A condominium or better known as condo is a type of housing residence where a specified part of real estate, such as an apartment, is owned individually while common parts of the whole property, such as grounds, amenities, facilities and building structures are owned equally by the unit owners.
All real estate needs regular maintenance and certainly, condominium buildings are not an exemption. Once a condominium unit is acquired, it is imperative to pay monthly dues also known as Home Owners Association (HOA) fees or Association of Apartment owners (AOAO) fees.
One of the reasons why buyers are reluctant to acquire a condo unit is because of the maintenance fees. They see this as a monthly burden and an extra worry. For many, the idea of maintenance fee has been one of the most misunderstood and misinterpreted part of condo living.
All condominium communities in fort lauderdale or in Pompano Beach may vary widely but in general the fees paid every month to each condominium cover basically the same things from one place to another. On the whole, the condominium or maintenance fee covers the administrative and property management, amenity management, professional fees, security issues, common area electricity and water, supplies for repairs, pest control, real property tax, insurance and liabilities. Furthermore, buyers should be aware that the maintenance fees are not constant. They can and will eventually increase or decrease over time though it tends more to increase.
Depending on what type of condominium building you live on, the maintenance fee will vary but generally it will start around $200.00 dollars per month and up. Buyers need to know this from the beginning in order to precisely determine their buying power. By and large, the maintenance fees are calculated by taking the total of operating budget, and then adding it with the factor to finance the reserve funds that the home owner”s association believes they should be funding and dividing that amount by the interest of ownership in the common elements of each unit. That yearly sum total is then ideally collected in monthly payments although it could also be collected quarterly or annually depending on the preference of the association. The reserve fund is very important because this serves as an emergency fund in case of major repairs and a perfect financial support for building upgrades.
These fees may seem high at first look but when you begin to consider and calculate the total cost of all these items for a single home, these numbers prove to be reasonable. This proves also as an advantage for unit owners since all they have to do is to pay the dues and the administration would take care of the specific payments.
In the final analysis, condominiums are for convenience and pleasures and condo maintenance fees are there not to squeeze money from your pocket but to protect your investment. Think twice before dismissing a potential condo unit ownership and logically analyze the possible expenses whether you could practically save more or not. You might be pleasantly surprised with the result on what you can get more out of your money when you choose to live in a condominium.