Luxury HOA fees fund operation, maintenance, and management of shared amenities and infrastructure. Fees vary widely by building, size, services and insurance costs, and buildings with hotel-style services generally cost more to run, so compare buildings using each association's current budget rather than a rule of thumb. Before buying, review the HOA's operating budget, reserve fund balance, and any pending special assessments — an underfunded reserve is a major warning sign.
Updated October 10, 2026
HOA fees in luxury real estate are monthly assessments charged to all owners in a condominium, planned community, or homeowner's association to fund the operation, maintenance, and management of the community's shared amenities and infrastructure.
How to compare fees: Ask for the association's current adopted budget and divide the monthly fee for the unit by its square footage to compare buildings like for like. Buildings with 24-hour concierge, housekeeping, spa and valet usually have higher fees because staffing costs more. Check what is included, and whether insurance or reserve increases are coming.
What HOA fees cover: Standard luxury HOA fees cover building insurance, maintenance of common areas and building systems, management fees, landscaping, exterior maintenance, and the operation of shared amenities (pool, fitness center, concierge, security). In branded residences, HOA fees also cover the staffing, training, and equipment costs of hotel-grade service delivery.
HOA financial health: Before purchasing in any luxury building, buyers should review the HOA's financial statements — including the operating budget, reserve fund balance, and any pending special assessments. An underfunded reserve account is a significant warning sign — it indicates that the building has deferred maintenance and that existing owners are likely to face special assessments to fund capital repairs.
Special assessments: A special assessment is a one-time charge levied on all owners to fund a capital expenditure that is not covered by the regular HOA budget — typically a major repair or improvement to the building. Special assessments can range from thousands to hundreds of thousands of dollars per unit depending on the scope of work.