Breaking Down the Costs: What Impacts HOA Fees?

Breaking Down the Costs: What Impacts HOA Fees?

Approximately half of all U.S. residents now live in a dwelling governed by a homeowners association (HOA). About 84 percent of all new single-family homes sold in 2022 belonged to an HOA.

There are different types of HOAs, including those for neighborhoods and condominium complexes. They all have distinct rules and fees as well. That is because they are run by community members, who have unique goals and outlooks.

Fortunately, there are only a few major factors that impact HOA fees. Keep reading to find out what they are and how they apply to your neighborhood.

Grounds Maintenance

HOA property maintenance is one of the most common expenses covered by fees. This includes common areas, such as grounds and buildings.

These assets are privately held (owned by the association). However, what this looks like varies among communities.

Neighborhoods with a lot of green space may spend more on landscaping, irrigation, and beautification efforts (like flower and tree upkeep) than those that lack a lot of space. If your neighborhood or condo has common buildings, HOA fees help pay for maintenance and repairs. This includes regular HVAC, electrical, plumbing, and pest control services.


HOA insurance covers damage to physical structures or common areas. If an uninsured driver crashes into your community's fencing or a storm damages your pool house, insurance kicks it.

It also covers certain liability expenses for the community. This includes instances where someone becomes injured on common grounds.

Without this protection, the HOA would have to pay out-of-pocket for these expenses. The premiums for such policies are most usually paid for with HOA fees.


HOA fees can also be impacted by the amenities your community offers. If your neighborhood or condo complex has a fitness center or pool, HOA fees cover upkeep. This also holds for walking trails, dog parks, or any asset that is owned by the community as a whole.

Municipal Services

In some cases, HOA fees pay for municipal services. This can include anything from trash removal to wastewater management.

The advantage here is that costs are lumped into annual dues so that each household does not have to cover these expenses individually. Also, like every other item on this list, the community as a whole decides what services they want (or don't want).


All the services and costs mentioned above will, of course, vary between locations. Just like you would expect to pay more for pest control or electrical repair in Austin than in many suburban or rural parts of Texas, this too is reflected in HOA fees in these distinct regions.

Learn More About HOA Fees

Now that you understand the variables that impact HOA fees, you can have the confidence that you are setting yours at an appropriate rate for your neighborhood and amenities. A management company can further advise you on striking the right balance.

PMI Silicon Hills is a local-owned and independently operated full-service HOA property management company serving the Austin area. We provide a range of services, including HOA management board member resources. Reach out to us today to learn more about Texas HOA fees or to schedule a free consultation.