Homeowners’ Association (HOA) Fees: What You Need to Know

Homeowners’ Association (HOA) Fees: What You Need to Know

If you’re planning to buy a property in a subdivision, gated community, or condominium here in the Philippines, you’ll likely come across the term Homeowners’ Association (HOA) fees. For first-time buyers, this can sound like just another expense on top of your mortgage, taxes, and utilities. But HOA fees are more than just a line item on your budget — they play an important role in maintaining the quality, safety, and overall value of your property.

Let’s break it down so you know exactly what you’re paying for, why it matters, and what to watch out for before signing on the dotted line.

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What Are HOA Fees?

HOA fees are regular payments collected by the community’s governing body — the Homeowners’ Association — to fund the upkeep of shared spaces, amenities, and community services. These can be collected monthly, quarterly, or annually, depending on the rules of the association.

In the Philippines, HOAs are governed by the Magna Carta for Homeowners and Homeowners’ Associations (Republic Act 9904), which outlines their responsibilities, powers, and limitations. This ensures that funds are collected and spent for the benefit of all residents.

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What Do HOA Fees Cover?

While the specifics can vary per community, HOA fees usually cover:

1. Security and Safety – Guard salaries, CCTV maintenance, and security equipment.
2. Garbage Collection – Some subdivisions have their own waste disposal service.
3. Common Area Maintenance – Landscaping, street lighting, and repair of shared roads.
4. Amenities – Pools, clubhouses, gyms, and playgrounds need regular cleaning and upkeep.
5. Administrative Costs – Office operations, legal fees, and permits.
6. Special Assessments – For big projects like drainage improvement or new facilities.

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Why Are HOA Fees Important?

Paying HOA fees isn’t just about following the rules — it’s about protecting your investment. A well-maintained community attracts buyers, keeps property values high, and ensures residents enjoy a comfortable and safe environment.

Think of it this way: if the roads inside your subdivision are cracked, the playground rusted, and security lax, it won’t just affect your daily life — it can make your property harder to sell in the future.

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How Much Are HOA Fees in the Philippines?

Rates vary greatly depending on location, size of the development, and the level of amenities. As a rough guide:

• Subdivision lots: ₱500 – ₱3,000 per month
• Condominiums: ₱50 – ₱120 per sqm per month (e.g., a 50 sqm unit could mean ₱2,500 – ₱6,000 monthly)

Luxury developments with high-end amenities like infinity pools, gyms, and landscaped gardens will naturally have higher dues.

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What to Check Before Buying

Before you commit to a property, ask these questions:

• How much are the HOA fees, and how often are they collected?
• What services and amenities are covered?
• Is there a history of special assessments or sudden increases?
• How transparent is the HOA about where the money goes?

You have the right to see the HOA’s financial reports, so don’t hesitate to ask.

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The Bottom Line

HOA fees might feel like an extra burden, but they’re really a form of collective investment. When properly managed, these fees help keep your neighborhood safe, clean, and pleasant — which ultimately benefits every homeowner.

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Conclusion

Sa totoo lang, HOA fees can be your best friend or worst headache — depende sa management ng community. Kung transparent at maayos ang paggamit ng pondo, sulit na sulit ang binabayaran mo dahil kita mo sa paligid ang improvements. Pero kung palpak ang HOA at hindi malinaw saan napupunta ang pera, talagang maiinis ka lang.

Kaya bago ka bumili ng bahay o condo, siguraduhin mong alam mo ang breakdown ng HOA fees at kung paano ito ginagamit. Tandaan, hindi lang ito dagdag gastos — it’s also part of protecting your property’s future value.

See more about our latest blog – Home Renovation Tips That Can Increase Your Property’s Resale Value