So you want to buy a condo? Be sure, as you are assessing properties that you ask a lot of questions about the fees. What they cover… are they unusually high? or unusually low? Is it in your budget?
Every condominium complex has a condo fee – generally speaking, the units in the buildings are assessed based on their individual part of the total – so 
larger units = higher fees; smaller units = smaller fees. Fees usually cover items such as building maintenance, a master insurance policy, parking lot maintenance, some, if not all, of the utilities (MOST cover water, sewer and trash – some go on to cover gas, electric, heat, A/C, etc…), elevator maintenance, management, amenities (pool, tennis, party room, exercise facilities, etc) and more. There are general rules of thumb that we use around here – older high-rises tend to have higher fees that usually cover all utilities. Newer buildings tend to have lower fees.
When looking at the fee and how it fits into your budget there are a few things to keep in mind.
- Does the fee off-set any costs that you would already incur – such as utilities, gym membership, pool/tennis access, parking?
- Are you unnecessarily paying for things you won’t use?
- What peace of mind will it bring you to know that you don’t have to care for a roof, a fence, a basement, exterior trim/maintenance, a garage, etc…
I’ve certainly been guilty of saying “be wary of high condo fees because it’s like flushing money down the toilet” but I can tell you that there are times when it’s worth every penny. You just need to make a decision that works for you.
Happy Tuesday
Jennifer
Why does an owner with more sq. footage living space in a condo, pay a higher “condo fee,” when all the costs for common space maintenance should be equal for each individual owner?
Examples:
Exterior building maintenance and preventive maintenance
Grounds maintenance
Trash removal
Snow removel
Administrative costs for the association, etc.
Because I have and pay a higher mortgage for my unit, why does that mean I have to pay a higher fee? There is nothing that benefits my unit in anyway by paying the higher fee. All the cost for services in the common areas are the same regardless of the size of each unit.
Thanks for your comment, John. I didn’t make up the rules, but I can shed some light on the suppositions… the only way the association has to set guidelines is to “assume” that the larger the unit, perhaps the more occupants. To your example above, if you have 4 people living in your unit, that’s 4 people walking across the floors, tracking in dirt, snow, etc… 4 people making trash, etc… also, water and sewer are covered in most condos, and thus an increased occupancy would use more of those resources. Same is true for any shared facilities like an exercise room, pool, etc… the more occupants, the more it costs.
Again, I didn’t make the rules, but it probably works out equitably for everyone maybe 75% of the time.
If you’d like to investigate other options (townhomes or single family) give me a call – I’d be happy to talk with you at any time.
Jennifer Klaussen
703-593-0877
http://www.theArlingtonDirt.com (new blogsite)
With new construction in the current market – how is the Condo Fee apportioned when a substantial percentage of the units are unsold? Does the builder bear the cost – or do the tenants have to pay the full cost of maintaining the entire building.
By Tenants of course I meant Owners ocupying the units.