HOA Management Fees Explained: What You’re Really Paying For

October 21, 2025

3 $100 bills and a pen sitting on top of a contract

Homeowners’ association (HOA) management comes at a cost, and boards of directors can expect to pay HOA management fees to companies that assist them in fulfilling their responsibilities. Providing a team of experts, an HOA management company oversees the association’s business affairs and offers support for maintenance, accounting, and other operations to relieve the board of some of its most burdensome duties. To learn what HOA management fees are, what they cover, types of costs, and much more, read on.

What Are Management Fees?

Management fees are the fees paid to the management company for ongoing management services. Fees are outlined in the management contract presented to the board. When reviewing an HOA management contract, boards should:

Guarantee the contract clearly and thoroughly itemizes the included services.
Identify any charges for overtime work and supply changes.
Understand what they have to pay for and how much.
Check for hidden fees and ancillary charges
Make sure they know if and how they’ll be reimbursed when alternative goods or services are used.
Partner with an HOA attorney for questions about scope and pricing.

What Do Management Fees Cover?

Each management company determines its pricing differently. Generally, the services included in a community’s management fees are:

Administrative services: Overall association operations and administration, contract negotiations and oversight, contractor and vendor management, project management, insurance administration, conflict resolution, meeting prep, and community software
Experience: Your HOA management fee covers the cost of having an experienced manager, whether they’re a portfolio (off-site) manager or an on-site staff member. You’re investing in the knowledge and guidance that only a professional can provide, protecting your association from costly mistakes and maintaining long-term value and community harmony.
Maintenance services: Building maintenance, grounds maintenance, amenity repairs, inspections
Financial services: Preparing and executing the association budget, managing financial reports, collecting assessments and fees, special assessments, reserve fund analysis, billing

Related: 7 Signs Your HOA Needs Professional Financial Management Support

The Cost of Management Fees

Full-service management fees can cost associations anywhere from $700–$6,000 per month. Several factors, including the association’s size, meeting schedule,and location, influence the amount.

Larger communities might expect to pay more than smaller ones due to extra oversight. In contrast, a community in a more affordable area will likely have less expensive management fees than a luxury one in a prime location. Management companies typically offer various forms of management and pricing structures.

Businessmen sitting using calculator and writing on clipboard

The Different Types of Management Fees

Depending on the type of management, an HOA management company may or may not charge certain fees. Here are the fees clients might see as part of their management agreement:

Setup Fee

While this fee establishes that a management company has been given authority over an HOA’s day-to-day operations, not all management companies charge a setup fee. In some instances, setup may only include signing the management contract and paying the first month’s management fee.

Monthly Management Fee

Typical HOA management costs are charged monthly. Boards should investigate precisely what’s offered when exploring their options, as well as the corresponding fee.

Maintenance Fee

Maintenance fees cover repairs and cleaning, protecting the association's appearance. This may be its own individual fee, or it can be calculated as part of the monthly management fee. Communities may also be charged for specific repairs, especially those that are unexpected and significant.

Early Termination Fee

When an association terminates its management contract early, it almost always must pay for the remainder of the initial agreement. The exact amount will depend on the contract terms. Management companies may also be able to take legal action for breach of contract.

Exit Fee

If a community decides to change management companies, there may be fees to execute the transition. The management company you’re leaving may use the money to transfer documents to your new management and update your records.

Extra Fees

While most management companies will charge a set amount, some contracts leave room for ancillary service costs. For example, a community that doesn’t usually see snow may be charged for snow removal on the occasion that it’s needed.

Woman stands in front of board meeting holding clipboard

What Affects Management Fees?

HOA property management fees are often dependent on the community itself. These are the factors that may impact pricing:

Community size. The bigger the association, the higher the management fees. More units mean more residents, more maintenance, and more management oversight.
Community type. Management fees for condo associations and high-rise communities are typically higher due to the complexity of operations, such as managing elevators, valet services, and package delivery, as well as the higher number of units.
Community location. Communities in areas with higher home prices generally have higher management fees to match the higher cost of living and wages.
Service package. The more a management company takes off a board’s shoulders, like meeting planning, maintenance, and budgeting, the more the community will have to pay.
Experience of Manager- The higher the designation of the manager, the more expensive the management fee. PCAM®, LSCM®, CMCA®, and AMS® certified managers could all raise costs.

Types of HOA Management

HOA management will vary across communities to accommodate needs. These are the levels of service that will determine how much management fees cost:

Full-service management: Comprehensive service for day-to-day operations, including maintenance, finances, and communication. Expect all standard management fees to be charged.
Portfolio management: Offsite guidance from a community manager assisting multiple clients’ day-to-day operations. Pricing for portfolio management varies significantly among management companies, the depth of service, and the level of board member involvement.
Financial-only management: A service tier that focuses solely on handling the association’s funds, including budget preparation and reserve fund monitoring. Boards will pay less for this service tier, typically around $500–$700 per month, depending on community size and state.

Read More: What is Financial-Only Management?

Why Hire a Professional HOA Management Company?

Associations may have the option to self-manage if they want to avoid paying HOA management fees, but it's a big undertaking that could end up costing you more in the long run. Hiring a professional community management company is a worthwhile investment that can transform your operations. What does an HOA management company do? Here’s what Associa offers to its communities:

How to Find a Management Company Within Budget

Property management fees are one of the most important factors to consider when hiring new HOA management. Read our ebook, “Top Questions to Ask Before Hiring Your Next HOA Management Company,” to learn what to look for in a new HOA management company.

FAQs About HOA Management Fees

Are HOA Fees Management Fees?

No, HOA fees and management fees are different charges. Homeowners pay HOA fees to their association to fund operations. Boards use a portion of that money to pay an HOA management company for its services in managing the community.

Does an HOA need a property management company?

Associations have the option to self-manage, but it's a big job. Hiring a professional community management company lightens the board's burden and liability.

What is a typical management fee?

Full-service management fees can cost associations anywhere from $700–$6,000 per month. The financial-only service tier will cost $500–$700 per month. Several factors, including the size of the association, will determine the exact amount.