When shopping for a condo, you may notice an additional line item on the real estate listing: a condo association fee. This fee may be relatively low or result in a little sticker shock! But what exactly is a condo association fee? And where does that money go? This guide will explain the ins and outs of condo fees, what questions you need to ask, and more.
What Are Condo Association Fees?
Condo association fees are monthly or sometimes annual fees charged by a building’s condo association and typically cover costs for public spaces, amenities, security, and maintenance. Condo association fees are very similar to HOA fees for condos.
Don’t you own your unit as a condo owner? Yes! However, condo fees go towards the building and community as a whole. For example, if the entire building’s roof needs to be replaced, that often comes from condo fees, which split the cost evenly amongst the owners.
Here are a few examples of things that condo association fees may cover:
- Property security
- Insurance
- Landscaping
- Trash and recycling removal
- Shared amenities like a pool or gym
- Certain utilities like water or sewer
- Outdoor maintenance, such as snow removal
- Maintenance for common areas like elevators, mailboxes, or parking garages
- Emergency or reserve fund for large projects like a roof replacement or repaving a parking lot
Your condo association fees contribute to projects and repairs that benefit the community, allowing owners to split the costs fairly. Keep reading to learn how fees are assessed.
Who is the condo association?
Much like homeowners associations, condo associations are made up of people from the community who make decisions about the community. Condo associations are typically elected, and participants must live in the community.
What Are Average Condo Association Fees?
According to Ruby Home Luxury Real Estate, the average condo association fee in the United States in 2024 was between $300 and $400 monthly. They also note that the range in the sample surveyed was between $50 and $1,000 per month. Condo association fees can vary widely depending on the size of the building or property, the specific amenities available, and more.
In some instances, condo fees are determined by the number and size of an owner’s units. In other words, someone who owns three units will pay more than someone who owns one 1,200 sqft unit. Likewise, someone who owns one 1,200 sqft apartment will pay more than someone who owns one 700 sqft studio apartment. Remember that every condo association will differ in how it determines fees; in some cases, it may be an equal split per unit owned.
Condo Association Questions to Ask Before Buying
If you’re considering purchasing a condo or even renting one, it’s important to know what condo association fees are, how they’re used, and what you’re responsible for. As a renter, you may be expected to cover the condo fee, or the owner may pay it. Like any other bill, you must pay your association fees in full and on time each month. Before buying or renting a condo, be sure to ask these questions.
How much are condo association fees?
Asking how much condo association fees are allows you to calculate them into your budget, much like any other bill. Find out how each condo association calculates its fees and decide if it is a fair and affordable situation for you. Remember that buying a condo or house comes with more fees than just the purchase price – from closing costs to the price of purchasing a living room set that fits in your new space!
When are condo fees due?
In some condo associations, fees are due monthly, and in others, they’re paid annually. Be sure to find out when they are due and what payment methods are accepted.
What is included in condo association fees?
When considering whether or not you’re willing to pay condo fees, find out what the associate fees cover. For example, if you don’t like to swim, and a community with a pool has higher fees, they may not be worthwhile. On the other hand, a community with low condo association fees may seem appealing, but if you’re responsible for hauling your trash to the dump every week, it may lose its draw.
Is the condo association mandatory?
Let’s say you’ve found your dream condo but feel the fees are too high or don’t benefit you. Can you opt out of a condo association? It depends on how it’s set up. Some condo associations may be “voluntary,” meaning that you can join if you want and enjoy benefits for joining, but you aren’t required to. This is pretty rare, though – most condo associations are “mandatory,” meaning you must join and pay fees if you purchase a unit in that community.
Big Condo Fees? Turn to CORT Furniture Outlet for Budget-Friendly Furnishings
Whether you’re seriously looking for your first condo, window-shopping online, or just finally stopped to wonder what happens to those monthly condo association checks, it’s important to understand where your money is going and what the association is using it for.
Thankfully, furnishing your condo is a more transparent process. With CORT Furniture Outlet’s deeply discounted, previously-leased furniture, you can be sure of what you’re getting: certified clean, high-quality furniture and decor. From bedroom furniture to rugs and home office setups, CORT Furniture Outlet has everything you need for your new condo. What’s more, some items are available for same-day pickup, making the process even more convenient. Visit your local CORT Furniture Outlet or shop online today.
