In Illinois, the average monthly HOA fee is around $387. Keep in mind, though, that this listed fee might only be the base rate. Sometimes, extra costs could show up.
Unexpected situations like a roof repair or your HOA battling a legal issue can mean extra expenses for you. These are special assessment fees, and they're on top of your regular payments.
But don't let this scare you! Learning what your HOA fees cover in Chicago can help you make smarter choices when finding your perfect neighborhood. Read on so you can navigate the world of HOA fees like a pro.
What HOA Fees Cover
These fees cover services like landscaping and HOA property maintenance. In essence, these costs allow residents to enjoy these facilities without having to deal with the burden of maintenance.
In addition to this, HOA fees account for trash collection, water and sewage services, and landscaping for public areas. They're put toward making sure the community always looks its best. Some associations may offer other services under their fees such as snow removal, pest control, and security provisions.
Apart from these, a portion of the HOA fees are set aside for reserve funds. This fund covers unexpected expenses or larger projects, such as repaving roads or replacing roofs on common buildings.
Additional Costs
Unexpected HOA fees, also known as special assessment fees, can arise when your Homeowners Association encounters unanticipated expenses or when scheduled reserves fall short. Situations that may lead to such fees include damage from natural disasters or legal disputes involving the HOA.
These additional costs are divided among community homeowners. Stay informed by reading the meeting minutes, HOA newsletters, and annual budget statements to anticipate these costs. Being proactive will allow you to have a clear understanding of your potential financial obligations and plan for them in your budget.
HOA Impact on Home and Rental Valuation
How much you pay for HOA fees can affect your HOA home value in the long run. Properties with low fees and well-maintained common areas might fetch more in the housing market. Similarly, this could play into your rental valuation too, especially if you're considering turning your home into a rental in your HOA community.
The Worth of HOA Management Companies
HOA management companies take care of the day-to-day operations in your community. Their goal is to keep the HOA running smoothly and ensure the fees are used effectively. They can also provide expertise in legal issues and financial management to help prevent unnecessary expenses.
Get Help Managing HOA Dues and Budgets
HOA fees in Chicago cover common area maintenance, utilities, and reserve funds, but additional costs may arise. Remember that your HOA fees can influence the value of your home and rental valuation. Stay informed, plan wisely, and consider professional assistance for managing dues.
At PMI Chicago Metroplex, we have a team of experts who are ready to make a custom association management plan to ease your journey as an HOA homeowner. For help processing HOA fees or managing an HOA budget in the Greater Chicago area, contact us today.
