Breaking Down the Costs: HOA Fees, Club Memberships & What Buyers Should Know

When purchasing a home in a planned, gated, or luxury community, it’s important to understand the additional costs that go beyond your mortgage. Two common fees that often surprise buyers are HOA fees and club memberships. Knowing how these costs work—and how they differ—can help you budget smarter and avoid unexpected financial stress.

What Do HOA Fees Typically Cover?

Homeowners Association (HOA) fees are regular dues paid to help maintain a community’s shared spaces and enforce community standards. However, what’s included can vary significantly from one community to another.

Common inclusions:

• Landscaping and lawn care for shared areas

• Trash removal and recycling

• Security or gated access

• Maintenance of pools, playgrounds, gyms, or clubhouses

• Pest control or exterior insurance (for condos/townhomes)
  
  

Some HOAs even include water, cable, or internet—while others cover only the basics. That’s why it’s essential to request a full breakdown of what’s covered before committing to a property.

HOA Fees vs. Club Memberships: What's the Difference?

While HOA fees focus on maintenance and community management, club memberships are separate charges tied to lifestyle amenities—especially in golf, country club, or resort-style communities.

Club memberships typically offer:

• Private golf course access

• Tennis courts and pro shops

• Fine dining, event spaces, or spas

• Fitness centers and social programming
  
  

These memberships can be optional or mandatory, depending on the community’s rules. In some neighborhoods, club membership is a requirement with home ownership—even if you don’t plan to use the amenities.

Buyers should always clarify:

• Is the membership mandatory or optional?

• Are there initiation fees or monthly dues?

• Can the membership be transferred or sold later?

Can These Fees Impact Financing?

Yes—HOA and club fees can impact your mortgage approval. When lenders calculate your debt-to-income (DTI) ratio, they include recurring costs like HOA dues. Higher fees can reduce the amount you qualify to borrow.

For example:

• A $500/month HOA fee could lower your buying power by tens of thousands of dollars.

• Club dues, if mandatory, must also be factored into your monthly budget—even if they’re not included in the mortgage calculation.
  
  

How Should Buyers Budget for These Fees?

• Request a detailed fee sheet from the seller or HOA.

• Ask when fees were last raised and review any history of increases.

• Check if there are special assessments or upcoming capital improvements.

• If financing, share HOA and club costs with your lender early in the process.
  
  

A good rule of thumb: Treat these fees like part of your monthly housing cost—not an optional extra.

HOA and club fees can offer incredible value—but only if you’re aware of what they cover and how they impact your finances. Before you buy, do the homework: ask questions, read the fine print, and factor these costs into your budget.