What Do HOA Dues Cover?

They cover quite a bit, and they may not be much different than what you’d pay in a home over time.

So you’ve decided you’d love to live in a high-rise condo, but those monthly HOA dues might have you scratching your head. What exactly are those dues for? Each high-rise will be a bit different, and the exact coverage can and will vary. If the HOA dues seem high, consider how much you would pay on a single family home to maintain the structure and roof, monitored security, the yard maintenance, pest control and insurance. Then factor in utilities, trash water, etc. and what it would cost to join a gym and have access to a pool. You might find the monthly cost isn’t that much more than you’d pay for a comparably-priced single family home.

Let’s break down what they typically cover in a high-rise condo building:

1. Building Maintenance and Repairs: This is a biggie. High-rises have a lot of shared infrastructure. Think elevators, plumbing systems, the roof, hallways, stairwells, and more. Your HOA dues ensure these are kept in working order. And the older the building, the more it’s probably going to cost to maintain and repair.
2. Amenities: Fancy a dip in the pool or a workout in the gym? Many high-rises offer amenities like these, plus maybe a sauna, lounge areas, BBQ spots, or even a theater room. They’re not going to maintain or clean themselves, and that’s where your dues come in.
3. Utilities: In some cases, especially in high-rises, your dues might cover utilities for the common areas or even utilities for individual units, such as water, sewage, garbage, and sometimes even heating or cooling. Be sure to work with a broker who is knowledgeable about what each building’s HOA dues cover so you can do an apples to apples comparison.
4. Security: Just about every high-rise condo tower will have security monitoring systems and secure access systems for the entry and garage. Some even have 24/7 full-time security guards. Ensuring your safety and security in the building isn’t free, and a portion of your dues goes towards this.
5. Landscaping and Common Area Upkeep: Even if you’re living way up in the sky, the ground level still matters! Landscaping, the lobby, the gym, roof-top terraces or gardens—they all need care and maintenance.
6. Management and Staff: If you have a doorman, building manager, or cleaning staff, part of your dues helps pay their wages. Plus, managing a high-rise’s business affairs, like coordinating repairs and overseeing finances, often requires hiring professional management companies.
7. Insurance: The HOA will usually have a master insurance policy covering the building’s structure and common areas. Your dues contribute to this. (Note: this doesn’t replace the need for individual unit owners to have their own insurance policies for their finish out and liability.)
8. Reserve Funds: When you look at the HOA’s budget you’ll notice a big savings account of sorts called the Reserve Fund. This reserve fund is for big, future expenses or unexpected repairs like suddenly broken elevators, parking gates etc. The HOA doesn’t want to have go through the time and trouble of passing a special assessment for every little thing, so they keep this reserve as an emergency fund for the building.
9. Pest Control: Nobody likes uninvited guests! Regular pest control treatments in common areas and sometimes even individual units can be covered by the HOA dues.
10. Trash and Recycling Services: High-rise buildings have a lot of people in them, and a lot of people generate a lot of trash and recycling. Ensuring trash is picked up and providing recycling options are very important and typically covered in your monthly HOA dues.
11. Communication and Legal Services: Keeping residents informed, maintaining an HOA website, mailing notices, and even legal consultations or actions when needed are time consuming and costly. The HOA has to cover those costs which can add up.

Again, working with a real estate agent who knows the ins and outs of your local high-rise market is a must to be sure that you don’t miss anything and avoid any unwelcome surprises down the road.

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• HOA (1)
• Buying a High-Rise (1)