Mark Burns is Associate Professor in the Department of Political Science and former Director of the Health Administration Program at Auburn University.
HOA fees are based on a variety of things. The management association bidding to run an HOA determines the hard costs of things like utilities, landscaping, pool maintenance, administrative costs like attorney fees, billing and postage plus any other required overhead.They then add on their profit margin for servicing the account.he management association bidding to run an HOA determines the hard costs of things like utilities, landscaping, pool maintenance, administrative costs like attorney fees, billing and postage plus any other required overhead. They then add on their profit margin for servicing the account.
If the reserve is too low, the fees will go up to cover the repairs as they are required. If the fee increases are voted against, the condos will be poorly mantained. The inspection and review of the condo associations mantainence records and reserve account can give you a good idea of what to expect in the way of changes to the HOA fees.