Condo Maintenance Fees
Condo maintenance fees (also referred to as common area expenses) are set by the Board of Directors who is elected by a majority of the condo owners. The fees are based on the projected financial needs of the association for the upcoming year.
By law a reserve fund to cover future capital improvements is included in the fees. Future capital improvements cover such things as replacing the roof, exterior painting, parking lot resurfacing, etc.
A typical budget for a condo association will include insurance on the structures, salary for a resident manager as well as groundskeepers and maintenance personnel, trash collection, water, common element electricity, the reserve fund and other line items.
Some times maintenance fees include electricity for each individual unit. This may account for higher maintenance fees that you may sometimes encounter.
Other reasons for high maintenance fees may include: rebuilding of reserves via special assessments, special assessments for emergency repairs or an older complex which has a fair amount of regular maintenance.
Generally, oceanfront properties have higher maintenance fees than non-oceanfront condominiums due to the added insurance for tsunami inundation and floods
But for many people, the maintenance costs involved with living in a condominium are offset by expenses they used to have when they lived elsewhere.
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