Do fancy amenities enhance the value of your investment? What should you look for when it comes to condo maintenance fees? Consider this:
Things that determine your monthly fees
You’d still have maintenance fees if you owned a home. In a condo, they are divided up throughout the whole building. For example, instead of saving money to update your home’s windows or roof, the condo corporation divides the expense among every unit owner. Your fees generally cover building maintenance, amenity wear and tear, repairs, salaries of anybody employed by the corporation, and more.
What you pay per month is based on the unit’s square footage.
You can expect to pay more if you have a larger unit. Maintenance fees range anywhere between fifty cents to over two dollars per square foot.
What can contribute to higher fees?
Consider that parking, storage lockers and similar features of a unit could add to your monthly fees. Luxury amenities such as pools, (especially indoor pools), sports courts, valet parking, and some common shared areas could top your fees over a dollar per square foot.
Condos are also required to have a reserve fund as well, which is an insurance fund that covers any sudden and large expenses that the condo may need to cover
How are the fees set?
The board of directors set your monthly fees. A great way to lobby for fees that fit a fair model is to get involved on your condo’s board of directors. Not your cup of tea? No problem – as a unit owner, you’re most entitled to vote for other candidates you think are a good fit. You’re also entitled to view the documents that discuss where all the fees are going, so you can check out all the financial records of the building.
Ultimately, condo fees are an important factor that need to be considered into potential costs, whether you’re an investor or an end-user. Talk to a realtor to see how you can ensure your investment is a good one.