a new owner, consider hiring a condo inspector. They will check your unit to determine whether the HOA fees are excessive compared to the quality of your home.
Homeowners Associations have reserve funds for covering unexpected fees. Check whether the funds have a healthy amount. Find out whether your HOA has major projects planned.
Satisfying these conditions means you can negotiate for a temporary fee reduction.
Reduce HOA Fees Now
These are some methods to reduce your HOA fees. Use these tips to stabilize your finances without compromising your neighborhood.
Did you find this guide helpful? If so, read our other posts and discover more valuable tips and tricks today.