Let me explain a little about these fees. You need to consider what they included before you freak out at the amount. The main thing you want to check for is: Does it include your home owners insurance? That’s a big one. Some times you pay on your own, some times its included in the HOA and paid by them, some times you are given an assessment at the beginning or end of each year to come up with the whole amount at once, and some come as an assessment spread out in extra payments throughtout the year or quarterly.
Next see if it comes with lawn maintenance: Some maintain all of it, or parts of it. Most times residential they just maintain common areas and you are responsible for your own yard. I have seen some cut the front and sides and you are responsible for the back yard. Condos usually maintain all of it. 55 plus communities could go either way. So for example in a 55 plus community that includes it, you need to back out of the HOA fees how much it would cost you to maintain that yard or pay somebody to do it.
Just to have an HOA costs money for you to be represented and for legal fees and accounting. This usually isn’t a huge amount. For those neighborhoods that just have that and common grounds involved with no amenities, its usually about 25 a month.
These neighborhoods usually are more desirable as far as upkeep goes, which helps keep your property values from dropping.
If you have amenities, these things require upkeep, such as pools, hot tubs, tennis courts, and others. You do want the pool to have the proper cleaning and chemical combinations.
Some have Clubhouse facilities for community or private use.
Think about Trash pick up, if its included. That’s about $45 quarterly you would pay to have trash pick up.
If they allow pets or not, there is usually some clean up there.
When talking about condos, they might include, one or more utilities. Some include basic cable, internet, electric, phone, security systems, water and sewer, etc.
If you have a security gated community, that costs money to maintain.
So for example. You have Condo on the Golf Course:
HOA fee is 350
HOA Fee Includes:
Electric Common – Street lights and Hallways, etc.
Water and Sewer – This would be about 30 a month
Trash Pickup – would be about $15 a month
Pool Service – Clean pool
Landscape/Lawn – Common Areas
Insurance – This one includes Home Owners Ins. About $100 or more
Manager – Manager on site.
Legal and Accounting – for HoA
Master Antenna/Cable TV – Basic Cable. Approx. $50 a month
Common Maint/Repair – to building our outside areas that may need repaired. Usually includes roofs and sometimes balconies and outside doors.
Internet Access – Approx another $50 if you don’t’ want something compared to dial up.
So $80 dollars left to pay for electric common areas, maintenance on building, landscaping, and equipment. The pool service, restrooms at the pool, lawn chairs and umbrellas, manager, and legal and accounting. Now it doesn’t seem so bad.
If you have an elevator in the building, Surely you want to keep that serviced too.
Some have gyms, or beach van service, etc. Just take into consideration what the HOA includes, back out how much it would cost you, and then see if it is worth it to you.
If you are buying a condo Oceanfront and it includes Home Owners Insurance value that at about. $150-$200 a month.
Most condos are going to require that you have H06 insurance. Everybody in the building must have it. What does it cover??
The best “rule of thumb” for condos is; everybody pays for their own damage. If a toilet on the third floor leaks and does damage to the units below, everyone must pay for their own damage. The person on the third floor is not responsible for the units below.
Your HO6 policy would pay for any improvements that you have personally made to the condo. If the building burnt down and you have replaced old counter tops with new granite, it would cover the improvements also.
H06 is not expensive. Usually on average about $200 for a year.
Generally if I have clients looking for Oceanfront Condos and I find some with HOA fees under 500 a month that includes Home Owners Ins. I consider that a deal. If they don’t include it, I try to find the ones around 350 a month. There are not many, but they are there.