What do my condo fees include?

Some buyers are turned off by monthly dues paid to a condominium association. You’re going to have utilities and a mortgage, why pay an additional fee every single month?

On the flip side some buyers see a great benefit to paying the monthly dues as they offer benefits not available to other areas.

So what are these condominium association fees exactly?

On the flip side some buyers see a great benefit to paying the monthly dues as they offer benefits not available to other areas. So what are these condominium association fees exactly?

To understand this question you must first comprehend just what a condominium is made up of; common elements and the individual dwelling unit. The dwelling unit is what you buy to live in, the common elements include lounges, rec rooms, pools, lobbies, walkways, gardens, etc.

Mechanical and electrical services are part of the structural element which is a common element so when you own your unit you share these common elements and it cost money for their operation and maintenance.

Every owner has an interest in the common elements as they directly impact the value of their individual unit. This makes the condominium a good investment and a fun place to live.

Here’s how the fees work, you (as an individual owner) pay a monthly fee for your portion of the operating expenses on the common elements.

Some of the fee will go to a reserve fund (in the event of an unforeseen expense or major repair needed). Your fees cover things such as property management fees, utilities, building repair/maintenance, insurance policies, internet/cable, condominium staff salaries, and upkeep of common areas (snow removal, painting, cleaning, landscaping, etc).

Here are a few examples of benefits of the condominium fee:

  1. no more gym memberships to pay
  2. no expensive internet service
  3. bulk cable packages and
  4. last but not least TIME!

The maintenance and upkeep of the property doesn’t have to take up your entire weekend anymore!

The condominium will have a budget showing what is and is not covered by your monthly fee so it’s important to know the details of each specific development. These will also be listed on the seller’s disclosure statement.

Some side notes, fees may be adjusted over time to offset economic factors and external problems/issues. If there is ever an overestimation of expenses you won’t get a refund, the money will be applied to future expenses.

The monthly fees are not negotiable even if you don’t have the desire to take advantage of the amenities that the development has to offer.

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