LAS VEGAS (KTNV) — As more Americans look to jump from renting to buying a home, more properties require you to cover a homeowners association fee.
NPR said the average monthly fee was about $250 in 2023. More than 500,000 homeowners in Nevada live in homes with HOAs— but what if your HOA payment increased by over 100%?
People living in one Las Vegas condo complex are on the edge. They're facing a dues increase that's double what they're paying now. Rock Vista Springs Three condo complex residents said the proposed hike is too much.
"In January, it would go up 168%," said Sherwin Escanuela, a complex resident.
Escanuela has two family members who own units in the condo near Buffalo and Washington in Las Vegas.
Residents got a letter about monthly HOA dues potentially going up next year.
It is currently $270, which they have increased from $220 the year before, and $180 the year before. They seem to be pushing it. It will go from $270 to $416 a month.
The letter came from Nicklin Property Management; it explains the hike is necessary for reserve, plumbing and
special assessments— making the total increase to about $416.
"That is an extra hundred-something dollars out of their expense. That is a utility payment. Everything has gone up over the years," Escanuela said.
The HOA board will meet on the increase at Shadow Hills Church at 6 p.m. on Tuesday.
I emailed Nicklin. Their representative shared a bit of their explanation, which will be shared with homeowners.
The operating budget jumps from about $1.7 million in 2024 to nearly $2.8 million in 2025.
The email said the increase stems from more costly insurance that is now needed due to the value of the entire property and future plumbing improvements that are needed, such as pipe replacement throughout the complex.
The document reads in part:
We understand that this budget increase is significant. However, HOA assessments are rising throughout the Las Vegas Valley due to inflation and similar economic pressures, so we are not alone in facing these challenges.
I also talked to another expert in the field, not connected to this management company, about the increase.
Mozell Williams from CAMCO Community explained what this assessment information means.
"Reserve assessment can be at a different amount if the reserve is underfunded; here, it says the reserve in the letter is 42 percent funded; we like a healthy reserve, so we would ideally like all reserves to be 100 percent funded, healthy reserves somewhere between 70 to 100 percent. if they are 42% they are trying to get the reserve from stop bleeding from other maintainance that may come up," Williams said.
With a higher operating budget for next year, the reserves are lower. Escanuela said nearby communities don't pay anything near this amount.
Why is there an HOA on Rock Springs Vista on another community where I do own an investment property, and it is $210 and there is no plans to increase to $416, now are talking about almost double that amount for the same condo community.
He said he and his family will be attending the meeting.
