What Are HOA Dues And What Do They Cover?

If you’re asking yourself, what are HOA dues and where is the money going? You’re in the right place. 

HOAs are nonprofit organizations led by an elected board of people living within a community. They create and enforce rules and guidelines for the community as a whole. This includes maintaining shared spaces, snow removal, ensuring homeowners are caring for their properties, etc. HOA dues help to financially support these responsibilities. Here’s how they work.

What are HOA Dues?

While the services of an HOA vary by community––from basic property maintenance to luxuries like pools and fitness centers––all come at a cost. HOA dues, also known as HOA fees, are the way in which members of a community fund these services. The entire HOA and its function are supported by monthly dues from community members. Generally, these fees can range anywhere from $100-$1000. 

Who Manages HOA Dues?

Tasked with running an HOA, board members will collect and manage monies from HOA dues. It’s important to note, however, that board members do not receive financial compensation for this work; rather, they are volunteers. 

In most cases, HOAs will use this money for standard monthly expenses such as waste removal, landscaping, and insurance. Additionally, many HOAs place leftover funds into reserve accounts. This money can be used for occasional larger projects. For example, if the clubhouse roof needs to be replaced, a reserve fund could be used to foot the bill.

HOA Dues vs Assessments

While HOA dues remain a monthly constant, special assessments are another type of fee imposed upon residents. If a large or otherwise costly project becomes necessary, and the HOA has insufficient funds to cover its cost, then special assessment fees will be added to the bills of community members. 

What Do HOA Dues Cover?

HOA dues can work to cover a number of services and costs of the community. Generally, they’ll help pay for maintenance, utilities, and administrative costs.


Depending on the community, HOA dues may cover lawn care, snow plowing, street sweeping, pest control, or other tasks related to facility maintenance, both indoor and outdoor.


Waste management, sewage, hot water, and even heat or electricity may be covered by some HOA dues. 

Reserve Funds

Generally, money leftover from HOA dues will be deposited in a reserve fund. In the event that a drain pipe needs to be rerouted or a fallen tree needs removal, the reserve funds can be used rather than forcing homeowners to pay a surprise assessment. 

Administrative Fees 

HOA dues also support ongoing administrative costs. For example, if an HOA utilizes an HOA website to disseminate information and collect payments, then a portion of dues will go towards these services.

Community Management Company

Serving on an HOA board can prove to be too much work for residents to feasibly continue managing their communities. In these cases, some self-managed HOAs transition to professional management companies. In these cases, HOA dues will cover any resulting costs.

How to Make Payments

Varying by size, location, and the amenities offered, HOAs operate in a variety of ways; however, they all work to improve their communities, and they all collect monthly dues. 

To collect these dues, many HOAs will send you a printed invoice or one through email, requiring residents to pay their dues through cash or check; however, a simpler and more effective option is to utilize a payment portal through an HOA website.

For example, when your HOA sets up a website through Hoampage, they’ll be able to launch a dedicated portal through which homeowners can keep track of and pay their monthly dues online. Not only does this make it easier to pay HOA dues––thereby decreasing the frequency of missed payments––but these platforms also allow for more efficient tracking of payments and bookkeeping. 

While no one looks forward to paying their HOA dues, streamlining the process with an HOA website will make the process easier for everyone involved.

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