Where Are Those Condominium Fees Going
Condominium associations continue to rise in popularity across the United States and many New Jersey residents are starting to add them as a potential candidate for their next home. There are plenty of reasons why buying in a condominium community is a great idea. As potential homeowners research options, they are likely to encounter the term “condominium fees” or “maintenance fees”. Before purchasing a condo, it is important that prospective buyers understand what condominium fees are and how they impact their living situation.
What are Condominium Fees?
A condominium fee or maintenance fee is a fee that the residents in condominium community pay in addition to their monthly mortgage and taxes. All condo owners are required to pay this fee, and cost can vary depending on the location and size of the property.
Where do Condominium Fees Go?
Many condo complexes include access to shared amenities. Owners no longer have to pay expensive memberships to belong to the local pool or fitness center, and they have access to additional benefits like community picnic areas and playgrounds.
- Maintenance of Common Areas
Condominium owners are responsible for the ongoing upkeep and maintenance of general areas including the amenities listed above. Other areas that require maintenance include hallways, lobbies, and the shared heating and cooling systems.
- Exterior Maintenance and Upkeep
Parking lots, covered garages, and sidewalks also require continued maintenance throughout the year that is funded by these fees. In addition to upkeep, fees also include snow removal and lawn care costs.
Some associations offer security systems or guards to assure the property is safe 24/7. Fees pay the cost to employ individuals, purchase equipment, and update equipment when necessary.
- Employee Salaries or Management Fee
Some condo associations have full and part-time employees and others outsource daily responsibilities to a property management company. These expenses are paid for with condominium fees.
- Utility Bills
Another potential benefit of owning a condo is reduced internet expenses or no monthly utility bills for water or sewer usage. While not all associations have utilities included in their fee, some condo owners enjoy the benefits of communal utilities.
- Reserve Fund
Any additional fees that are not utilized for monthly expenses are deposited into a reserve fund for future expenses. Sidewalk repairs, parking lot repairs, and roof replacements are just a few expenses that associations may need to prepare for long-term, so owners don’t receive an unexpected bill when repairs like these are necessary.
AR Management is a full-service property management company that helps condo associations with the daily responsibilities of properly managing a community. For additional information, contact us today.