Your Condo Association Fees
What do they cover?
There are going to be small differences in what the monthly condo fees cover. Best way to get an exact view is to review the condo association budget so you can see each line item. The fees are generally determined by the size of you unit. Your % is based on the square footage in the condo documents.
The Condo fees in all cases are going to cover the exterior insurance, upkeep of the building, water, garbage,termite contract and the upkeep of common areas. The management is paid through the condo fees. The common security is paid in the dues. You generally get the water paid for but not the electectricity in your unit.
You are responsible for the a/c and heat in your unit in most cases. The Federal Fibre Mills has a central system so the central system and the electric to run it are in the condo fees. This however is a rare instance.
Each association will take a certain per centage of each monthly payment and put it in a reserve account for future projects and possible emergency uses. Lenders want to want sure that 10% of the annual fees are in reserves. The annual budget will shopw you these numbers.
When you have a large condo assoication then the dues are split among many more units and the dues tend to be cheaper. When you have large staffs then the fees are generally going to be higher because there are more salaries to pay.
Assessments are voted on by the members. The assessments are to take care of a problem or to update the common areas of the condo association.
The seller has an obligation to tell you of any future assessments. The lenders will double check this as well. The management should also let you know.
Many condo associations make new buyer contribute 2 to 3 months of condo fees into the reserves. This is common and we find this out from the listing agent or the manager of the condo association. This helps build up reserves. The seller does not get his reserves back when they sell.
Example of Condo Budget, Line Items
This will give you line items to see all the things that are covered in the fees. Best way to explain what the fees cover.
Common Areas, Upkeep in Fees
Condo Fees Cover Upkeep and Improvements of Common Areas
Fees Cover Security and Condo Management Staff
Fees Cover Improvements that Owners Vote on. Big Improvements at Bakery Condos