{"id":4635,"date":"2015-05-22T18:15:26","date_gmt":"2015-05-22T10:15:26","guid":{"rendered":"http:\/\/leasing.dmcihomes.com\/?p=4635"},"modified":"2024-11-18T11:30:08","modified_gmt":"2024-11-18T03:30:08","slug":"basic-home-association-renters","status":"publish","type":"post","link":"https:\/\/leasing.dmcihomes.com\/blog\/basic-home-association-renters\/","title":{"rendered":"Rental Law Philippines: Home Association Basics for Renters"},"content":{"rendered":"

Once you purchase your condo, it\u2019s tempting to imagine happily ever after\u2014at least, until reality knocks on your door in the form of Homeowners\u2019 Association fees. But there\u2019s no need to stress; you can still lay back and enjoy condo living with the right mindset and understanding of how the system works. After all, aside from the usual concerns about lease based on the rental law in the Philippines<\/a>, association dues are just part of\u00a0common condo fees<\/a> that new condo owners must know.<\/p>\n

The first step to coming to terms with HOA fees<\/a> is to understand that it\u2019s not just about condominium rules. In fact, being committed to these fees has its own perks! Keeping that in mind, it\u2019s much easier to have a positive mindset about the HOA fees. To put this positive mindset into action, it\u2019s also important to have a basic understanding of how they work, so read up to learn about how Homeowners\u2019 Association fees make up an optimum condo experience.<\/p>\n

Is it necessary to be a member of the HOA?<\/b><\/h2>\n

According to Section 5 of Resolution No. 770 of 2004<\/a>, which is the Framework for Governance of Homeowners Association, membership must be voluntary. Still, membership can be required of you as stated in your deed of sale, property title, or contract.<\/p>\n

Moreover, the Magna Carta<\/a> for Homeowners and Homeowners\u2019 Association does claim that any homeowner has the right to the basic community services and facilities, provided that this homeowner pays the necessary fees and other pertinent charges. <\/i>To enjoy shared amenities or facilities then, it is still a must to pay the right fees and abide by the rental law in the Philippines<\/a>.<\/p>\n

\"make<\/a>

Don\u2019t stay on the outside, looking in! To enjoy condo facilities and services, it\u2019s still best to become a member of the Homeowners\u2019 Association.
Photo by radosclawczarneci10<\/a> on Pixabay.<\/p><\/div>\n

What are Homeowners\u2019 Association Fees for?<\/b><\/h2>\n

The easiest way to understand HOA fees is to think of the maintenance cost<\/a> of your condo. Usually, the cost of association fees is directly related to how upscale a condominium is. Given that multiple families and individuals opt for condo living, these parties are expected to contribute to maintaining common parts of the area. This includes spots such as the parking area, elevators, various amenities<\/a>, and the condo fa\u00e7ade. The upkeep of such areas are not covered by lease, hence the need for association dues.<\/p>\n

\"condo<\/a>

Love your condo lobby? Your association fees help maintain these common areas.
Photo by GregoryButler<\/a> at Pixabay.<\/p><\/div>\n

Moreover, whenever the establishment needs to be improved or developed, for instance to renovate the fitness area or to repair the elevators, the community may also be asked to pay extra assessment. This means that HOA fees may vary over time, so it is advisable that you keep up with any changes that the establishment may put into effect. After all, keep in mind that association fees are about both the maintenance and development of quality condo life<\/a>.<\/p>\n

How much do you need to pay?<\/b><\/h2>\n

The answer depends on the operating expenses, as well as any additional restructuring the condominium association may see fit to implement. One way to gauge the cost is by looking at the amenities offered to condo owners. The more the amenities, the higher the cost. The total area in square meters, including balcony space when applicable, also affects the cost.<\/p>\n

\"calculate<\/a>

Always conduct basic research to know how your association dues are calculated.
Photo by stevepb<\/a> at Pixabay.<\/p><\/div>\n

Do these fees include tax?<\/b><\/h2>\n

Your Homeowners\u2019 Association fees are definitely subject to tax. According to the Revenue Memorandum Circular No. 9-2013<\/a> by the Bureau of Internal Revenue or BIR, all fees due to be collected by the homeowner\u2019s association are subject to VAT or Value-Added Tax. If, for instance, the condominium association required at least Php 90 worth of association fees for every square meter without tax, then a unit measuring 75 square meters merits Php 6,750. This amount will then increase after being subjected to the VAT. So remember to get yourself acquainted with the rental law in the Philippines<\/a>.<\/p>\n

\"tax<\/a>

It\u2019s always advisable to stay informed about how much tax your association dues are subject to.
Photo by FirmBee<\/a> on Pixabay.<\/p><\/div>\n

When are you required to start paying?<\/b><\/h2>\n

As soon as the property for rent has been turned over to you (meaning the title has been transferred to your name and you have signed the deed of sale), whether you have moved in or not, you are expected to pay the HOA fees as you are now considered part of the community. It is also important for you to take note of when your association dues are collected, so keep that in mind when going over the contract and learning about condominium rules<\/a>.<\/p>\n

\"community<\/a>

Once you officially become part of the community, you are required to pay the homeowners\u2019 association fees.
Photo by jp26jp<\/a> on Pixabay.<\/p><\/div>\n

Some developers collect annually, while some do so monthly, and others offer a discount when you pay the lump sum of your annual association fees. For DMCI Homes, for instance, expect one month less for your total fees.<\/p>\n

Who\u2019s in charge of collecting your HOA fees?<\/b><\/h2>\n

The condominium association designates the task of collection to the Property Management Office (PMO)<\/a>. Their office is in charge of maintaining the building, which means that they are also tasked with overlooking concerns such as managing janitorial services and personnel for maintenance and security.<\/p>\n

\"property<\/a>

The PMO is in charge of providing services for renters and personnel-related tasks and as such is in charge of collecting the homeowners\u2019 association fees.
Photo by delphinmedia<\/a> on Pixabay.<\/p><\/div>\n

What happens when you delay payment?<\/b><\/h2>\n

Since association dues have to do with maintenance of facilities and luxuries, there are repercussions when you are unable to pay on time. The consequences of delayed payment or refusal to pay on property for rent is contingent on area laws as well as the CC&Rs of the condo establishment. Of course, the best way to learn about these consequences is still to take the time to read and understand the governing documents pertinent to the Homeowners\u2019 Association along with learning about the rental law in the Philippines<\/a>.<\/p>\n

Usually, there are\u00a0three ways<\/a> in which the administration may charge you: first in the form of late fees, which may be determined by pertinent documents; next may be in the form of reasonable costs. These have to do by how much had been incurred by the association to collect delinquent assessment<\/a>. If the association had to account for costs of hiring attorneys and going to court, such actions will affect the reasonable cost they will charge. Lastly, you may also be charged interest on all the sums you were due to pay.<\/p>\n

\"delayed<\/a>

Read up on your condominium\u2019s rules and do your best to avoid delays in payment for a smooth-sailing condo experience.
Photo by succo<\/a> on Pixabay.<\/p><\/div>\n

In the case of DMCI Homes, always remember that in the end, the condominium association, upon declaring your account delinquent<\/a>, reserves the right to deny you access to shared utilities and amenities. Examples of these are the pool area, function rooms, or the gym. So to avoid any inconvenience, it\u2019s vital to pay all your fees on time.<\/p>\n

Should you attend homeowner\u2019s association meetings?<\/b><\/h2>\n

Yes! There is no better way to have an intimate understanding of such fees than by being present in HOA meetings<\/a>. These meetings have to do with talking about and updating the regulations and maintenance concerns of the condo establishment. By attending these meetings, you can learn firsthand about topics related to budget and condominium rules. It is also a valid occasion for you to raise any concerns.<\/p>\n

During meetings, you may ask questions about repairs, construction, maintenance, and of course, fees and the like. For instance, here are some questions you may want to consider:<\/p>\n