Condo fees are ridiculous

[Anonymous]

Insurance is super cheap on condos compared to townhouses

[Anonymous]

Spoiler: SFH maintenance and landscaping is expensive too

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Condo fees are an absolute scam. Most of it goes to unnecessary bloat and management company profits. Don't let anyone convince you otherwise.

Yeah, no. The balance sheet doesn't lie.

I mean this might be true in some condo buildings but if you are buying, you just request the budget records from the condo board and can see for yourself. In a well run building, the fees will cover necessary overhead plus a small overage to account for emergencies (sometimes in newer buildings there will have been a capital investment by the initial owners to build up a reserve), and that's it. If a condo fee is going to pay for massive management fees and unchecked expenses, don't buy in that building.

it's quite like that. the documents are useful, but whether "the building is well run" can change over time. i lived through several iterations of board and management and the differences (and our fee growth) were very significant.

[Anonymous]

Anonymous wrote:I have a lot of complaints about condo living but the condo fee isn't one of them. Before buying a condo, you should get copies of the condos last financials for at least the last few years. This will pretty instantly give you an idea of whether the fees are reasonable or not, plus will give you a good idea of whether the building issues a lot of special assessments and what their approach to maintenance is. There is zero reason to be surprised or confused about condo fees.

Actually, one of my complaints about owning a condo is how often other owners are totally clueless about the purpose of fees and want to do dumb things with the condo's money because they see the amount of money in the condo general fund and think it's time for a spending spree. Our building always has exactly one owner who wants to spend money on random projects that are not necessary and will not enhance the value of anyone's unit, because they have no concept of how money works.

I remember one condo board meeting where the owners of one unit were suggesting doing a 14k landscaping project to "beautify" a small strip of property that people used as a pass through to our parking area. When it was pointed out that not only would suck up our entire condo fund but would also create a maintenance need going forward that wasn't within the budget of our current fee structure, this person literally said "who cares, it's just money." They were young owners who likely had bought with a down payment provided by parents and I don't think understood the concept of ROI. Fortunately the majority of owners in the building have always gotten this and we've never had to acquiesce to the idiotic demands of the less practical owners, but fighting with them over stuff that honestly shouldn't even be a question is the worst part of owning a condo and the main reason I look forward to seeing ours in a couple years time.

But condo fees themselves are fine. Ours pay for things we'd otherwise have to pay for ourselves, and it's honestly much easier to just pay one set fee to the building once a month than to have to deal with things like water and bulk trash and landscapers individually.

ok, this is nothing. it's like a round error for big buildings. your condo fees are likely less than $500. condo fees can be in the thousands.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have a lot of complaints about condo living but the condo fee isn't one of them. Before buying a condo, you should get copies of the condos last financials for at least the last few years. This will pretty instantly give you an idea of whether the fees are reasonable or not, plus will give you a good idea of whether the building issues a lot of special assessments and what their approach to maintenance is. There is zero reason to be surprised or confused about condo fees.

Actually, one of my complaints about owning a condo is how often other owners are totally clueless about the purpose of fees and want to do dumb things with the condo's money because they see the amount of money in the condo general fund and think it's time for a spending spree. Our building always has exactly one owner who wants to spend money on random projects that are not necessary and will not enhance the value of anyone's unit, because they have no concept of how money works.

I remember one condo board meeting where the owners of one unit were suggesting doing a 14k landscaping project to "beautify" a small strip of property that people used as a pass through to our parking area. When it was pointed out that not only would suck up our entire condo fund but would also create a maintenance need going forward that wasn't within the budget of our current fee structure, this person literally said "who cares, it's just money." They were young owners who likely had bought with a down payment provided by parents and I don't think understood the concept of ROI. Fortunately the majority of owners in the building have always gotten this and we've never had to acquiesce to the idiotic demands of the less practical owners, but fighting with them over stuff that honestly shouldn't even be a question is the worst part of owning a condo and the main reason I look forward to seeing ours in a couple years time.

But condo fees themselves are fine. Ours pay for things we'd otherwise have to pay for ourselves, and it's honestly much easier to just pay one set fee to the building once a month than to have to deal with things like water and bulk trash and landscapers individually.

ok, this is nothing. it's like a round error for big buildings. your condo fees are likely less than $500. condo fees can be in the thousands.

That is often the case in larger buildings because the capital upkeep can be massive. When the main chiller unit went out on our high rise, it cost a million dollars to replace in part because we had to hire a crane to get the old unit from the top of our 20-story building and send up the new one. But my high fee also paid for the electric, water, and even the cable, plus the pool, lifeguards, desk clerks, security guard, building engineer, janitors landscaping, plowing, and everything else.

[Anonymous]

Anonymous wrote:Spoiler: SFH maintenance and landscaping is expensive too

Yep. Basic landscaping (mowing, hedging, weed work) on a 1/4 acre lot in Arlington is $250/mo.

[Anonymous]

Anonymous wrote:Depending on the county part of the fees have to go in a reserve fund that has to have thousands in it. They have to have enough to pay the management company, taxes to the county, roof repairs, insurance etc.

Just curious...which counties have this regulation?

[Anonymous]

Anonymous wrote:Spoiler: SFH maintenance and landscaping is expensive too

lol if you think that's even comparable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I have a lot of complaints about condo living but the condo fee isn't one of them. Before buying a condo, you should get copies of the condos last financials for at least the last few years. This will pretty instantly give you an idea of whether the fees are reasonable or not, plus will give you a good idea of whether the building issues a lot of special assessments and what their approach to maintenance is. There is zero reason to be surprised or confused about condo fees.

Actually, one of my complaints about owning a condo is how often other owners are totally clueless about the purpose of fees and want to do dumb things with the condo's money because they see the amount of money in the condo general fund and think it's time for a spending spree. Our building always has exactly one owner who wants to spend money on random projects that are not necessary and will not enhance the value of anyone's unit, because they have no concept of how money works.

I remember one condo board meeting where the owners of one unit were suggesting doing a 14k landscaping project to "beautify" a small strip of property that people used as a pass through to our parking area. When it was pointed out that not only would suck up our entire condo fund but would also create a maintenance need going forward that wasn't within the budget of our current fee structure, this person literally said "who cares, it's just money." They were young owners who likely had bought with a down payment provided by parents and I don't think understood the concept of ROI. Fortunately the majority of owners in the building have always gotten this and we've never had to acquiesce to the idiotic demands of the less practical owners, but fighting with them over stuff that honestly shouldn't even be a question is the worst part of owning a condo and the main reason I look forward to seeing ours in a couple years time.

But condo fees themselves are fine. Ours pay for things we'd otherwise have to pay for ourselves, and it's honestly much easier to just pay one set fee to the building once a month than to have to deal with things like water and bulk trash and landscapers individually.

ok, this is nothing. it's like a round error for big buildings. your condo fees are likely less than $500. condo fees can be in the thousands.

Right, but I live in a small building with low fees. That's the whole point -- small building, few amenities, reasonable fees that go to cover things you'd have to pay for yourself in a townhouse, like water, landscaping, trash. This is why OP's statement that condo fess are "ridiculous" is incorrect. It depends on the building and how it is managed.

Btw, 14k is nothing for a large building with hundreds of units, but for our small, 6-unit building, it's enough to undertake major projects. We were able to do a major repair to an exterior staircase for just 8k because the building was small and we had a good relationship with the company that did the repair (they are our usual contractor and numerous owners have used them for interior renovations, so they gave us a very fair rate in order to maintain that relationship, which has been lucrative for them).

Yes, a large building can have repairs in the millions. Though even with that, if you have 200 owners, that cost is spread across all units and may not be as onerous. The main reason I prefer small buildings is that they tend to have owner-run boards rather than outsourcing to management companies, which you really have to watch to prevent them from nickel and diming you over everything. I also don't want to pay for front desk staff, elevators, pools, or gyms, all of which can push your fees up very high.

But it's a choice. No one is required to buy a condo in a large building with high fees.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Spoiler: SFH maintenance and landscaping is expensive too

lol if you think that's even comparable.

It absolutely can be. It depends on how much maintenance is required.

No one is making buy a condo. If you think the fees are ridiculous, then don't. It winds up being a good deal for a lot of people which is why they remain a popular option.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Depending on the county part of the fees have to go in a reserve fund that has to have thousands in it. They have to have enough to pay the management company, taxes to the county, roof repairs, insurance etc.

Just curious...which counties have this regulation?

I’m the PP. we’re in an HOA in moco. Required to have a reserve fund.

[Anonymous]

Insurance generally is over 50-60% of the fees.

Snow removal costs also.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have a lot of complaints about condo living but the condo fee isn't one of them. Before buying a condo, you should get copies of the condos last financials for at least the last few years. This will pretty instantly give you an idea of whether the fees are reasonable or not, plus will give you a good idea of whether the building issues a lot of special assessments and what their approach to maintenance is. There is zero reason to be surprised or confused about condo fees.

Actually, one of my complaints about owning a condo is how often other owners are totally clueless about the purpose of fees and want to do dumb things with the condo's money because they see the amount of money in the condo general fund and think it's time for a spending spree. Our building always has exactly one owner who wants to spend money on random projects that are not necessary and will not enhance the value of anyone's unit, because they have no concept of how money works.

I remember one condo board meeting where the owners of one unit were suggesting doing a 14k landscaping project to "beautify" a small strip of property that people used as a pass through to our parking area. When it was pointed out that not only would suck up our entire condo fund but would also create a maintenance need going forward that wasn't within the budget of our current fee structure, this person literally said "who cares, it's just money." They were young owners who likely had bought with a down payment provided by parents and I don't think understood the concept of ROI. Fortunately the majority of owners in the building have always gotten this and we've never had to acquiesce to the idiotic demands of the less practical owners, but fighting with them over stuff that honestly shouldn't even be a question is the worst part of owning a condo and the main reason I look forward to seeing ours in a couple years time.

But condo fees themselves are fine. Ours pay for things we'd otherwise have to pay for ourselves, and it's honestly much easier to just pay one set fee to the building once a month than to have to deal with things like water and bulk trash and landscapers individually.

ok, this is nothing. it's like a round error for big buildings. your condo fees are likely less than $500. condo fees can be in the thousands.

Right, but I live in a small building with low fees. That's the whole point -- small building, few amenities, reasonable fees that go to cover things you'd have to pay for yourself in a townhouse, like water, landscaping, trash. This is why OP's statement that condo fess are "ridiculous" is incorrect. It depends on the building and how it is managed.

Btw, 14k is nothing for a large building with hundreds of units, but for our small, 6-unit building, it's enough to undertake major projects. We were able to do a major repair to an exterior staircase for just 8k because the building was small and we had a good relationship with the company that did the repair (they are our usual contractor and numerous owners have used them for interior renovations, so they gave us a very fair rate in order to maintain that relationship, which has been lucrative for them).

Yes, a large building can have repairs in the millions. Though even with that, if you have 200 owners, that cost is spread across all units and may not be as onerous. The main reason I prefer small buildings is that they tend to have owner-run boards rather than outsourcing to management companies, which you really have to watch to prevent them from nickel and diming you over everything. I also don't want to pay for front desk staff, elevators, pools, or gyms, all of which can push your fees up very high.

But it's a choice. No one is required to buy a condo in a large building with high fees.

she clearly wasn't referring to that type of building.

[Anonymous]

Anonymous wrote:Insurance generally is over 50-60% of the fees.

Snow removal costs also.

Nope. In our mid rise condo it was the elevator

[Anonymous]

Our fees include water, landscaping, roofing, and brickwork. I imagine that 'fee' would be considerable for a sfh (if you averaged monthly). And when there is a problem I submit a ticket. Vs having to arrange a service. Some places are crazy with fees but assuming also condo fees are a waste is also crazy.