Many people searching for homes consider buying condominiums for a number of reasons. Condo communities are typically built in ideal locations – close to shopping and dining and, depending on where you are geographically, local attractions like the beach. A condo owner usually does not have to worry about lawn care and other home maintenance, although may have to to follow certain covenant guidelines as far as design and renovation is concerned. One reason why some possible home buyers may feel reluctant to buy a condo is the fee structure that accompanies it. You may pay a monthly, quarterly, or annual fee depending on where are you, but it is good to know exactly where that money goes before you decide to offer a bid.
So when you buy a condo, where does that fee money go? Well, depending on the size of the community, you will either pay a fixed sum each month or find that your fee assessment varies according to the growth of your neighborhood. Your condo association board typically determines the fee structure and budgeting for the money collected. It may go toward paying a variety of expenses, including:
Home and lawn improvements: The condo board may hire a scenery company to come in regularly to continue the lawns and shrubbery around homes, the building unit, and other character. Minor home repairs and improvements like exterior painting, balcony and deck repair, and other general maintenance may also come out of these fees.
Security and payroll: Most condo communities have staff on hand to assist possible buyers and residents. These could be on-site caretakers, marketing staff, and security officers for gated communities. The fees you pay may contribute to their paychecks.
Access to and maintenance of shared areas. If you live in a community with a swimming pool or fitness center, the fees you pay go toward maintaining those facilities – strength bills, new equipment, and repairs.
Emergency sets. It is not uncommon for a condo board to save a set amount of money in the budget for emergency situations, like buy and maintenance of a strength generator following an outage, or repairs to the general strength plant.
The condo fees you pay are designed to help continue and beautify the area in which you live. If you have concerns about rising costs, you may consult with your condo board for a clearer idea of your association’s annual budget.