Financial: Understanding Condo Fees

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Condo Fees are small monthly fees which help maintain the property outside of the condo unit. This can include lawn care, snow removal, general building upkeep. They can range anywhere from $50 to $500 a month depending on what is included. Condo complexes with more amenities will tend to have higher condo fees.

Additionally condo fees should include insurance for common areas, buildings and liability insurance. Most HOAs purchase an insurance policy that protects the community’s common property. In the case of a condominium or townhouse community, the policy typically protects the grounds and external building structures. The policy does not protect the interior of a resident’s home, nor does it protect residents’ personal property. In a subdivision, the HOA’s policy protects only the grounds and any common buildings that all homeowners share. The policy doesn’t protect a resident’s home or its contents. [source]

When evaluating condo complexes, consider what common amenities you really want and which would not be used. If you don’t play tennis and don’t expect to ever play tennis, don’t pay a higher condo fee to support a shared tennis court if your not ever going to use it.

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