Typical fee for HOA management? (1 Viewer)

[GroveDiesel]

What's the typical percentage of all HOA dues that typically goes to management and legal services?

Our HOA fees aren't all that crazy or anything, but I just got our Annual bill and noticed that 1/3 of the total fees collected go to management and legal fees. Seeing as how the extent of what they do seems to be pretty much limited to sending out annual Bills and maybe 1 or 2 notices each year, it seems awfully high to me.

 

[Osaurus]

Collection by lawyers on behalf of the HOA is usually per instance. I don't know what your HOA is like, but our lawyer makes some pretty good off of those that pay dues (me) despite not being all that successful in collection.

ETA: management company charges a pretty penny too FWIW. Most likely this is where most of it goes.

 

[nirad3]

Seems on the high side but could be due to numerous factors. If your dues aren't crazy high to begin with it's probably less of a concern.

 

[shadyridr]

The whole things a scam.

 

[Joe T]

Love these threads.

One of the biggest scams going.

 

[jomar]

IIRC, about 25% of our fees go to the management co. 25% to snow removal, 25% garbage disposal, and 25% misc

 

[cstu]

5-10% of the monthly gross and the first month's rent.

 

[eoMMan]

Won't this vary quite a bit due to the size of the community, financials of the HOA, etc. etc. etc. is the manager/lawyer big boobed, etc. ?

 

[bentley]

When I was prez of our HOA, all of the management companies charged per house per month. As a percentage of the total, a management fee could vary widely depending on what else was going on in the neighborhood. I know that landscaping was our biggest cost then management fees then lifeguards for the pool then legal.

 

[Joe T]

What do the management fees pay for exactly?

 

[Mr. Pickles]

Love these threads.

One of the biggest scams going.

Correct.

 

[Zegras11]

The worst is when a buyer has to pay like $350 just to transfer the name on the account. Such a ripoff.

 

[the rover]

The worst is when a buyer has to pay like $350 just to transfer the name on the account. Such a ripoff.

Illegal in about 35 states.

 

[the rover]

What do the management fees pay for exactly?

Mainly so volunteer idiots don't run the place into the ground.

 

[NutterButter]

Do you pay property taxes in addition to dues?

 

[BassNBrew]

What do the management fees pay for exactly?

Collect dues.

Keep the books and maintain the bank account.

Facilitate meetings and elections.

Conduct inspections / drive throughs.

Pay bills.

Get quotes.

Handle complaint calls.

Handle maintenance calls/issues if applicable.

 

[BassNBrew]

The worst is when a buyer has to pay like $350 just to transfer the name on the account. Such a ripoff.

We were charging $75. A couple of attorneys told us we were making other companies look bad being so low.

Personally I don't like the fee but we have to charge it to stay competitive. Often companies will lowball their monthly HOA percentage knowing that they will get it back and then some with a $495 transfer fee. The "volunteer idiots" will often jump on a 1-2% and not be concerned about the the other fees.