For many who want to build a custom home, a homeowner’s association (HOA) fee is a necessary line item to include in the monthly budget planning, just like a mortgage and homeowner’s insurance. If you move into a community governed by an HOA, you likely won’t have a choice to opt out of it, so it’s important to prepare by knowing how much the fee will be and how often it must be paid. However, HOA fees can cover some very beneficial services that you may not be aware of.

What Is an HOA Fee?

An HOA fee is a recurring due for membership in a homeowner’s association that governs a residential subdivision, condominium or planned community. Fees paid to the HOA cover the cost of services that benefit all its members, such as maintenance and upkeep of community amenities and common areas. Fees may also cover the management of the HOA, which typically is run by resident volunteers but may require the services of accounting and legal professionals, for example.

HOAs are especially common among residents of townhome and condo complexes, and gated communities where you can build a custom home. These neighborhoods nearly always share resources, such as a lobby, clubhouse or pool, which the HOA cares for.

The responsibilities of an HOA may also include enforcement of rules called covenants, conditions and restrictions (CC&Rs). A CC&R may dictate what color you can paint your house, what type of shingles you can install and whether you can put up a fence. When utilized appropriately, CC&Rs help to maintain a cohesive, appealing look within the community, keeping property values high and ultimately benefiting all homeowners.

Services Covered by HOA Fees

HOA fees can cover a variety of services that benefit the community, ensure safety and consistency, and lessen maintenance demands for homeowners.

Community Maintenance

HOA fees generally pay for the maintenance and upkeep of shared common areas to keep the neighborhood looking beautiful, such as:

• Landscaping, lawn care and irrigation of common areas.
• Snow removal, sidewalk shoveling and salting.
• Exterior building maintenance.
• Common area maintenance and cleaning.
• Weekly collection and disposal of trash and recycling.

Community Amenities

HOA fees may be used to provide amenities that can be enjoyed by all residents, including:

• Pool and clubhouse cleaning and maintenance.
• Inspection and maintenance of playgrounds, parks, basketball courts, tennis courts and other recreational facilities.
• Fitness equipment and its upkeep.
• Cleaning and stocking meeting rooms and event spaces.

Professional Services

Keeping a community running smoothly often incurs administrative expenses, such as:

• Accounting and legal services.
• Liability insurance for common areas and facilities.
• Property management fees.
• Reserve funds for emergency repairs and future maintenance.
• Miscellaneous administrative costs.

HOA Benefits You May Not Have Considered

Homeowners are sometimes turned off by real estate with an HOA due to the expense of monthly, quarterly or annual fees. According to Realtor.com, 44.6% of home listings in May 2025 included HOA fees, with the monthly fee for an HOA averaging $143. But exploring the unexpected benefits associated with an HOA can shine light on the great value that is often gained from the recurring fee.

Enhanced Property Value

HOAs play a crucial role in keeping property values high within a neighborhood. By enforcing CC&Rs associated with design, maintenance and upkeep, an HOA can ensure attractive curb appeal and prevent unkempt properties from having a negative impact on surrounding homes. In addition, an HOA can enhance property values by professionally maintaining common areas such as parks and pools.  

Fewer Surprise Maintenance Expenses

One of the great benefits of living in an HOA community is that it often keeps the costs of maintenance and repairs predictable. In a condo or townhome community, the HOA fee covers exterior maintenance of roofs, siding and landscaping, so homeowners aren’t faced with hefty repair bills at inconvenient times. HOAs usually accumulate reserve funds for major repairs, such as roof replacement. With an HOA, homeowners may not have to deal with the ongoing expense of lawn care in summer and snow removal in winter.

Lifestyle Amenities

Communities with exclusive amenities for residents tend to have higher property values. Many homeowners enjoy access to a swimming pool, fitness center, tennis court and other facilities they wouldn’t be able to afford without an HOA.

Insurance Savings

Owners of a home in an HOA may also benefit from reduced insurance costs since most HOAs carry master insurance policies to guard against damage to common property due to accidents, storms and other disasters, and liability for accidents and injuries on common property. This can lessen the amount of coverage homeowners are required to carry on their individual properties.

Build a Custom Home With Gateway

If you want to build a custom home in a local subdivision or move into an existing community, HOA fees are just one of many considerations. The Gateway team can help you navigate the process of building the home of your dreams within our service areas. Contact us today at (307) 632-8950 or complete our online contact request form if you are ready to discuss next steps.

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