Some properties in select cities are charged more fees annually apart from property taxes. Some groups have organized in certain parts of the country as Homeowner Associations. These groups have a governing board that helps to determine what the appropriate fees are for specialized services offered to homeowners. There are some rental properties that investors can encounter that have HOA fees. Learning what HOA fees are and how to avoid them can help you invest in real estate wisely.
Residential Property Charged with HOA Fees
Many renters or owners of condominiums pay monthly or annual homeowners association dues. This practice has moved to some parts of the residential real estate industry. Properties that are located in neighborhoods that offer on-site or nearby amenities usually have HOA fees. Not all realtors, private sellers and investment companies announce that Homeowner Association dues are payable when marketing properties.
Examples of Homeowner Association fees payable for services include:
1. Tennis courts
2. Nearby parks
3. Swimming pools
4. Landscaping services
5. Neighborhood clubhouses
Buying an investment property in upscale cities can increase the chance of having HOA fees applied monthly or annually. There are ways to avoid the attachment of these fees to help decrease expenses for owning a property.
How to Decrease or Eliminate HOA Fees
A growing trend for property management companies is to expand relationships with HOA groups. Managers of properties know the burden of the additional expenses incurred with Homeowner Association groups. Buying property from an investment company that has built a relationship with a property management company can be beneficial. These companies often include reduced priced HOA fees into the standard service fees charged for property management.
Investors who find the perfect home and are set on making a purchase can try negotiating applied HOA fees. Every member of a Homeowner Association can ask to view the standard contract. This operating agreement usually spells out how much each service provided costs. Fees could be negotiated based on review of this information in some cases. Before investment properties are purchased, it can be a benefit to double check for HOA fees and other regulations independently.
Buying Rental Investment Property in Florida
The established homes that are listed in the JWB portfolio are renovated properties with signed tenant leases. All homes are ready for sale as investment properties. Buying into the North Florida market as a passive income source could be one option for new or experienced real estate investors. Investment guides and audio training are available by requests on this page.