If you’re considering purchasing a condo, it’s important to understand the fees that come with homeownership. Condominium fees often vary drastically from building to building, and understanding what they cover and how they’re calculated can help you make an informed decision about your purchase.
What is a condo fee?
Also known as Homeowners Association (HOA) fees, condo fees are payments made by condo owners to a condo association in order to cover the costs of shared amenities and services. The amount of the fee can vary greatly, but it’s typically a set monthly or yearly amount.
What do condo fees cover?
Condominium fees can be used to cover a wide range of expenses, including (but not limited to) the following:
- Maintenance and repairs for common areas
- Insurance coverage for the condo building
- Staffing costs (e.g., security, janitorial services, etc.)
- Utilities for common areas
Who sets condo fees?
The condo fees for a given building are typically set by the condo board. This is a group of condo owners who manage the day-to-day operations of the condo association per the guidelines of condo law.
How are condo fees calculated?
Condo fees can be calculated in a number of ways, but one common method is to divide the total expenses of the condo association by the number of units in the building. This can result in different condo owners paying different amounts based on the size or type of their unit.
It’s important to note that condo fees are not always equal to the actual expenses of running the condo association. In some cases, condo boards may choose to save money in order to build up a reserve fund for future expenses.
While condo fees may seem like an extra cost, they actually provide a number of benefits for condo owners. Usually, for instance, condo fees can help to keep your property well-maintained, protect your investment and provide you with peace of mind.