Homeowner associations often come with common amenities which all members can enjoy. Examples include a clubhouse and pool. While not all members may use them, they are available for use, so all members share in their maintenance and repair. There are other common amenities, however, that are limited in use to certain members, because there aren't enough for everyone. Two common examples include parking spaces and vehicle storage facilities.
When the HOA owns amenities like these, the board is charged with devising an equitable plan for making them available to members. The facilities always cost money to operate and maintain. Storage facilities for RVs, boats, jet skis, etc. almost always have security fencing, lighting, paving and access control to provide security for the stored property. There is also the management expense to consider. Someone needs to sign rental agreements, collect rent, rule enforcement, site inspections and ongoing repairs.
So limited amenities are both an asset and a liability to the HOA. While there is income potential, there is also real expense and risk in having them. An all too common occurrence in HOAs that have such amenities is to make them available for a nominal cost to the users. It is viewed as a benefit of membership to use them at below market rates. The problem with this line of thinking is that all members are paying for the upkeep of facilities used by a select few. Moreover, the HOA is losing a golden opportunity to generate revenue that not only pays for that upkeep but exceeds those costs and reduces the fees paid by all members.
For example, if your local area RV storage facilities charge $100/month and the HOA is charging $25/month for the 30 spaces it owns, the HOA is losing $27,000/year (30 spaces x $75/month x 12 months). All too often, underpricing these limited amenities leaves a lot of revenue unclaimed by the HOA at the expense of all the members.
Those that have benefitted from rock bottom pricing often scream and yell when price increases are suggested but what would happen if the HOA priced according to the competition? Would these folks exit en masse? Not likely. Why? Because the alternatives would not only cost as much or more but they would not be nearly as conveniently located. The competition is rarely located nearby so now travel time and gas expense is added to the storage cost.
The long and short of it is HOAs that have such limited amenities with revenue potential have a duty to get competitive rent. If competitive rent means more revenue than it takes to operate the facilities ... Hurray! All HOA members benefit from the asset. If competitive rent falls below what it takes to actually operate the facility, the board should consider closing it or converting it to something that will. When you find yourself in a hole, the best course of action is to stop digging.
The same principle applies to amenities that have outlived their usefulness. Years ago, saunas, tennis courts and hot tubs were popular amenities. The popularity has waned considerably and in the case of hot tubs, the cost of operation is considerable. If the majority of members won't use the amenities, or cost exceeds benefit, maybe it's time to consider discontinuing the amenity. If this is situation exists in your HOA, consult with your attorney for the process which may require a vote by the members.
If some of your HOA's amenities are limited in use to a few or have outlived their usefulness altogether, the board should act to make them pay or go away.
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