Small vs. Large Buildings and Condo Associations
Smaller associations tend to have lower assessments. This is great for the cash strapped buyer. However, the buyer beware! If the association is not putting enough money away to adequately pay for regular expenses and even worse, the occasional problem, there is a high probability the building will see a special assessment. A special assessment may be levied against a unit for many items. A common one is having to put on a new roof. This can be quite costly. If the unit owner does not pay the assessment a lien can be placed on unit. The lein will prohibit the owner from selling or refinancing the unit. There is something to be said for strength in numbers.
With a larger association the buyer will run into higher monthly assessments. This can be a good thing or a bad thing. In a full amenity building the assessments can run to $1,500 per month or even higher. This is especially true in older and vintage buildings that require relatively more maintenance than newer buildings. With larger buildings, the association will be run by a management company. Depending on the management company, their fees can add quite a bit to the monthly assessment. But, if you want a well run building you have to be willing to pay for it. If the building is not well run, you at risk of your asset (home) depreciating.
