Boost HOA Revenue Without Raising Fees - Article Banner

Homeowners Associations (HOA) will frequently face the challenging task of maintaining or improving community standards and services without placing an additional financial burden on the residents who live in the community. Those homeowners tend to get prickly when their fees go up every month or every year, and they won’t be thrilled about new assessments or charges unless there’s a very good reason for them. 

But, your HOA likely needs more money. How can you balance the need for revenue with your goal of keeping your membership satisfied with the way the HOA is collecting and spending their money? 

For HOA board members, finding creative ways to enhance revenue streams that do not involve raising fees is crucial to ensuring the financial health and happiness within the community. We’ve been supporting and managing HOAs in Winston-Salem for many years, and we have a lot of experience advising those boards on how to increase earnings and minimize expenses for the good of your accounts and the satisfaction of your homeowners. 

We’re using that expertise today, and looking at innovative and practical methods to boost HOA revenue while keeping homeowner costs stable.

Prioritize Collecting Overdue Receivables

Collect Overdue Receivables

Are there outstanding dues that homeowners in your community have not yet paid? 

HOA dues fund the common needs of the community, such as landscaping, repairs, and recreational facilities. They also contribute to reserve funds for future projects or emergencies. Thus, when dues are unpaid, the community may face financial strain, leading to reduced services or increased fees for all members. It’s vital to convey to the community why dues are necessary and what they help achieve.

This is a fantastic starting point when you want to boost what your bank accounts hold. You need to prioritize bringing in the money that’s owed to the association. It’s not only essential for the operation and maintenance of the community and its amenities, it’s also a big part of your planned revenue. We know that collecting overdue dues can be a challenging task for HOA board members, who must balance being firm yet fair, legal, and respectful. These are also your neighbors, and maybe your friends who you need to chase down to get their balances paid. 

It’s important to bring them into compliance. Here are some good ways to do it. 

Communicate Policies

Ensure that all members understand the payment schedule, the amount due, and the methods of payment accepted. Your HOA’s rules and expectations regarding dues should be clearly outlined in the governing documents provided to homeowners upon joining the organization.

Send Reminders and Notices

Sending a friendly reminder can prompt those forgetful homeowners to settle their dues without further action required. If a friendly reminder does not prompt payment, send an official notice indicating the amount overdue, any late fees incurred, and the possible consequences if dues remain unpaid.

Implement Late Fees and Interest

Implementing late fees or interest on overdue amounts can incentivize timely payments and help offset any potential losses due to delayed funds.

Offer a Payment Plan

Offering a payment plan may make it easier for financially burdened members to meet their obligations without the HOA resorting to more severe measures.

When dues remain uncollected despite reminders, HOA board members may need to take firmer steps as outlined by the HOA’s governing documents and state laws. Placing a lien on a property is a serious step that can lead to foreclosure. It’s typically a last resort and should only be considered after all other attempts to collect the dues have failed.

Collecting these overdue fees will boost your revenue, but you want to make sure your collection practices are ethical and fair. Be consistent and professional. Keep your collection efforts confidential, and work with your members to get these overdue balances caught up.

Rent Out Spaces

Rent Out Space

It’s possible that your HOA has some underused space that can be rented out for one-time events or even for long-term situations that bring in consistent revenue. 

Do you have a surplus of parking spaces? Consider offering those spots to people who might carpool or not have parking available in the area. Your HOA may also have storage sheds or other empty buildings on the property that provide you with rental income potential. Think about local yoga instructors who might need a space to teach classes or host private sessions. Maybe there are freelance or remote workers in the area who could use some private office space from time to time. 

We have seen HOAs host farmers markets or art walks where different vendors rent space and sell their creations on a weekly or monthly basis. Though some of these ideas may include some extra time and logistics management, there may be someone in your HOA who has experience with these types of events. You could also talk to your property management partner about how to coordinate the rental of these spaces. 

Think about your own real estate, too. Does your HOA have a clubhouse? Any of your recreational spaces such as pools or pickleball courts can be rented to outside customers for parties, presentations, fundraisers, and even conferences. Someone might want to host a baby shower or a retirement party, and if you have a clubhouse with a community kitchen, you can charge premium rates for those Saturday evenings or Sunday afternoons. Market to your own residents as well as local organizations and businesses. 

A business center or a co-working space is another great way to utilize the square footage you already have in order to make some money. You can provide ongoing rentals in your business center for those remote workers who need desk space and good internet. This could be attractive to your own residents who work from home and would be willing to pay for this space, as well as people in the area.

Before you consider adding new services or amenities, it makes sense to evaluate what’s already available. Utilize your space, because renting out these facilities for private events, classes, or activities outside of community use hours can attract extra income. You’ll want to balance these initiatives with the needs of your residents; you don’t want to disturb them or take away their own amenity usage. 

Invite Outside Vendors Into Your Community

Outside Vendor

We talked about the appeal of bringing people from the outside into your community when they’re willing to pay for your space. 

Think about what you can do to increase your revenue while also providing extra services to your residents. Here are a few ways we see this working:

Coffee Shops

On-site businesses like coffee shops allow local businesses to grow while providing a perk to your residents within the HOA. A small coffee stand that’s open for a specific set of hours is a great way to earn extra revenue.

Pet Groomers

We know how much people love their pets. Surely the pet owners in your community would love to have an on-site groomer or dog washer. Maybe even a dog walker? Invite these small businesses to do business in your community for a fee or a percentage of what they earn.

Hair Salons and Personal Services

If you have the space for a hair salon or a barber shop or even an occasional masseuse to come in and offer their services, you’re going to make your community a happy place to live, and you’ll also earn some extra revenue.

Housekeeping and Cleaning

Plenty of people are happy to hire a cleaning service to come in and do the sweeping and the scrubbing. Why not contract with a local service to provide this and earn some money for your HOA?

Partner with local businesses to provide services that residents value, such as landscaping or pet sitting, at discounted rates. The business gains consistent customers, while the HOA can negotiate for a portion of the revenue in return for exclusive rights within the community.

These are just a few easy ideas; your HOA board likely has some creative people who can brainstorm additional business ideas. You’ll likely have plenty of people within the community who have outside vendors in their networks. There’s a huge push for independent sales these days, whether we’re talking about merchandise or services. Let them make their offers in your community, and see how much extra money you’re able to earn for your budget. 

Sell Advertising Space

Advertising Space

One revenue stream that often goes untapped is selling advertising space.

Your HOA can monetize different areas by selling advertising space while maintaining the aesthetic and value of the community. Advertising offers a win-win scenario, where local businesses get exposure to potential customers, and your HOA generates extra revenue. 

Here’s what you need to consider before you start:

Target Local Businesses 

Partnering with local businesses that your residents already patronize not only provides them with targeted advertising but also strengthens community bonds.

Offer Various Formats

From newsletters and websites to banners in common areas, offering a range of advertising options can cater to different marketing needs and budgets.

Set Reasonable Rates

Price your advertising space to be competitive but also reflective of the value it offers. Consider the size and placement of ads in your pricing structure.

Maintain Aesthetic Standards

Any advertising should align with the aesthetics of your community. Set clear guidelines on the size, design, and content of the ads to preserve the area’s visual appeal.

Control the Content

Screen all ads to ensure that they’re appropriate and beneficial to your residents. Avoid controversial or irrelevant products and services.

Limit the Number of Ads

Too many ads can lead to visual clutter and resident backlash. Limit the number of ads to maintain a balance between revenue and community standards.

Assess the common areas in your community where ads could be placed without causing disruption or diminishing the look and feel of the neighborhood. Possible places include:

  • Clubhouses
  • Bulletin boards
  • Community websites
  • Event programs and newsletters

We especially like the idea of newsletter advertisements because many HOAs do send out a monthly newsletter. Selling ad space to local businesses gives you a consistent monthly income and adds value for your residents and advertisers.

Let’s Talk about Laundry and Vending

Introducing laundry and vending machines into your HOA isn’t just about convenience; it’s a strategic move towards building a more financially robust community.



Laundry facilities can serve more than the mere function of providing residents with a place to clean their clothes and linens; they can also become a steady source of income. For many residents, the availability of in-house laundry is a significant draw, and they are generally willing to pay for this amenity. They are likely to have their own washers and dryers at home. But, those sometimes break. Or, there’s a lot of laundry to be done and back-up is needed. Maybe new homeowners who have just moved in and not yet purchased these appliances will need somewhere to do their washing and drying.

By leasing or owning laundry equipment, an HOA can set prices that are competitive yet profitable.

To optimize this, consider installing energy-efficient washers and dryers that reduce water and electricity usage. This not only cuts down on utility costs but also aligns with environmental values—a selling point for eco-conscious residents.


Vending Machine

Everyone loves a snack, and vending machines are about much more than snacking. 

Vending machines are usually associated with snacks and drinks, but they can really offer just about anything. 

Strategically placed vending machines can provide everything from detergent and fabric softener to personal care items, catered to your community’s needs. Practical and convenient for residents, these machines require minimal effort for the HOA while generating additional income.

When it comes to vending machines, location will be a key part of your money making success. Make sure they’re easy to reach, and make sure that your residents know about them. 

Things to Know:

  • You’ll Need Management.

Running laundry facilities and vending machines will come with responsibilities like maintenance and restocking. HOA boards can partner with companies that specialize in these services. A lease or profit-sharing arrangement can alleviate the HOA of the maintenance burden while still providing added income.

  • Pricing Strategies and Usage Policies

Setting competitive pricing is crucial to ensure residents feel they’re getting value while the HOA generates revenue. Research prices at local Laundromats and balance with your utility costs to set fair rates. It’s also important to establish clear usage policies to maintain the machines and ensure they are a benefit to the community, not a source of conflict.

  • Advertise these Amenities

Make sure residents are aware of the facilities and vending options available. Newsletters, community bulletin boards, and welcome packages for new residents can all be used to promote these amenities.

  • Be Attentive to Legal Considerations

Before implementing, it’s essential to review your HOA’s bylaws and any state laws concerning revenue collection from such facilities. Transparency with residents about how the generated revenue will be used can promote a sense of community and trust.

Take an informal poll among your residents to assess the desire for such facilities. We believe that such facilities could not only meet a practical need but also strengthen your community’s financial health.

Investing to Earn HOA Revenue

Investing to Earn Revenue

Disclaimer: We are not financial advisors; we’re property managers and an HOA management expert. If you’re going to invest money that belongs to the HOA, we recommend that you talk to a financial planner who understands the risks involved and the unique status of your association. 

The primary role of an HOA is to manage and maintain the community. With this in mind, any consideration to making investments should be approached with caution, thorough research, and professional advice.

HOA funds that are collected from homeowners are considered to be held in trust, which means that board members have a fiduciary duty to manage them with care and prudence.

Investing inherently involves some level of risk. 

Therefore, board members must consider whether investment aligns with their fiduciary duties and what levels of risk are acceptable. Safe, low-yield investments such as certificates of deposits (CDs) or high-quality bonds may be deemed more appropriate than the potentially higher returns – but much higher risks – of the stock market.

Before any investment decisions are made, transparency with the homeowners is vital. Holding a community meeting to discuss potential investment strategies allows for input and helps ensure that everybody’s on the same page. It’s crucial that homeowners understand the reasons behind investment decisions and how they might impact the community.

For HOA board members, exploring the possibility of investing to increase revenue can be part of managing the association’s finances astutely. But it should be handled with care, always bearing in mind the trust placed in you by your community.

These are some of the most creative ideas we gathered for HOAs in Winston-Salem and beyond who are looking for ways to increase revenue without assessing new fees or raising the dues on homeowners who likely already feel financially strapped. 

If you’d like to hear some of our recommendations that are specific to your community and your location, please contact us at Capstone Realty Consultants. We’d love to share some personalized ideas with you.