anyone live on a 'private' road? splitting up costs question

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
HomeStretch
Posts: 5403
Joined: Thu Dec 27, 2018 3:06 pm

Re: anyone live on a 'private' road? splitting up costs question

Post by HomeStretch »

$1500 divided by 6 homeowners is $250 each. For such a small amount, just split evenly at $250 each.
SQRT
Posts: 1474
Joined: Sat Feb 05, 2011 9:44 am

Re: anyone live on a 'private' road? splitting up costs question

Post by SQRT »

White Coat Investor wrote: Sat Nov 07, 2020 8:16 pm I've only lived on a private road once. We were the 3rd of 4 houses. It was split equally.
Our lake house is on a private road. About 10km long plus spurs. Maybe 100 people on it. Split equally with a cost of about $250/ year. I would recommend an even split. Too complicated otherwise and not a big enough amount to worry about. These things are best kept simple.
User avatar
JoeRetire
Posts: 6661
Joined: Tue Jan 16, 2018 2:44 pm

Re: anyone live on a 'private' road? splitting up costs question

Post by JoeRetire »

Divide by 6.
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.
AB609
Posts: 56
Joined: Thu Oct 17, 2019 9:02 am

Re: anyone live on a 'private' road? splitting up costs question

Post by AB609 »

F150HD wrote: Sun Nov 08, 2020 11:31 am
stan1 wrote: Sun Nov 08, 2020 11:10 am
AB609 wrote: Sun Nov 08, 2020 11:03 am We just did a $30K resurfacing project on the road this year and we split the cost evenly and nobody complained.
Helps if everyone has a lot of money.
yep. not many have $10k liquid. On this board? maybe, gen pop, no.
We collect semi annual dues for road and common area maintenance including long term future projects. Enough extra has been collected over the last 10 years to largely fund the expense of the road resurfacing.
User avatar
Elric
Posts: 310
Joined: Sat Dec 08, 2018 12:23 am
Location: Virginia
Contact:

Re: anyone live on a 'private' road? splitting up costs question

Post by Elric »

AB609 wrote: Tue Nov 10, 2020 11:14 am We collect semi annual dues for road and common area maintenance including long term future projects. Enough extra has been collected over the last 10 years to largely fund the expense of the road resurfacing.
If this is not a formal HOA, mind if I ask who collects.the money and how it is held, and by who? We're supposed to do that for our private shared drive, but it's never been done.
"No man is free who works for a living." | Illya Kuryakin
flarf
Posts: 113
Joined: Tue Sep 25, 2018 2:05 pm

Re: anyone live on a 'private' road? splitting up costs question

Post by flarf »

Elric wrote: Tue Nov 10, 2020 11:19 am If this is not a formal HOA, mind if I ask who collects.the money and how it is held, and by who? We're supposed to do that for our private shared drive, but it's never been done.
I have a house on a private road ("A"), which is located off a separate, larger private road ("B").

Only 3 houses on are A. There's no formal HOA to handle road maintenance. One owner on A collects the money and pays for grading and plowing. There's no separate entity or bank account; the total annual expense is about $5k. The extent of documentation is a quick e-mail with the totals that have been paid and the amount requested.

There are about 20 houses on B, which has a HOA solely for road maintenance. It's just been a bit more formalized, since the guy who lives on B who has been collecting/disbursing the money for 30+ years is getting up in years and wanted a succession plan.

We definitely have issues with people on B who refuse to pay their share, and there's little recourse. It's easy when everybody plays nice, like on A.

My attorney discouraged me from buying the property solely because it was on a private road. I've heard that prior owners looked into deeding B to the town, but the grade is too steep in certain areas and the town refused. The latest quote for paving was $4 million, so it'll be gravel and shale forever.
RubyTuesday
Posts: 509
Joined: Fri Oct 19, 2012 11:24 am

Re: anyone live on a 'private' road? splitting up costs question

Post by RubyTuesday »

As pointed out by another, A gets benefit of “overhead” costs of getting the road maintenance crew there, etc.

If the cost were more expensive, I would find out what the “minimum” fee would be to have the contractor do the job, split that amount evenly, and then apportion the remainder by length. But with such a small amount, I would be fine splitting evenly.
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
AB609
Posts: 56
Joined: Thu Oct 17, 2019 9:02 am

Re: anyone live on a 'private' road? splitting up costs question

Post by AB609 »

Elric wrote: Tue Nov 10, 2020 11:19 am
AB609 wrote: Tue Nov 10, 2020 11:14 am We collect semi annual dues for road and common area maintenance including long term future projects. Enough extra has been collected over the last 10 years to largely fund the expense of the road resurfacing.
If this is not a formal HOA, mind if I ask who collects.the money and how it is held, and by who? We're supposed to do that for our private shared drive, but it's never been done.
There is an HOA. One of the neighbors acts as the "secretary" and collects the dues. There is a separate bank account and and PO box and the secretary takes care of paying the bills and collecting the dues. We usually have a meeting about once a year and get an accounting of the funds.
bighatnohorse
Posts: 352
Joined: Thu Oct 13, 2016 4:04 pm

Re: anyone live on a 'private' road? splitting up costs question

Post by bighatnohorse »

Yes. 22 homes on our street. Cost evenly split.
Why? All homes on the street share property values equally based partly on the road condition.
Legally, all home owners could be sued in a class action suit if there was a problem with the road condition - yeah, go argue that one!
Our road cost $2500. per home - the road surface was demolished, ground up, compacted and then paved over - brand new road.
The contractor required a lien on each home. We formed a 503c HOA just to get this done.
Keep it simple - split the cost.
Mr.Chlorine
Posts: 175
Joined: Fri Sep 13, 2019 9:17 am

Re: anyone live on a 'private' road? splitting up costs question

Post by Mr.Chlorine »

I grew up on a road that was built private then became city. At time of annexation there were 9 homes and 1 business that shared access similar to OP's map. Maybe 10 years after becoming city, it was decided the gravel road needed paving. This trickled down to the residents in the form of 'specials' and was allocated evenly, regardless of how much of the road you used.

My family was in the middle so it did not have much impact; prorated or even split. If I were in charge of making a similar decision, most instances I side with an even split between all parties.
Post Reply