HOA and Condo Fees: What They Cover and 7 Red Flags to Watch For
Daniel ParkNo. 143
Updated
Key takeaways
- HOA and condo fees pay for shared upkeep, amenities, insurance and savings for future repairs.
- In Virginia, buyers receive a resale disclosure packet and usually have three days to review it and cancel.
- Healthy reserves are the best sign of a well-run association.
- Low fees aren’t always good if the association is underfunded.
Association fees are part of your monthly cost, just like your mortgage. Understanding them protects you from surprises.
What fees usually cover
| Item | Condo | Townhouse HOA |
|---|---|---|
| Common area upkeep and landscaping | Yes | Often |
| Exterior and roof | Usually | Sometimes |
| Master insurance policy | Yes | Sometimes |
| Water, sewer or trash | Sometimes | Sometimes |
| Amenities like pools and gyms | Often | Often |
| Reserves for future repairs | Yes | Yes |
7 red flags
- Low reserves compared with upcoming repairs.
- A recent or planned special assessment.
- Large fee increases year after year.
- Pending lawsuits involving the association.
- High delinquency, meaning many owners behind on dues.
- Strict rental limits if you might rent later.
- Deferred maintenance you can see on a walk-through.
Daniel’s tip: Ask for the most recent reserve study. It shows what big projects are coming and whether the association has saved enough for them.
Want help reviewing a resale packet before your deadline?
Frequently asked questions
Can HOA fees go up?
Yes. Most associations adjust fees annually based on their budget.
Do private streets affect HOA fees?
Yes. See Who Maintains the Road?
Filed under Buying a Home
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