Understanding the Factors that Contribute to HOA Fees Increases

Understanding the Factors that Contribute to HOA Fees Increases

Living in a homeowner's association community can provide you with many benefits, from increased security to enjoyable amenities. The cost of living in an HOA community varies, with the national average being around $170 each month. These fees go toward the cost of managing and maintaining the community.

Unfortunately, there might come a time when your HOA fees might increase. This blog will discuss why they might go up and what you can do to navigate them.

Increase the HOA's Reserve Fund

All HOAs in Idaho need to have reserve funds in place. This money is intended to cover the cost of the following:

  • Replacements
  • Repairs
  • Emergencies
  • Unforeseen circumstances that aren't covered by insurance
  • Minimize HOA assessments

The HOA board wants to have enough funds in the bank to cover any of the above costs. They need to meet a certain reserve level to ensure they have enough to do so. Some HOAs fail to have enough in their reserve fund, resulting in them increasing their fees to make up the difference.

More Services Offered

Your HOA community might start offering more services and amenities to neighborhood residents. This can include:

  • Landscaping
  • Security
  • Playgrounds
  • Community gathering areas

Your fees might increase to offset the costs of these new services.


The prices of goods and services continue to go up. The cost of keeping up the standard of HOA living also increases with the cost of living. HOA fees might become more expensive to keep up with the ever-changing costs.

Some of the things inflation can affect in an HOA community include:

  • Vendor costs
  • Maintenance
  • Insurance
  • Landscaping
  • Repairs

Inflation can make it more challenging for HOA boards to budget and plan for the future. Increasing HOA fees can provide them with a buffer so they can avoid financial strains.

Neighborhood Improvements

Your HOA board might want to make major changes to your community. This can include:

  • Repaving roads
  • Constructing a new building
  • Installing a pool or tennis courts

While they do have that reserve fund to help cover these costs, paying for these types of improvements can result in HOA rates going up.

Boosting Property Value

An increase in HOA fees doesn't always have to be associated with a negative thing. As we mentioned before, your HOA board might want to make improvements to your neighborhood with the additional funds. Not only do you get to enjoy new things in your community, but your property value will go up with the added amenities.

Learn More About How to Navigate an Increase in HOA Fees

While most communities try to keep their costs low, there are times when your HOA fees might need to go up. Effectively communicating with your residents and giving them enough notice will help you avoid conflict.

PMI Central Iowa is an HOA management company in the Des Moines area. Reach out to our office to book a consultation with one of our property managers. We'll evaluate your HOA property and determine which of our services best fits your needs.