What are HOA Fees?

Who is the Home Owners Association?
The Home Owners association (HOA) is usually made up of a quorum of property owners or in some resorts this may be handled by a management company if none of the owners choose to be part of the board. As an owner you can have active participate in the association.
They will usually meet monthly to discuss the agenda and allocate resources as needed for the upkeep of the community.
Most owners pay the fees and that is their only involvement.

Are HOA Fees Mandatory?
Yes, the HOA fees are a necessary mandatory expense.
HOA fees (or home owners association ) are set by the HOA board who are selected by people who own in the community and are calculated to cover running costs. Generally the better the facilities the higher the fees.Manned gated security, nice landscaping, community pool, clubhouse and facilities all cost money each year to run and is shared by the owners equally. The Home Owners Association oversee this.

How HOA Fees Contribute to Rental Income
When you rent your property out, people want to stay at places that are secure and have lots of nice facilities and are willing to pay for that – so in effect you may pay more per year but your returns are proportionately greater so the HOA can have a very positive effect within your community and your rental returns.

Are HOA Fees a One Time Fee?
No, HOA fees may be monthly, quarterly or annually. Each resort has their own schedule but in most cases they are monthly.

What Expenses are part of the HOA fees?
It is going to vary from location to location but in the large main resorts such as Championsgate, Reunion, Windsor Island, Windsor Hills etc the fees will most likely include most if not all of the following:

RESORT
Resort property management fee.
Resort Security (usually 24hour manned and gated).
Resort Landscaping (most likely will include individual property as well as resort).
Maintenance of the clubhouse and community pool.
Community common grounds and playgrounds, tennis courts, basketball etc.

PROPERTY
Lawn Maintenance.
Pest Control for the exterior.
Basic Cable TV, Internet and Telephone.
Garbage Collection.
Irrigation.
Water.

HOA Fees and Insurance Coverage
Townhouses and condos may also have building insurance included with the HOA fees, so you can expect them to be a little higher than the homes.

Are HOA Fees Tax Deductible?
If you are using the property as a short term investment rental property the HOA fees may be tax deductible.
Check with your tax advisor to make sure you business plan allows for HOA fees to be claimed as a business expense.

Given what an owner gets for the cost of the fees, most owners find the HOA fees to be very good value and mostly pay for themselves.

We’d be delighted to give you comprehensive and detailed answers to all of your questions regarding HOA fees, how much they cost and what’s included for any major Orlando short term rental resort.