Monthly condo fees are calculated by creating a budget for the condo
association. The amount each unit has to contribute to the budget is
determined by multiplying the amount of the budget by the percent
interest that the unit has in the association (usually found on the
unit deed), then divide the result by 12 to get condo fee due each
month.
The condo association budget is made up of all the costs associated with
running the condo association and the property. This could include master
insurance, water & sewer charges, common electric, landscaping,
snow removal, cleaning of the common areas, payment to a property
management company, etc. What is included is really determined by the
type of building, numbers of units, and by the trustees of the condo
association. Smaller condo association buildings such as 2-4 family conversions may
not budget any funds for landscaping, cleaning or management,
preferring to save money and take care of those items themselves. In
larger complexes there may also be costs associated with fire systems,
elevators, swimming pool maintenance, etc. There is also a portion of
the condo association budget that is given towards the reserves of the association. The
condo reserves cover any high cost, long term maintenance items such as
painting, roof replacement, re-pointing a brick exterior, etc., and
also to cover any unexpected repairs/costs.
When you place an
offer on a condo there are some things that you should request
from the listing agent or condo trustee. These are copies of the Master
Deed, Declaration of Trust, Rules & Regulations, Budget, and the
minutes from the most recent condo association meeting.
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