Buyers interested in condos always have negative feedback about condo fees. I am here to tell you the truth about condo fees. They actually aren’t that bad. I hear things like, “Condo fees are a waste of money”or “I would never pay more than X in condo fees.” I understand the desire to build equity and concern over your monthly payments. However, condo fees are a necessary part of owning in a multi-family complex and actually provide more benefits than you think.
Condo Fees Cover Some Utilities
Many condo fees cover the cost of a few utilities: usually trash, sewer, gas, and sometimes even water. These aren’t huge costs but they can add up. Some people find it useful that all these fees are baked into one monthly cost.
Building Maintenance
Maintaining the common areas is critical to the overall enjoyment of your home. A clean lobby, nice landscaping, and upkeep of any common gathering space like lounges and rooftops all require money to maintain.
Maintaining a Healthy Reserve
Every well run condo building has a healthy reserve fund. This an account for any major building expense. For example, replacing the roof or renovating the lobby. Without a healthy reserve, you could be faced with a special assessment. A special assessment is a temporary increase in your monthly fee that helps pay for a project that goes beyond what is available in the reserves. A portion of your condo fees goes towards maintaining this critical fund.
Condo Fees Pay for Amenities
If you want all the bells and whistles of a fancy new apartment building, you are going to pay a pretty penny in fees. Any large building with amenities like a 24 hour concierge or pool has to charge high fees in order to maintain these luxuries.
Condo fees may seem annoying but they serve a critical role in maintaining the value of your home.
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