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RonaldS6 (Florida)
Posts: 3
Posted:
We have a tennis instructor that pays a fee for the community to give lessons for resident and non-residents, also the community charge a fee of 10.00 for each non-resident. The fixed charged is higher than the total cost of maintenance of all courts. When asked about profit the board response was that the money is investing in other things in the community. Since 80% of the people on the tennis program are resident and they charge for non-resident are the residents paying more HOA fees than the others since the total cost is lower than the fix payment and for external residents they charge extra?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Confused. Is the Tennis Instructor employed by the HOA? If so, then where is the profit coming from exactly? If not, then does the Tennis Instructor pay rent for giving their lessons?

The profit is from the rental use fee or from their charging people to take lessons?

Former HOA President
JanetB2 (Colorado)
Posts: 4,219
Posted:
When you state:

"Since 80% of the people on the tennis program are resident and they charge for non-resident are the residents paying more HOA fees than the others since the total cost is lower than the fix payment and for external residents they charge extra?"

From what you potentially stated before, this sentence it appears that potentially "Residents" are free and "Non-Residents" pay $10.00. This does not appear to have anything to do with HOA fees. HOA fees will be based on your governing documents.

However, I have to admit your post is a bit confusing with regard to your statements.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Ronald,

lets see if I understand what you are saying:

You have an individual who pays a fee to the Association to use the courts to give lessons.
The Association also charges $10 to every non-residents for those lessons
The Association does not charge additional fees to residents who take lessons

The income received from the instructor and non-residents exceed the cost of maintenance on the courts.

Your question is, are residents paying more then non-residents regarding the tennis courts?

Keep in mind that general maintenance (cleaning,lighting,nets etc.) is not the only expense associated with the courts.
Funds also need to be set aside in the Reserves for resurfacing and replacement of the courts, fences, etc.
Additionally, insurance rates may be higher and code requirements may need to be met for opening the court to the public.

Personally, I wouldn't worry about it.
If one were to really break down what your assessment pays for each month, I think you would be surprised at how little actually goes toward amenities (looking at the big picture).

Overall, since the income being received by the Association for the courts are being used within the Association, overall assessments are likely lower then they would be if the tennis instructor arrangement was not in place.

hope this helps,

Tim
RonaldS6 (Florida)
Posts: 3
Posted:
Thanks to all.
Clarification:
- The instructor are charged a fix fee per month to use 2 courts out of 4 during 8 hours per day
- Each non resident pays an additional fee
- The total cost of court maintenance and repair (4 of them) are lower than the fix charge
- As a resident we pay the instructor for classes
- Outside instructors contracted by a resident directly to give private lessons does not pay any fee
- The instructor has an insurance as per the HOA rules
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By RonaldS6 on 08/31/2017 4:32 AM

- Outside instructors contracted by a resident directly to give private lessons does not pay any fee

nor should they.
That instructor is there as a guest of the member.

It's just as if you brought in a guest who plays tennis better then you to give you pointers.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Ronald

What is your end game. What do you want?
RonaldS6 (Florida)
Posts: 3
Posted:
My point is are we paying more for HOA indirectly?
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By RonaldS6 on 08/31/2017 4:32 AM
Thanks to all.
Clarification:
- The instructor are charged a fix fee per month to use 2 courts out of 4 during 8 hours per day That is good and covers the cost of maintaining.
- Each non resident pays an additional fee Non Residents should pay a fee ... After all residents are the individuals who pay to maintain the area.
- The total cost of court maintenance and repair (4 of them) are lower than the fix charge It is great if you receive more than what is needed to maintain a common area. This in turn helps reduce all owners HOA fees.
- As a resident we pay the instructor for classes OK ... The instructor if paying a fee to use courts needs to recoup ... plus needs to make profit for their time for tennis instruction. Sorry ... nobody works for free.
- Outside instructors contracted by a resident directly to give private lessons does not pay any fee ??? Why??? All should be treated equal. If one pays a fee then all others should also pay same fee.
- The instructor has an insurance as per the HOA rules. That is awesome and should be same for all ... this eliminates HOA liability in case of any accident. Kudos to this instructor.


I potentially do not see where your HOA could be paying more in\directly ... instead it appears they are making an effort to cover the costs of the tennis courts above and beyond what the Owners would pay.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By TimB4 on 08/31/2017 12:29 PM
Posted By RonaldS6 on 08/31/2017 4:32 AM

- Outside instructors contracted by a resident directly to give private lessons does not pay any fee


nor should they.
That instructor is there as a guest of the member.

It's just as if you brought in a guest who plays tennis better then you to give you pointers.

Amend my above comment on this issue ... Tim made a very good and valid point. I initially read it differently, but the way Tim pointed out the issue is valid and I would agree.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
I am not sure what Ronald wants:

1. Increase cost to outsiders as costs are not being covered thus the overages are coming out of the owners pockets (dues) as in the owners are paying for it.

2. Costs are being covered so owners should get a rebate/refund.

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