HOA Fees
Monthly homeowners association dues, if applicable. Often covers exterior maintenance, common-area landscaping, and shared amenities.
Operating expenses
Why HOA Fees matters
HOAs are an expense killer in many condo/townhome deals. They go UP, never down, and special assessments can hit $5-20k. Always pull the HOA's last 2 years of financials + reserve study before buying a condo as an investment.
How to check HOA Fees before you rely on it
Get the current dues in writing from the association, then request the last two years of financial statements, the most recent reserve study, and the meeting minutes. Look for a reserve balance that is well below what the study calls for, discussion of a special assessment, and pending litigation. Confirm the rental rules: some associations cap the number of rented units or require a waiting period before an owner can lease. Enter the dues plus any assessment you can see coming, and treat a rental cap as a reason to walk away.
Related terms
- NOI (Net Operating Income)
- Gross annual rent minus all operating expenses, before debt service and income tax.
- Cap Rate
- Net Operating Income ÷ property value. The unleveraged return a property generates, independent of f…
Where HOA Fees shows up in TrueCap
Operating expenses are line items in the analyzer's expense section, each labeled with its source — a HUD or FRED benchmark, a TrueCap default you can replace, or your own number. Property tax is always your local figure. Together they produce NOI and cash flow after reserves, and the results view shows how much each one moves the decision.