Whether you are buying your first home or relocating to a different community, one area that should be a focus is how well the homeowners association is doing financially. The HOA is responsible for certain areas and there are associations that neglect to repair what is wearing out due to insufficient funds.
In those homeowners associations, members have usually insisted on keeping HOA fees low; now most of them have moved and the remaining ones want the fees to remain unchanged. The HOA has some funds in the reserves but it is hardly enough to cover half the expenses.
It does not take long for the board to realize it can no longer afford to maintain the property and home prices start to drop. Often, homeowners complain on the homeowner association website as they blame the board for not properly managing the funds. Here’s why you should never set low HOA fees:
Some homeowners argue that the board should refrain from wasteful spending and go for the cheapest options. However, many goods and services are becoming more expensive each year. When you come across cheap products or services, there’s a greater possibility that the quality is also low. This might translate into higher long-term costs as cheaper items tend to wear out faster and need replaced.
A main objective of all HOA boards is to maintain the property of the homeowners association. When the board chooses lower fees, it might be viewed as them going against their legal responsibility to make decisions that are in the best interest of the association.
Occasionally, HOA’s elect new board members in hopes they will lower fees and assessments. On the contrary, the new board realizes an increase in fees is absolutely necessary in order to deal with the present financial difficulties. If you’re looking to avoid these issues, consider reasonable fees and notify homeowners why through the homeowner association website.