Community Benefits: What Are HOA Fees Used For?

Community Benefits: What Are HOA Fees Used For?

It's typical for HOA fees in New Jersey to range from $200 to $400, but they can be as little as $20 a month. The more upscale a community is, the more homeowners will pay.

HOA fees are essential to maintaining residents' quality of life and the appearance of a community. They can help enhance home resale values and protect property values throughout the year.

What exactly do HOA fees cover? Keep reading to find out.

Amenity Upkeep

HOA fees often cover amenity upkeep for communal areas. For instance, if your community has tennis courts, clubhouses, or playgrounds, HOA fees will cover the maintenance costs of these areas.

Maintenance includes cleaning, repairs, and upgrades when they are necessary. HOA landscaping is paid for using HOA fees as well.

Regular HOA assessments can determine when repairs and replacements are needed.

An HOA should carry insurance policies to protect common areas and structures from damage. HOA fees will often contribute to these premiums.

HOA fees do not cover homeowners insurance and homeowners should pay their property taxes out of their own income.

Exterior Maintenance

In some HOA communities, fees will cover exterior maintenance of individual homes or condos. Communities have strict rules on what your home can look like on the outside so the fees you pay might be allocated to:

  • Exterior painting
  • Siding
  • Roofing

This will vary by community so knowing your HOA's rules is essential to what you can expect.

HOA fees typically never cover interior maintenance for homes. Appliance repairs, electrical problems, and plumbing issues are often paid for by homeowners separately.


HOA fees might cover utilities depending on the community agreements and setup. For instance, your community might budget for sewage, water, and trash removal.

Some communities budget for personal utilities, but this is not often the case. Homeowners are usually expected to pay for internet, electricity, cable, and gas bills.

Additionally, homeowners will have to pay for their home's insurance themselves.

Reserve Fund

A portion of HOA fees should go into a reserve fund set aside to help pay for unexpected expenses or significant repairs that might be needed because of structural issues or storm damage repairs.

Reserve funds are helpful for problems with community amenities. HOA fees cover general upkeep and maintenance of these areas. A reserve fund saves up money to cover what regular maintenance fees don't cover.

An HOA management company can help you create an HOA budget and leave enough over for a reserve fund.

HOA Fees Improve Your Community

HOA fees are required by association residents to improve the community. If you aren't sure what your HOA fees should budget for, this guide is a good place to start.

You can also work with PMI Prime Property to manage your association. Professional association management will collect HOA fees, build a budget around them, and create a reserve fund for emergencies and unexpected expenses.

With over 20 years of experience in New Jersey, we are the ideal choice to keep your community valuable. Contact us today to learn more about our HOA management services.