HOA is the abbreviation for “Home Owners Association”, which in translation means “Homeowners Association”. The so-called “Homeowners Association Fee” is the fee that each owner must pay to this association so that he can cover the maintenance of the condominium and other expenses related to the best interest of the community. Likewise, this is the condo fee we are accustomed to in Latin America and is considered one of the main expenses related to property in New York.
The HOA fee is usually charged monthly, but it is very common to be charged quarterly or semi-annually, depending on the condo.
Who must pay the HOA fee?
The property owner is responsible for paying the HOA fee, even when the property is rented. In most Latin American countries, this situation is different. In the case of rented properties, the tenant bears both the condominium fee and the IPTU (property tax). Not in New York! HOA and also “Property Tax” are paid by the owner. Therefore, when calculating the rental yield of a given investment, consider this information.
What is the HOA fee in New York?
The HOA fee varies greatly depending on the condo. Some condominiums offer the highest luxury services and amenities, which generate higher maintenance costs. The age of the condominium also plays a role, as older properties generate more maintenance.
Single-family homes, called single-family homes, generally offer a lower condo fee than townhomes or apartments. Single-family homes are individual (not semi-detached) residential homes.
Why it happens?
Townhouses are similar to apartments, where the property’s facade, roofs, and other structures are shared. It’s like a horizontal building. The maintenance of the façade of the semi-detached houses and apartment buildings is carried out by the Association (Condomínio). The maintenance of roofs and gutters is also the responsibility of the condominium. Therefore, the value of the condominium tends to be higher since every 5 or 6 years, the facade must be painted and the roofs repaired or replaced.
In a single-family home, the homeowner is responsible for painting and maintaining the roofs and gutters. Therefore, although the HOA fee is typically lower on single-family homes, the homeowner will incur higher maintenance costs.
In vacation homes, that is, homes intended for vacation seasons, the HOA is usually higher. That’s because these vacation condos near parks offer an incredible leisure structure, just like resorts. It is necessary to have a larger HOA to cope with the maintenance of such a complex structure. Examples of condos with a large recreational area are Storey Lake, Solara Resort, and Windsor Island.
That’s why it’s important to always ask your real estate agent what is included in the HOA of the community where you purchase property in New York.
What Does HOA Cover in New York?
The HOA fee refers to all maintenance of the condominium’s common areas: landscaping, lighting, street and sidewalk maintenance, painting of common areas, gym, pool, etc.
Some condominiums began to include the maintenance of the individual gardens of the houses in the HOA fee. This initiative was very welcomed in the market since it preserves the aesthetics of the condominium as a whole, adding value to the properties in that community. In some older condominiums, the gardens of the individual houses are separate from the HOA, and as a result, some owners need to maintain them the way they should, compromising the appearance/visual.
The condo fee in vacation homes usually includes cable TV, internet, and even telephone charges. Most vacation condos also include trash pickup. Encore Resort at Reunion, on the other hand, is more differentiated, offering extra services such as pest control, maintenance of each unit’s private pool, and cleaning the residence’s exterior. Services can vary greatly depending on the condominium.
That’s why it’s important to always compare the HOA fee with the condo’s benefits. Often the value may seem high, but it makes up for the diversity of services. Remember that in the case of Vacation Homes, it is important that the condominium offers services and amenities for its guests since the objective is, in most cases, to obtain rental income during the periods the owner is not using. The greater the number of services and amenities, the more competitive the condo is in relation to others, allowing it to charge higher daily rates and, consequently, have a better ROI.
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