Are you eyeing a Denver condo or townhome and wondering what those HOA fees really cover? You’re not alone. Getting clear on fees, rules, and reserves can save you from surprises and help you choose the right building for your goals. In this guide, you’ll learn what HOA fees typically include in Denver, how rules affect day-to-day living and rentals, and how to evaluate reserves and special assessments with confidence. Let’s dive in.
HOA fees in Denver: what they cover
HOA assessments pay for the upkeep and operation of shared property and services. In Denver, you’ll commonly see fees cover a mix of:
- Routine maintenance and repairs for common areas, like roofs, siding, hallways, and elevators.
- Landscaping, snow removal, and trash or recycling for common spaces.
- Utilities paid at the community level, such as water, sewer, and electricity for shared systems.
- Management and admin costs, including bookkeeping and legal.
- Master insurance for common elements and association liability.
- Amenities and operations, such as pools, gyms, and clubhouses.
- Contributions to the reserve fund for major future repairs or replacements.
- Taxes, employee wages, and professional services.
What’s included varies by community. Some condos include water or basic cable. Others do not. Always review the current budget to see exactly what you get for your fee.
How fees are structured
Most Denver associations charge a flat monthly fee per unit. Some use a formula tied to unit size, percentage interest, or bedroom count. Fees might also include add-ons for assigned parking, storage, or optional amenities. Billing can be monthly, quarterly, or annually, so confirm the cycle.
How to compare buildings
When you compare HOAs, look at two things together:
- The dollar amount of the regular assessment.
- What that fee actually includes.
A lower fee that excludes water, exterior maintenance, or reserves can cost you more in the long run. Ask for the current-year budget and a short list of included services before you decide.
Reserves: your safety net for big repairs
The reserve fund is cash set aside for future major work, like roof replacement, paving, elevators, siding, or shared mechanicals. Adequate reserves help the association avoid large, unexpected special assessments. Strong reserve funding is a good sign of responsible management and can help protect property values.
Reserve studies explained
A reserve study analyzes the association’s major components and maps out funding to cover them over time. It typically includes:
- An inventory of components and their condition.
- Estimated remaining useful life and replacement cost.
- A funding plan and recommended contribution schedule.
Best practice is to commission a professional reserve study every 2 to 5 years and update the budget annually. In Colorado, associations disclose certain reserve information and owners have rights to see relevant records.
Special assessments: why they happen
A special assessment is an extra, one-time or short-term charge to cover unexpected costs or shortfalls. Triggers include emergency repairs, underestimated reserves, or deferred maintenance. Your community’s declaration and state law set the approval process, owner notice, and voting rights for large assessments. Always read the documents to understand your rights.
Red flags to watch for
- No recent reserve study or minimal reserves given the building’s age.
- Frequent special assessments in recent years.
- High or rising owner delinquency on dues.
- Pending major litigation, such as construction defects or structural claims.
- Incomplete insurance coverage or very high deductibles.
If you see these issues, dig deeper into minutes, financials, and the reserve plan.
Rules and your lifestyle
HOA rules shape daily life, so make sure they align with your plans. Rules live in the CC&Rs, bylaws, and separate house rules. Topics often include parking, pets, quiet hours, rentals, and architectural approvals.
If you plan to house-hack or rent, confirm whether rentals are allowed, if there is a rental cap, and whether there is a minimum lease term. If you plan to remodel, check whether interior work needs architectural committee approval. Match the rules to your lifestyle to avoid friction later.
How to read HOA documents
In Denver transactions, sellers usually provide a resale or estoppel package. Review it carefully with your agent, and consult other professionals as needed.
Must-have documents
- Declaration of Covenants, Conditions & Restrictions (CC&Rs) or recorded declaration.
- Bylaws and rules or house rules.
- Resale or estoppel certificate with current assessments and any pending special assessments.
- Annual budget and recent financial statements.
- Reserve study and funding plan.
- Meeting minutes for the last 12 to 24 months.
- Master insurance summary.
- Delinquency report and collection policy.
- Pending litigation disclosures and related documents.
- Management contract (if applicable).
- Any engineering or inspection reports of major elements.
How to read the financials
- Budget: Note what’s included, such as utilities, insurance, management, and reserve contributions.
- Reserve line: Compare annual contributions to the reserve study’s recommendations.
- Balance sheet: Look for a separate operating fund and reserve fund.
- Delinquencies: High or growing delinquency rates can be a concern. Ask how the board handles collections.
- Oversight: Check whether financials are audited or reviewed by a CPA.
Insurance basics for condo buyers
The association’s master policy typically covers common elements, exteriors, and the association’s liability. It usually does not cover your contents or interior upgrades. You will likely need an HO-6 policy. Confirm whether the master policy is bare walls or all-in, and note the deductible. A high deductible can lead to owner costs or special assessments if there is a claim.
Denver-specific watchouts
- Age of inventory: Denver has a mix of older condos and newer developments. Older buildings often face higher-cost repairs for roofs, façades, or plumbing.
- Snow and freeze: Snow removal and freeze-related wear matter here. Check how snow removal is budgeted and performed.
- Water and sewer: Some HOAs pay these at the community level, which can affect monthly fees. Confirm what is included.
- Construction defects: Multi-unit buildings may face construction-defect claims. Always review litigation history and meeting minutes.
- Local oversight: HOAs are private entities. The City and County of Denver does not run or regulate them directly, though municipal rules still apply to properties.
Your buyer checklist
Use this to keep your review on track.
Documents to collect
- Resale or estoppel certificate with current fees and any pending special assessments.
- CC&Rs, bylaws, and rules.
- Current budget, recent financials, and the reserve study.
- Meeting minutes from the last 12 to 24 months.
- Insurance summary and declarations.
- Records of any pending litigation and prior settlements.
- Management contract, if there is one.
Questions to ask the HOA or manager
- What does the monthly assessment cover, specifically?
- Are utilities included, and which ones?
- What is the current reserve balance, and what does the most recent reserve study recommend?
- Have there been special assessments in the last 5 years? Are any planned?
- What is the delinquency rate for assessments?
- Are there any current or pending lawsuits?
- Are rentals allowed? Is there a cap or minimum lease length?
- What are the pet and parking rules?
- Who handles exterior maintenance, pest control, and snow removal for my unit?
- Do interior remodels require architectural approval?
Questions for your lender, insurer, and title team
- Will the lender accept the association’s documents and insurance coverage?
- Are there financing restrictions on the community that affect me?
- Does my HO-6 need special coverage due to the master policy deductible or coverage gaps?
Negotiation and contingencies
- Include an HOA-document review contingency to allow time for review.
- If you uncover major issues or a planned special assessment, consider asking for a price reduction, a seller credit, escrowed funds for the assessment, or the seller to pay the assessment portion.
- If concerns are significant and not resolved, you may use your contingency to walk away.
Make a confident move
You do not need to be a spreadsheet pro to pick a solid HOA. Focus on what fees include, how the rules match your lifestyle or rental goals, and whether reserves are funded according to a credible plan. With the right documents and pointed questions, you can spot red flags early and choose a community that supports both your budget and your long-term plans.
If you want a second set of eyes on HOA documents or a short list of Denver buildings that match your goals, reach out to Sarah Sells Denver. You’ll get clear guidance, investor-minded strategy, and a calm, step-by-step path to the right home.
FAQs
What do HOA fees usually cover in Denver condos?
- Fees often cover common-area maintenance, landscaping, snow removal, some utilities, management, master insurance, amenities, and reserve contributions. Always verify inclusions in the current budget.
How can I tell if an HOA’s reserves are healthy?
- Ask for the latest reserve study and compare recommended funding to actual contributions and the current reserve balance. Frequent special assessments can be a warning sign.
Can an HOA issue a large special assessment in Colorado?
- Yes, associations can levy special assessments subject to the community’s CC&Rs and state law. Owners must receive notice, and larger assessments may involve an owner vote per the governing documents.
What should I review in the HOA resale package?
- Review the CC&Rs, bylaws, rules, budget, recent financials, reserve study, meeting minutes, insurance summary, delinquency report, litigation disclosures, and the resale or estoppel certificate.
How does HOA insurance interact with my HO-6 policy?
- The master policy covers common elements and association liability, while your HO-6 typically covers interior finishes, personal property, and liability. Confirm whether the master policy is bare walls or all-in and note the deductible.
Are rentals allowed in Denver HOAs for house-hacking?
- It depends on the community. Some allow rentals with caps or minimum lease terms. Check the rules, and confirm current status with the HOA or manager before you buy.
