Condo HOA fee getting out of hand. Should i sell?

[The motor guy]

So in my mind, without knowing what hazard zone your in, etc - $6000 annually for exterior insurance, exterior maintenance, and liability especially if you have amenities like a pool - doesn't sound crazy. It likely also includes county property taxes? I guess you would need to compare around, but realize whatever you pick might start going up as soon as you move in.

The books must be transparent by law anywhere I have been. Ours are posted on website that requires a login.

No it doesnt include property taxes either, but $500/month is about the going rate in the area. Not sure whynit was so cheap when I moved into the place in 2018. Yeah im in a hurricane zone, but the place is on stilts, so that takes out the flood insurance aspect.

 

[SC Maintenance]

No it doesnt include property taxes either, but $500/month is about the going rate in the area. Not sure whynit was so cheap when I moved into the place in 2018

Find out who is on the board and ask.

I can think of dozens of reasons. Such as the insurance was much cheaper. Or they had a surplus in the maintenance fund back then and didn't need to collect more, but now they do? Or there is some future planned expense - like you need a roof in 5 years. Whomever is on the board would likely to be happy to tell you. Usually they publish minutes, and the full budget, but I am used to single family home HOA's with 500+ houses, so maybe small HOA's are less formal?

 

[The motor guy]

Find out who is on the board and ask.

I can think of dozens of reasons. Such as the insurance was much cheaper. Or they had a surplus in the maintenance fund back then and didn't need to collect more, but now they do? Or there is some future planned expense - like you need a roof in 5 years. Whomever is on the board would likely to be happy to tell you. Usually they publish minutes, and the full budget, but I am used to single family home HOA's with 500+ houses, so maybe small HOA's are less formal?

My neighbor was on the board. He said at times theyll raise the fee for a period of time and until they can afford to lower it. Not sure if it will ever go down with how expensive everything is nowadays. Maybe we will all get a little break if this mild hurricane season holds out. We've gotten slammed over the last few years. Not the houston area, but just the US in general.

 

[Lubener]

I'd sell and get out. Buy a house where you are in control.

 

[Dave Hess]

So the HOA fee used to be $285/month and the last 3 or 4 years it's went to over $500/month which pretty much voids out the annual appreciation of the place. I think I should sell the place and buy a normal house honestly. Opinions? I mean that fee covers the roof and the siding of the place I think. I'm required to have a stud in policy. I know they paint it occasionally, so that covers the siding at least. I mean that's a lot of bread to come up with every year. The upper scale neighborhoods around me only pay like $200-$600 the whole year for the HOA dues. I'm at $6,000

I know a woman paying almost $1200 HOA for a condo in south Florida.

I told her to sell it and rent for now.

 

[Dave Hess]

All associations in many states are very close to folding. Especially smaller ones. Insurance for so called common areas has gone up crazily. Heaven help if there was a claim in the last X years.

Seniors with limited income are looking at the cost of whatever you call it - individualizing their units

My sister is a lawyer and most of her business is in real estate.

She tells me horror stories of HOA and condo association disputes / fraud / missing funds, etc…

Yes, lots of associations have little cash reserves.

 

[The motor guy]

I'd sell and get out. Buy a house where you are in control.

Well everywhere around here has an hoa, but I've never seen a regular house have to pay more than $1,000/yr

 

[The motor guy]

The HOA isn’t making money, it’s just spreading the costs out among all condo owners. Do you get water/sewer/trash/landscaping/exterior maintenance/roof/pool/parking area maintenance/insurance on the building/clubhouse/liability insurance in that monthly fee?

If so, I think it’s comparable or less than what it would cost to do it on your own.

Sure they are. Its a property management company ran by a couple not so nice ladies. ive always wanted to know what that company charges, they have a horrible review online. Only 1 star

 

[97prizm]

So the HOA fee used to be $285/month and the last 3 or 4 years it's went to over $500/month which pretty much voids out the annual appreciation of the place. I think I should sell the place and buy a normal house honestly. Opinions? I mean that fee covers the roof and the siding of the place I think. I'm required to have a stud in policy. I know they paint it occasionally, so that covers the siding at least. I mean that's a lot of bread to come up with every year. The upper scale neighborhoods around me only pay like $200-$600 the whole year for the HOA dues. I'm at $6,000

I'd want an itemized receipt of expenses from them. I've seen numerous newscasts recently showing a number of HOA's spends money on not hoa related expenses. If they push back then it's time to get out.

 

[The motor guy]

I know a woman paying almost $1200 HOA for a condo in south Florida.

I told her to sell it and rent for now.

Why rent? Just buy a house. Townhouses/condos are for people who dont want full responsibility, but obviously the hoa fees dont provide much in my case. I didnt know it covered trash and the water bill and whatever else you guys said. Around here thats cheap. Only about $70/month for both.

 

[SC Maintenance]

Well everywhere around here has an hoa, but I've never seen a regular house have to pay more than $1,000/yr

Not saying you should or shouldn't, but a single family HOA will not pay for insurance, yard care, or exterior maintenance. You can't really compare the two.

 

[The motor guy]

Not saying you should or shouldn't, but a single family HOA will not pay for insurance, yard care, or exterior maintenance. You can't really compare the two.

Yard care doesnt cost $500/month. The insurance probably wouldnt change much from what it is now. Dont forget i still pay to insure the inside

 

[dlundblad]

Selling depends on what you want. ~$500 a month just for the HOA fees seems high to me. The HOA shouldn’t be making any money, but who knows. OP needs to find out, but then again, the rates will never go back down so even if you find out you’re being bent over a barrel, what good will it do?

In my brother’s case, their HOA president embezzled money and somehow didn’t have to pay it all back. They still live there to this day. Meanwhile, a co worker is the president of his place. Several newer nice homes (500-750k I suppose) and they have no money at all. Fees are about $1300 a year. All they can do is write letters to people if they don’t comply with rules. (Grass/ landscaping out of hand, visible trash cans etc.)

 

[The motor guy]

Selling depends on what you want. ~$500 a month just for the HOA fees seems high to me. The HOA shouldn’t be making any money, but who knows. OP needs to find out, but then again, the rates will never go back down so even if you find out you’re being bent over a barrel, what good will it do?

In my brother’s case, their HOA president embezzled money and somehow didn’t have to pay it all back. They still live there to this day. Meanwhile, a co worker is the president of his place. Several newer nice homes (500-750k I suppose) and they have no money at all. Fees are about $1300 a year. All they can do is write letters to people if they don’t comply with rules. (Grass/ landscaping out of hand, visible trash cans etc.)

Some neighborhoods are worse than others. There are a few older sundivisions that just recently started an hoa a few years ago and the things they complain about is minimal. Grass in the expansion joints on the driveway and thats about it. The subdivisions that were built around an hoa are the worst. Regardless, I've never heard of them doing anything other than mail a letter out. Not sure why they take them so seriously.

 

[Pablo]

Sure they are. Its a property management company ran by a couple not so nice ladies. ive always wanted to know what that company charges, they have a horrible review online. Only 1 star

Whoa.

Get out

 

[SC Maintenance]

Yard care doesnt cost $500/month. The insurance probably wouldnt change much from what it is now. Dont forget i still pay to insure the inside

Insurance is the big one and contents in insurance is generally peanuts compared to exterior. If your near the cost $500 a month for insurance itself could be cheap. I am 20 miles from the ocean and its almost $300 a month, and thats considered cheep here.''

Next is maintenance. Price out a new roof or total exterior house painting. Yes lawn care is not, or you can even DIY for mostly your time.

You can lament on the internet all you want. Until you compare to total cost of ownership for a SFH in your area you don't know. No one here can tell you.

 

[SC Maintenance]

Whoa.

Get out

All property managers online get 1* reviews if they enforce the rules - which no one reads then complains about after the fact. A professional manager is a good thing, otherwise you get Karen, the local volunteer.

Again, not giving advice to move or not move, just there is no free lunch. If I could pay $500 a month for exterior maintenance and insurance I would run to pay that amount.

 

[demarpaint]

So the HOA fee used to be $285/month and the last 3 or 4 years it's went to over $500/month which pretty much voids out the annual appreciation of the place. I think I should sell the place and buy a normal house honestly. Opinions? I mean that fee covers the roof and the siding of the place I think. I'm required to have a stud in policy. I know they paint it occasionally, so that covers the siding at least. I mean that's a lot of bread to come up with every year. The upper scale neighborhoods around me only pay like $200-$600 the whole year for the HOA dues. I'm at $6,000

If you don't mind me asking, what state are you in? Insurance seems to be a problem in a lot of areas and I don't expect it to ever improve.

 

[Pablo]

All property managers online get 1* reviews if they enforce the rules - which no one reads then complains about after the fact.

Again, not giving advice to move or not move, just there is no free lunch. If I could pay $500 a month for exterior maintenance and insurance I would run to pay that amount.

I maybe missed something

I thought he said the HOA is run by a property management company

I think I misinterpreted the comment. The HOA hires a property manager I think

 

[demarpaint]

My sister is a lawyer and most of her business is in real estate.

She tells me horror stories of HOA and condo association disputes / fraud / missing funds, etc…

Yes, lots of associations have little cash reserves.

I heard a lot of horror stories too unfortunately. IMO it is a great idea to get some kind of financial statement along with how much is in reserve before buying. I wonder how eager brokers will be to provide it?