4 Sneaky Ways HOAs Can Take Your Money (and Even Your House) — 7 Ways To Prevent This in 2026
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G. Brian Davis
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Rebekah Evans
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Homeowners associations (HOAs) can add hefty costs to owning a home. And that often goes beyond the obvious monthly dues.
Keep an eye out for the following ways HOAs can separate you from your money — and a few options to prevent it.
4 Sneaky Ways HOAs Can Take Your Money
If you violate the bylaws of your HOA, they can fine you with violation fees. Some HOAs feeling strapped for cash may even go out of their way to find violations to pad their reserves.
Second, HOAs can stack on late fees on top of those violation fees or unpaid monthly dues. These can add up quickly.
Third, HOAs sometimes charge sneaky administrative or management fees, often buried in your monthly dues. “Management fees can be tricky to spot unless you closely review your contract,” said Ryan Dossey, real estate expert with SoldFast.
Most subtle of all, HOAs could keep monthly dues artificially low, and then hit residents with special assessments when those inevitable large maintenance or repair expenses come along.
“HOAs often underfund their reserves to keep monthly dues low,” explained Andrew Fortune, real estate broker with Great Colorado Homes. “In Colorado Springs where I work, when a big hail storm hits and damages homes enough to justify an insurance claim, HOAs pass the huge deductible onto homeowners.”
Can HOAs Take Your Home?
Some states do allow HOAs to file a lien against homeowners who fail to pay and then foreclose on the property.
“At this point it won’t be just the dues and fines you have to pay, but also the legal fees associated with attaching the lien and foreclosing on it,” Dossey added.
7 Ways To Minimize HOA Costs
Try these strategies to cut your losses to the local HOA.
- Attend HOA meetings: If you want a say in the financial management of your HOA, you need to actually show up and make your voice heard. “Go to board meetings and vote against risky budget decisions,” Fortune said.
- Ask for annual financials: Ask for the past five to ten years’ financials, and a list of all special assessments. Look for whether the board is keeping enough money in reserves.
- Review HOA rules annually: Not knowing the rules won’t keep you from getting fined — quite the opposite.
- Get written approval: Thinking about making an external change to your home? “Get approval in writing for external modifications, even small ones,” said Daniel Smith, realtor with Smith Realty Team.
- Opt out of specific services: Some HOAs let you opt out of specific services, such as landscaping or snow removal, if you do it yourself.
- Explore HO-6 insurance: “This policy covers you when the HOA hits you with a massive deductible bill,” Fortune explained.
- Research de-annexation clauses: Some HOA bylaws outline a process for residents to remove their home. This typically requires a formal legal request, however.
The more involved you get with your HOA, the more control you gain over budgeting and assessments. Lean in and play a more active role in your HOA, to make sure it runs well without frequent assessments, hidden administrative fees and other sneaky costs for you and your neighbors.
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