Luiz:

HOA fees are set by the association. If there are a lot of like minded owners that feel the fees are too high you should have the treasurer compile a report to go over with a fine tooth comb to see how much is actually needed to meet all of the expenses of the association. Perhaps they could look into reduced insurance premiums by shopping it around, reduced maintenance costs by getting other bids, etc. You don't want to reduce your fees so that the property is not adequately attended to but perhaps you can shave off some expenses enough to lower the premiums a bit. You (in co-operation with the other owners) are the association and therefore can define your own expenses. Perhaps it hasn't been done in a lot of time or perhaps there is a large reserve that you don't need and you could adjust your rates even for a year or two to give everyone a breather. Good luck!

Top Producer - Luis didn't mention anything about a condo; he only said "homes"

Luis, Assuming that you are talking about reducing the fees in a community you are thinking of purchasing in my answer would be simple: NOTHING. What is, is.

If you are already in a community, the suggestions from Jared could be helpful.

Many of my clients won't even consider developments with HOA fees because they basically can't do too much other than pay them, and they don't know if and when the fees might be increased in the future.

HOA fees are a bit like death and taxes- can't avoid them!

Good luck to you!

Patti Phillips
"Advice You Need, Attention You Deserve"
800-680-9133

Hi Luis,

This is a great question! I work in property and association management along with real estate sales. Depending on your HOA specific situation you might be able to reduce those costs, but it will most likely take time and dedication from not only you but your board members and homeowners alike. You might even have to get voted onto the board yourself to make any progress.

It's hard to offer other suggestions without knowing anything about the community, but this should get the gears turning. Get the community involved- I think they'd all be interested in saving some money! Hopefully you'll be able to find a few places to shave costs....

1. If your HOA uses an association management company, they may want to discuss ways to shave costs with the company or renegotiate the contract. The association management company should already be participating in cost saving practices, but I think many might be surprised at the junk costs associated with poor management.

2. RFP's (request for proposals) should be sent out for work done for the Association (maintenance of common areas, grounds, buildings, roofing, etc) or at the very least written estimates from several qualified and insured contractors. Don't let the Association or the management company hire the first person they contact! Price shop.

3. Your HOA might have an insurance policy. Shop around or try negotiating for better rates. Also look for discounts. If you all have active alarm systems you might qualify for better rates for example.

4. Review the budget! How much is being set aside for lawn maintenance, capital improvements, etc. Can you get better rates? There may be unnecessary expenses too. Some owners or even board members may be getting "pet projects" done or request personal favors that end up getting buried in association costs.

5. Review the master deed and bylaws (you may want a lawyer to help interpret.) Often times maintenance items get charged to the Association thus increasing everyone's HOA dues when they should be charged back to the owner who received the work. Depending on the wording of the deed, owners may actually be responsible for the costs of maintaining their own yard and common ground within X feet of the sidewalk, sidewalk repairs in front of their property, painting, driveway maintenance, etc.

6. Are owners behind on their dues forcing the HOA to eat extra costs and/or interest? Can they charge a late payment and interest to supplement those who insist on paying late each month/ quarter / year.

7. Does the Association have an accountant or some other person they pay to pay the bills? Is there a homeowner in the community willing to donate their services instead? Lawyer in the community to help with any HOA legal issues? Setup a neighborhood watch instead of paying a security guard? etc. etc.