What are Maintenance Fees?

Did you ever wonder what is included in maintenance fees when you buy a condo?

Along with your mortgage and taxes is the monthly maintenance fee, which is another major expense when owning a condominium.  Your condo fees typically cover what is normally paid separately in the ownership of a home.

How are maintenance fees determined on Condo buildings:

The condo owner owns the interior of the unit and a percentage moneygof common ownership.  Common ownership is based off of square footage of the interior in comparison to the entire buildings’ square footage.  Unlike a co-op, your maintenance fees in a condo building do not give you a “share” or “ownership” of the building.  Co-ops are generally more expensive on the fee side, because you are actually buying into equity of the entire building.

Condo fees will generally be the following items:

Water: Common water is supplied to the building, however to heat the water, condo owners are usually responsible for their own water heaters, which are normally carried over in a sale.  Water heaters are typically ran on natural gas, so the only expense to occur for the condo owner is on their natural gas bill.

Master Insurance Policy: Your exterior walls are covered by the blanket insurance policy provided in this Master insurance policy.  If there is a water leak on the 28th floor of a building and it effects all units below it, your master insurance policy would cover it.  However, if the leak penetrates your ceiling and does interior damage to your unit, you are responsible for that by obtaining a separate “interior” insurance policy, which is fairly inexpensive.  Flood insurance, if building is in a flood zone, is also covered in your maintenance fees.

Common Hallway Electric:  The lights provided in the hallway is ran off electricity provided by the homeowners association, and paid for in your monthly fees.

Property Management: This is the group that handles all the bill paying for the maintenance, common area cleaning, snow removal, etc.  If there is a problem in your unit, your property manager is the person to be alerted of any problems. 

Funds to build reserve account: Included in your monthly fees are reserves.  Reserves will build an account that will handle most expenses due to the “unknown” building maintenance, such as a new roof, sidewalk repair, etc..

Building amenities: If your building has amenities such as a gym, pool, etc, your costs are covered in your maintenance fees.

For more great information go to How to Get a Home Inspection.

Allow me to help you find the home of your dreams Contact Eddie Perez at (201) 344-2886, www.investhoboken.com.

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