The maintenance of everything the association owns in common (streets, gates, landscaping, pools, clubhouses, and in a condo the building's roof, exterior and shared systems), the insurance on those common areas, management, and a reserve fund for their eventual replacement; what they never cover is anything inside your own walls or on your own lot.
An HOA fee is a shared bill for shared property, and the way to read one is to ask what the association owns. In a master-planned community of detached homes it owns the entrances, the parks and the landscaping along the streets, and the dues are modest. In a condo it owns the building, and the dues carry the roof, the elevator and the master insurance policy. Same word, different bill.
What the dues pay for
- Common-area maintenance: landscaping, irrigation, private streets and their lighting, gates and their repair, entry monuments, walls and fences along common lines.
- Amenities: pools and spas, clubhouses, fitness rooms, tennis and pickleball courts, parks and trails, and the staff who run them.
- In condos and townhome associations: the roof, exterior walls, foundations, shared plumbing and electrical, elevators, hallways and often the water, sewer and trash for the whole building.
- Insurance on the common property, and in condos the master policy on the building itself (your own policy covers the interior and your belongings).
- Management: a management company or on-site staff, accounting, collections, legal.
- Reserves: a portion set aside each month toward roofs, paving, pool resurfacing and painting, so those are paid from savings rather than by special assessment when they fall due.
What they do not cover
Your own home and lot: your roof and exterior in a detached-home community, your interior everywhere, your utilities unless the association buys them in bulk, your property tax and your homeowners insurance. Special assessments are extra: a one-time charge when the reserves cannot cover a large repair, and the reason to read the reserve study before buying. And the dues do not cover the fees at transfer, which in Nevada include the resale package the buyer is entitled to and a transfer fee at closing.
Reading the number
Dues in the Las Vegas valley range from about $30 a month in a small detached-home association to $400 or more in a high-rise, and the figure is on every listing we publish. Low dues are not automatically good: an association with a pool and no reserves is a special assessment waiting to happen. Ask for the budget and the reserve study, and check the reserve is funded at 70 percent or better of what the study says it should hold. In Nevada the resale package includes both, and the buyer has five days to cancel after receiving it.
Whether the dues are worth it is a question about the amenities you will use and the maintenance you would otherwise do yourself. A $150 fee that covers the front landscaping and a pool is cheaper than owning either.
Questions people ask
Are HOA fees tax deductible?
Not on a home you live in. On a rental property they are a deductible operating expense, and a home office may allow a proportional deduction. Not tax advice; a preparer can confirm.
Why are HOA fees so high?
Usually because the association owns a lot: a condo building's roof, exterior, elevators and master insurance are all in the dues, and insurance costs have risen sharply. Underfunded reserves catching up, a lawsuit, or a small number of units sharing large amenities also push dues up.
Can HOA fees go up?
Yes, annually with the budget, and most governing documents allow the board to raise them by a set percentage without a vote. Special assessments are separate and can be large. Nevada requires the budget and any assessment to be noticed to owners in advance.