If you’re considering buying a condo in Puerto Vallarta, it’s essential to understand Homeowners Association (HOA) fees, locally known as “cuotas de mantenimiento.” These fees are a part of the condo regime structure in Mexico and play a vital role in how condominium complexes function.
What Are HOA Fees in Puerto Vallarta?
In Mexico, all condominium complexes must operate within a formal condo regime, a document that specifies each condo owner’s share of the entire property. HOA fees are generally calculated based on the size of your unit, using a peso rate per square meter.
Typically, these fees cover maintenance costs for common areas—such as lobbies, landscaping, swimming pools, and elevators. In many buildings, they also cover some utilities, including water, sewer services, and garbage disposal. The more amenities the building has (like gyms, rooftop pools, or 24-hour security), the higher you can expect the HOA fees to be.
How Do HOA Fees Work?
HOA fees are usually collected monthly, but some buildings might offer quarterly or even annual payment options. If a significant expense arises—say, a new roof or elevator—and the HOA reserve funds aren’t sufficient, the association might levy an extra fee (special assessment) to cover the costs.
To help manage costs, some buildings are beginning to adopt green energy solutions, like solar panels for common areas, which can reduce long-term fees after the initial setup costs.
Annual Meetings and HOA Management
Every year, the building’s residents and HOA representatives, including the elected HOA President and Secretary, gather for a general assembly. Here, they review the financial health of the HOA, discuss upcoming projects or repairs, and address any budget adjustments. If you can’t attend, you can appoint a proxy to vote on your behalf.
This meeting is a great opportunity to understand the direction and priorities of your building’s HOA and to have a voice in any potential changes to the fees or amenities.
Why Reviewing the Condo Regime Matters
Before purchasing a condo, it’s a wise idea to request a copy of the Condominium Regime document. Reviewing this document will give you an idea of what’s covered by the fees and any specific responsibilities you’ll have. Sometimes, the amount of HOA fees can be a deciding factor when choosing between condos—so it’s worth doing a little homework upfront!
Did you know? The amount you pay in HOA fees can significantly impact your long-term investment, especially if you plan to rent out your property. Higher HOA fees might mean better amenities for renters, but they can also cut into your profit margin.
