Differences Between a Condo Fee & an HOA Fee

HOA and condo fees pay for amenities such as swimming pools.

HOA and condo fees pay for amenities such as swimming pools.

Whether you live in a condominium unit or a neighborhood with a homeowners association, or HOA, that tends to neighborhood upkeep, you’re going to see a recurring bill to cover condo fees or HOA membership. In many ways, these fees are essentially the same and help fund the maintenance and upkeep of property for which the association acts as a steward. While largely the same, these fees and their uses may be used differently, depending upon the type of association.

Condo Association vs. HOA

The biggest difference between a condo association and an HOA is the scope of ownership. In a condo, each member individually owns his unit but maintains a joint ownership in the building and its grounds. Ties to a homeowners association aren’t as tight: Homeowners individually own their lots and homes, and the HOA owns common areas. Homeowners have no vested interest in common areas owned by the HOA. Because of this, condo fees are typically paid to support upkeep of one’s own property, while HOA fees support another’s holdings.

Size of Fees

A condo association or HOA’s fees and dues may vary significantly as they are based upon the holdings each needs to support. Because a condo association’s fees handle repair and upkeep of the condo building and common areas such as pools, parking lots and other areas, they’re typically higher than the fees assessed by a similarly sized HOA. Individual homeowners bear the costs of maintaining their own homes -- a cost that’s rolled into condo fees -- so an HOA usually doesn’t require the level of funding that a condo association does.


In most HOAs, fees are assessed uniformly, with each lot owner paying an equal share of upkeep for common areas. In areas with different types of homes, such as one with single-family houses and town homes, assessments may not be split by household. Instead, town home owners pay an assessment proportionate to their share in their communal lot, and owners of single-family homes pay a full assessment. A condo unit’s assessment system isn’t so clear-cut. Condo owners often have different percentages of ownership interest in the building, with larger units bearing a larger share of ownership. The association’s costs aren’t split evenly among each owner but paid in proportion to ownership percentages.

Fees vs. Fines

Many condo and HOA bylaws provide the association with the power to levy fines against members, though associations should use fees and fines for different purposes. An association uses fees to cover maintenance and upkeep on its holdings. Fines are used as a punitive measure to encourage all residents to play by the rules in the association’s bylaws. Because they’re not a stable revenue stream, fines aren’t typically used to pay for routine upkeep.

About the Author

Wilhelm Schnotz has worked as a freelance writer since 1998, covering arts and entertainment, culture and financial stories for a variety of consumer publications. His work has appeared in dozens of print titles, including "TV Guide" and "The Dallas Observer." Schnotz holds a Bachelor of Arts in journalism from Colorado State University.

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