Question:
When deciding if you should raise your quarterly HOA dues, should you should you take into consideration the HOA fees in surrounding areas?
If your HOA quarterly fees are the highest of all the surrounding communities, even those with more amenities, such as a gated community, should you continue to raise quarterly fees annually when you have sufficient money in your reserve fund?
Do extremely high HOA fees impact the sale of the homes in the community?
– Debbie
Answer:
Hi Debbie,
When deciding whether to raise quarterly HOA dues, it’s definitely important to consider the HOA fees in surrounding areas. Comparing your fees with similar communities can provide insight into whether your fees are competitive and justifiable. If your fees are significantly higher than those in nearby communities, especially when those communities offer more amenities (like gates, pools, or clubhouses), you may risk making your community less attractive to potential buyers. High fees can be a deterrent, particularly if residents feel they aren’t receiving value equivalent to what they are paying.
However, if your HOA truly needs to raise dues beyond the average in surrounding areas, you should do so. The HOA has a duty to meet the needs of the community. Sometimes, that means raising dues to meet the necessary expenses of the association. That said, if your reserve fund is adequate and operating costs are under control, consider holding off on increases or introducing smaller, more manageable hikes.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
