In the event you live in a community of single-family homes, you may end up paying monthly or annual homeowner’s association (HOA) fees. In the event you live in a condominium community, you’ll as a substitute be on the hook for condo fees.
While the 2 fees aren’t totally interchangeable, they do serve similar purposes, they usually can add — sometimes quite a bit — to your costs as a home-owner. On the flip side, additionally they help ensure your amenities and community are well-maintained, and so keep your property value up.
Condo fees, then, are a part of what you might want to find out about buying a house in certainly one of these communities. Here’s more about what these charges cover and what they’re more likely to cost you.
What are condo fees?
Condo fees are a kind of fee paid by owners of individual condo units. They go toward your entire condo community or complex that your unit is positioned in, they usually’re paid by every owner who lives there, often on a monthly basis.
The goal of a condo fee is to support the needs of the larger community. The cash goes toward things like maintaining shared spaces, constructing exteriors, grounds and amenities, in addition to paying for services like insurance, utilities, landscaping and more. (Note, it is important to know what your personal condo insurance and that of the association cover, to assist you know who must file a claim when damage occurs.)
What do condo fees cover?
Condo fees are designed to pay for the shared expenses of a condominium community and might cover a big selection of expenses and services.
These might include:
- Landscaping: Condo fees are sometimes used to make sure the grass is well-tended, flowers are planted usually and shared green spaces are maintained and healthy.
- Maintenance of exteriors and shared areas: While condo owners are liable for maintenance and repairs inside their individual units, it’s condo fees that cover repairs and maintenance elsewhere. This includes the skin of buildings, walkways, parking lots, hallways, elevators, exterior doors, gates and other features which can be utilized by all residents.
- Amenities: Condo fees also help pay for on-site amenities, like pools, security services, fitness areas, dog parks, etc.
- Insurance: Whilst you’ll need an insurance policy in your individual unit, your larger community needs property insurance, too, to cover jointly owned assets. Condo fees help pay your portion of this cost.
- Utilities and services: In case your complex has any garbage, recycling, or other utility services, these are paid for out of the condo fees collected from all residents.
- Staffing: If you will have an on-site property manager, maintenance, or other staff, condo fees will go toward paying their salaries.
- Security: Whether you will have an on-site security guard, a monitored property-wide security system or another security measures, this might be paid for through condo fees.
- Reserves: A portion of condo fees also goes toward your community’s money reserves, which it uses to cover unplanned expenses and emergencies.
The precise expenses condo fees cover can vary, so be sure you check over your community’s Declaration of Covenants, Conditions and Restrictions (also called CCRs) before buying in. You may also ask the condo association for a replica of its annual budget to get a feel for where those fees go.
What condo fees don’t cover
Condo fees include a big selection of costs and services, but they don’t pay for the whole lot. As an example, they won’t cover any of the prices for individual units — like your personal home insurance policy, your property taxes or, most often, your individual utilities.
These fees are just for community-wide expenses, so anything that pertains to simply you and your property is probably going not covered. Check your CCRs to make sure, though.
How much are condo fees?
Condo fees can vary widely across communities. The scale of the community, the amenities it includes, its location, and other aspects can all play a job. For instance, a community that requires regular snow removal for 4 months out of the 12 months could have a costlier condo fee than one positioned in a more temperate climate. You may additionally pay more in case your community has a pool, spa, gym or other shared amenity.
Generally speaking, condo fees can range anywhere from $50 a month to upwards of $1,000, in line with property management firm Condo Manager. The typical sits at around $300 to $400 per thirty days.
Again, though, the precise cost you’ll pay must be spelled out in your community’s CCRs, which you’ll review before closing.
Pros and cons of condo fees
Nobody desires to pay greater than they should for housing, but there are some advantages to paying condo fees. For one, the income that fees raise result in a better-maintained complex, which helps to maintain property values high locally.
By taking good care of requirements akin to exterior painting, the payments may also reduce the quantity of maintenance you might want to do as an owner and might allow your community to supply amenities like an on-site gym, pool or security guard.
On the downside, the fees do mean increased out-of-pocket costs – and, depending in your community, potentially loads of them. These payments could strain your budget, especially if fees increase over time (a fairly regular occurrence in lots of communities).
Condo FAQs
How much are most condominium fees?
Condo fees can vary widely. Some communities charge as little as $50 per thirty days, while others can charge upwards of $1,000. It will depend on your location, the amenities in your complex, and other aspects.
What do condominium fees cover?
Condo fees pay for maintaining shared spaces, on-site amenities, property-wide utilities and insurance, staff salaries, exterior repairs, landscaping and more.
Why do condos have so many fees?
Condos have fees to cover the prices of maintaining shared areas inside the community, in addition to such shared expenses as insurance for common areas. While individual condo owners are liable for the prices of their units, condo fees go toward expenses faced by your entire complex — exterior repairs, landscaping, staffing, security, etc.