realtyreport
Fee Falsehoods
Condo fees are part and parcel of condominium living. Still, there are a few misconceptions out there about monthly dues — let's get them cleared up right here.
- Misconception 1: The lower the condo fees, the better. Actually, when it comes to condo fees you get what you pay for. A condo with low fees may be tempting, but it's likely ill equipped to meet its financial obligations. Higher fees typically mean higher quality services and that the condo has enough money to cover its expenses.
- Misconception 2: Condo fees are the same for every resident. Not so. Your share of fees is proportionate to your unit's relative value to the total value of all the units, value referring to a unit's square footage or fair market value. So residents whose units are bigger or more valuable will pay higher condo fees than owners of smaller, less valuable units.
- Misconception 3: You'll never be asked to contribute more than your monthly fee. Sometimes, condos are met with unforeseen expenses or repairs are so costly the reserve fund is inadequate to pay them. In such cases, the condo may levy a one-time charge to every unit to cover the cost.
- Misconception 4: Condo associations profit from monthly condo fees. Condo associations are in fact not-for-profit organizations whose job it is to oversee the condo's day-to-day operations on the residents' behalf — that's what your fees are used for. Those carrying out such operations are often volunteering unit owners.
