If you’ve ever spoken to a condo owner, you probably heard about the fees condos charge. At times, the maintenance fees alone can be more than a condo’s mortgage. Feeling shocked about it? You are not alone—not by a long shot! To many people, this might not make sense. You own the property, so why does it feel like you’re paying rent? Most people who own condos are shocked to see their monthly maintenance bills tall up hundreds of dollars. However, it shouldn’t be surprising. Condos take a lot of money to run. And, as it turns out, there’s a lot that condo fees do for people who live in their communities. Did you ever wonder what condo fees cover, and why they are so steep? The answer might surprise you, and also help you learn about the value of paying your monthly fees.
How Are Condo Fees Determined?
Unlike most other types of real estate fees, condo fees are generally calculated by dividing the total cost of running the condominium community by the square footage of each condo. Most condo maintenance fees cover things that the HOA is expected to run, plus the salaries of any HOA specialists on your board. If you have a larger condo, then it’s only to be expected that you would support more of the maintenance. You’re getting a proportionately larger share of the condo perks—literally. A typical condo maintenance fee is between $0.30 to $1.00 per square foot, per month. So if you have a 1200 square foot condo, that means you might have to spend up to $1200 for the maintenance fees in an exorbitantly priced community. Thankfully, most places are cheaper than that. Most people only pay up to $700 per month.
What Do Condo Fees Cover?
When you’re stuck paying an arm and a leg for maintenance fees, you’re bound to wonder what do maintenance fees cover in a condo. It’s a reasonable question. Most fees deal with building and landscaping upkeep, along with upkeep for communal areas like the condo gym or pool. Along with these basics, you may also be paying administrator salaries, security guards, upgrades to your condo community, special events, taxes, certain insurance policies, as well as important safety inspection fees. In other words, those fees are there to make sure you have a good time while you live in your condo. If something is meant to be the work of the condo association, chances are the fees you're paying are what make it happen. If you are expected to do that maintenance, then it'd be an out-of-pocket cost.
Can My Condos Renters Cover My Condo Fees for Me?
It's no secret that many condo owners choose to float their bills by renting out their condos. It's often allowed, so why not? If you are looking to rent out your condo, it’s important to remember that your renters are never legally obligated to pay your maintenance fees for you. You, the owner, will be expected to pay those fees regardless of whether your condo has been rented out or not. If you want to have your renters cover the fees, you will need to raise their rent so that their monthly payments cover the bulk of the fees. Even then, it’s best to keep money aside just in case you can’t find a renter who can afford the condo you’re renting out. Thankfully, this is one of many ways you can cover this expense. After all, every condo has different ways of making it work for you.