Understanding HOA Fees: What Do They Cover and How Are They Calculated?

Understanding HOA Fees: What Do They Cover and How Are They Calculated?

If you live in a Houston, TX HOA community, you know that paying fees is just part of life. According to recent data, over 75 million Americans live in HOA communities.

When it comes to HOA fees, what exactly do they cover, and how are they calculated?

We're here to help you find the answers to these questions and more, so read on to find out what these fees mean when it comes to HOA living.

Property Repairs and Maintenance

Although HOA fees won't help you pay to fix a broken appliance, for example, they do cover outdoor repairs and maintenance. Make sure you look at your HOA community guidelines to find out what type of maintenance your fees cover.

In many cases, the HOA board will allow fees to pay for things like snow and trash removal. They may also cover landscaping and maintaining common areas and amenities. For example, your fees should include the maintenance of parks, gyms, tennis courts, and other areas shared by the community.

HOA Fees: Insurance

Every HOA community member should have their own homeowner's insurance policy. HOA fees will cover additional things such as liability.

If someone were to become injured in a community area, the insurance protects the community from a lawsuit. While you should still get your own insurance to cover your home's structure and personal belongings, this community insurance is also an important part of living in an HOA.

Administrative Costs

Running an HOA requires time, effort, and money. The HOA fees may cover the cost of administrative fees such as printing and handing out newsletters and holding HOA board meetings. They may also cover smaller things such as the cost of postage stamps to send mailers to HOA members.

Other administrative costs include accounting and paying for maintenance workers' salaries. Make sure you read the details of your HOA community guidelines to find out exactly what type of admin. fees your HOA costs help to cover.


Depending on the HOA property, your fees might also help to pay for the cost of utilities in common areas. If the community has a gym, then your fees help to keep the lights on and the HVAC system running.

In private communities, the fees usually also pay to keep the street lights on. How much of the fees go to cover utilities often depends on the type of community you live in and what type of amenities are provided. If you're ever unsure about what your HOA fees cover, ask the HOA board for more details and clarification.

Enjoy HOA Living

Living in an HOA property comes with lots of perks, and your HOA fees help to make it possible. Always make sure you're clear about what your fees cover so you can enjoy living in your HOA community with confidence.

If you need help with property management in the Houston, Texas area, PMI Fine Properties can help. Simply contact us to schedule a consultation or to find out more about our services.