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.
It's a trade off, and for many people it's one that is well worth the regular HOA fees. Still, before you commit to the purchase of a condo or townhouse in a managed development it's important to understand how HOA fees are calculated, and what you should expect to get in return for your money.