Wednesday May 07, 2025
What are HOA fees?
HOA fees are monthly or quarterly dues paid by homeowners to a homeowners association (HOA), which is responsible for managing and maintaining the shared aspects of the community. These fees may help support the services and upkeep of common areas, fund reserves for future repairs, and streamline daily operations that can benefit residents.What are average HOA fees for townhomes?
Average HOA fees for townhomes in Minnesota generally range from $200 to $500 per month, but they can be lower or higher based on local factors. Here’s a general breakdown by region:- Twin Cities metro: Average HOA fees for townhomes in the Twin Cities may skew higher — around $300–$450 — especially if the property is part of a gated or amenity-rich community.
- Southern Minnesota: In cities like Mankato or Rochester, average HOA fees for townhomes may fall between $180–$300 per month depending on services like snow removal and shared utilities.
- Northern Minnesota and rural areas: HOA fees here often stay under $250, particularly in townhome communities with limited shared amenities or fewer maintenance obligations.
What do HOA fees for townhomes cover?
HOA fees for townhomes in Minnesota typically cover things like exterior maintenance, landscaping, snow removal, insurance for shared structures, and common area upkeep. The Board of Directors usually determines the amount based on projected annual expenses. An increase in dues might be necessary occasionally to cover the association's expenses. Every association has its own distinct set of policies, so it's essential to read your community's governing documents to find out the specifics. Here are a few examples of what HOA fees in your Minnesota townhome community might cover:Regular maintenance and repairs
HOA fees for townhomes can pay for regular maintenance and repairs to shared amenities, green spaces, equipment, and systems. Examples might include:- Lawn maintenance and landscape services
- Snow removal
- Pest control
- Electrical system and lighting
- Trash and recycling removal services
- Cleaning, painting, and upkeep of exteriors and common areas (hallways, walls, carpeting, clubhouses, and more)
- Maintenance and repairs on exterior building surfaces
- Maintenance of shared amenities (pool, fitness equipment, clubhouses, etc.)
- Security system
Utility payments
Homeowners associations may cover the costs of electricity, lighting, water, heating, and air conditioning for the community's common areas. In some Minnesota townhome communities, HOA fees also include utilities for individual homes, such as water or trash collection, depending on how the governing documents are written. Be sure to confirm with your association and review governing documents to determine what is your responsibility as a homeowner and what your dues cover.Reserve funds
An HOA must be fiscally responsible, including allocating a portion of HOA dues to a special long-term reserve account to pay for planned, budgeted repairs or renovations that do not occur regularly. These expenses could include repaving private roads or replacing elevator mechanicals. If a repair like this happens and the reserve fund is not large enough to cover the costs, your association may levy a special assessment or take out a loan to make up the difference. You can learn more about this here. However, Minnesota made it illegal for a homeowners association to use reserve funds to pay regular operating expenses.Insurance policies
All associations in Minnesota are required to purchase a master insurance policy to protect their community's building structures and community property against damage. This coverage benefits all owners in the community; however, remember that this insurance does not replace the need to carry your own homeowner's policy. Want to learn more about HOA insurance? Check out more resources here.Contingency funds
Some associations automatically set aside money each month to cover unforeseen community expenses and emergencies that cannot be paid for by the reserve funds.Personnel
Many HOAs use a portion of their fees to cover the salaries and benefits of a community's property management, janitorial, and maintenance staff if your community chooses to employ any of these. These team members can play an essential role in the success of your community and maintaining a consistent image. Having an experienced team on site can increase efficiency and enhance residents’ day-to-day experience. Keeping your community well maintained is especially important if you have a clubhouse or pool area with restrooms or common areas such as a lobby or patio where there tends to be much traffic.Common interest amenities
Another benefit of living in a common interest community and paying HOA dues is the ability to enjoy community amenities you may not be able to afford or maintain on your own, such as a swimming pool, clubhouses, tennis courts, or walking trails. In addition, depending on your community, you may no longer have to pay separately for lawn maintenance, trash, snow removal, and other services, which can certainly add up.Do you have to pay HOA fees in Minnesota?
Yes, if your townhome is part of a homeowners association, paying HOA fees is typically required. These fees are established in the association’s governing documents and are usually not optional. When you purchase a townhome governed by an HOA in Minnesota, you agree to abide by its policies and financial obligations, including monthly or annual fees.Non-payment can lead to late fees, loss of privileges (such as access to shared amenities), or even legal collection action. However, most townhome communities strive to work with residents experiencing hardship — communication is key. If you're uncertain about the fee structure before purchasing, ask your real estate agent to request documentation or disclosures.
Professional Minnesota property management
To support a community's ongoing operations and financial stability, many homeowners associations enlist the services of a professional community association management company. A professional property management company can effectively operate under the board's direction, authority, and control and bring specialized knowledge to help manage vendors, budgets, compliance, and resident satisfaction. Additionally, a great management company will provide full-scope management services that add value and enhance the lifestyles of its residents.HOA fees for townhomes are a necessary expense to keep a community clean, safe, beautiful, and financially stable — and that's what can help enhance property values. For more information on HOA fees for townhomes and community association living, contact FirstService Residential, Minnesota's property management leader.