Assessments are a monthly fee charged by the Home Owner’s Association(HOA) to cover the costs of shared or community expenses. These fees vary wildly depending on the type of home that you buy as the types of expenses are different. They’re an important cost to keep in mind when buying a home.
If an assessment covers the bare minimum of expenses, as it does for some smaller HOAs or self-managed HOAs, that means it’s most likely just covering the costs of common insurance for shared spaces, trash pickup (i.e. scavenger), and possibly landscaping.
In luxury condominiums or high rises, you’ll see a higher assessment as the fees are covering amenities like cable, exercise facilities, pools, 24-hour security, roof decks and more. The way assessments are divided up between units is not always an even split. In some cases, your assessment is based on the square footage of your unit.