HOA Fees: Less is Not More
Homeowners association fees are designed to maintain the common areas of a residential community. Some companies use homeowner association fees to attract buyers, but researchers caution buyers to be wary of low fees. Analysts say that low HOA fees aren’t always a good thing, for Santa Clarita prospective buyers and homeowners.
What is the Purpose of HOA Fees?
The homeowners association serves the planned community by maintaining the grounds and common spaces of a given community. Condos, traditional single-family residences, and townhomes are managed by these organizations. The organizations assess monthly fees anywhere from $200 or $300 a month for community maintenance. The fees are assessed based on the size and features of the residence.
Risks of Low Association Fees
One of the most common tools used to draw in prospective buyers in Santa Clarita is the low homeowner association fee. While that may seem at first glance like a good thing, there are some drawbacks to reduced homeowner association fees.
If there is an emergency repair that is costly, it could be slightly more difficult to come up with the funds to manage that repair with existing reserves. The repairs can be made as needed, but homeowners get surprised with an expensive bill. The alternate route is to delay the emergency repairs as common areas run the risk of becoming neglected.
Pro-active maintenance responsibilities may lapse since emergency repairs are prioritized over pro-active maintenance. In a scenario where too many emergencies happen at one time, homeowners have to be held responsible for expensive bills since the reserves are low. Most emergencies can’t wait.
HOA fees should be kept at a level where the community is able to respond proactively to any emergency that may arise. Homeowners who are not prepared to handle an expensive bill for an emergency repair will recognize the importance in maintaining healthy reserves at all times, even if this drives up homeowners association fees.
National Property Management Group is Santa Clarita’s premier property management group with over 30 years of experience. We offer innovative solutions for those in the financial, administrative, and HOA business. Ready to experience what we can do for you and your business? Give us a call today and let us cater to your unique business needs.
National Property Management Group
25115 Avenue Stanford A300
Valencia, CA 91355