When moving into your own condominium unit or home, you may see an additional bill alongside your mortgage. Both homeowners associations and condo associations collect fees to support and maintain shared community areas. While similar in nature, they should not be considered the same. So, what is the difference between HOA and condo association fees?
How Fees are Calculated
For HOAs, each homeowner pays the same amount to maintain the shared community areas. If there are a mixture of single-family homes and townhouses, the owners of the townhouses will pay a different percentage than the single-family homes. For a condo association, fees are based on the size of the unit. The larger the unit, the larger the portion of association fees that must be paid.
The Amount for Fees
When comparing, a prospective homeowner may notice significant differences in the price which makes them ask exactly what is the difference between HOA and condo association fees. Since fees pay for the upkeep of the buildings and the shared common areas, condominium fees tend to be more expensive than HOA fees.
On top of covering maintenance of the buildings, condominium association fees must cover:
Pools and Gyms
When looking at a new home, the mortgage is an important aspect to keep in mind, but remember to research for underlining neighborhood fees that can increase your monthly payments.