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We live in a 15 unit condo building that's in a surplus Government building. (it was a school) We don't use a property management company as owners we control upkeep and maintain the property ourselves. The condo board has a President, Treasurer/Secretary, Vice President and two Trustees. I like this arrangement as we can control expenses better. Plus if we have to make a difficult decision we can discuss it and work just the five of us and then present it to the condo owners for a vote. I've only been here 2 years and we have so far been able to work together well.
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Originally Posted by Mightyqueen801
That's pretty good. With a condo that small, I can see how it could work out well without a property management company.
We have 122 units. Our property management company has been with us for years. We did ask for proposals from two others last time their contract was up, but they were still the best deal, and they know the property and are familiar with the history.
I think it can go both ways. I had friends who owned in a small, self-managed building and personality conflicts between some of the owners ended up making for a terrible situation although fortunately, it was a desirable enough area that they were able to get rid of their unit and extricate themselves from the mess. (Part financial, part people not doing their share of the actual work)
Personally I've steered clear of any self-managed complexes after that, and no regrets about it.
The OP asked about the differences between a condo and a private home. Typically a condo refers to a high rise building with neighbors above, below, and beside you. Well it is not a black and white as that.
I live in a 112, patio home, HOA. When I say patio home, they are 1200 to 1500 sqft on a small lot. 10 to 20 feet between (sides) of homes. 25 feet in front of the home to the street. 25 feet or so from back of the home to a 6ft privacy fence. Homes back up to woods, a pond, and a few backup to each other but separated by a hill and a wide open grassy area.
The HOA maintains all landscaping and does all exterior home shell maintenance. I do not own a rake, shovel, etc. We have no amenities (pool, tennis, etc.) thus keeping our cost low. We are a dead end neighborhood with public streets. Our HOA dues are $840.00 per year.
I haved lived in NYC Coops (leased). I have owned/lived in an 8 story condo building ($600 per month dues), a townhouse located on a golf course which the HOA owned ($800 per month dues), an HOA with large, private homes and amenities glore ($700 per year dues), and now my small patio home ($840 per year dues)
The point of my post is there are many hybrid styles of living between a private home and a condo. Consider all.
The OP asked about the differences between a condo and a private home. Typically a condo refers to a high rise building with neighbors above, below, and beside you. Well it is not a black and white as that.
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No, it isn't. Condominium is a type of ownership, not a type of building. I live in a one-story condo unit with no one above or below me. There are two-story units attached on either side of me. Eight units in my building. 122 units in the entire complex.
That's not even a thing..... to worry about. When you buy you already benefit from the reserves the previous owners have paid into. Not only that but you can get an assessment added if there is not enough in the reserves to be paid monthly, and if you go to sell that gets passed on to the new owner. I had a friend who had a condo and an expensive repair was needed so it added $400 extra month for a few years, then after that you better cross your fingers.
and good luck with other people spending your HOA money or them getting kick backs for passing along the job to a friend.
It is a 'thing' - when you consider the concern so many have with what they perceive as "overly high HOA fees" -- because they failed to consider 'reserves' when calculating what is covered in HOA fees.
The notion of "other people spending 'your' HOA money and then getting kick-backs," speaks to a lack of first-hand experience or familiarity with HOA spending limits and requirements for ownership votes on significant expenditures. There are also limits on the movement of funds within and outside of reserve accounts -- and ownership voting requirements on assessments.
At least in Florida, none of this is done in a vacuum, without active owner involvement. (However, in many years of direct experience, I've seen MANY owners who choose to remain totally un-involved until they suddenly find something they don't like (and typically fail to understand that other involved owners have had meetings and votes to ratify various actions). Ironically, these are the people who bought into the condo and agreed to abide by the condo docs and rules, but, never paid attention to the details or believed the rules applied to them.
No, it isn't. Condominium is a type of ownership, not a type of building. I live in a one-story condo unit with no one above or below me. There are two-story units attached on either side of me. Eight units in my building. 122 units in the entire complex.
You are correct in that "condo" is more a type ownership than a style of building but when the word condo is used, most think high rise. The way you describe your unit, I would refer to it as a townhouse meaning units side by side sharing a common side wall unless an end unit.
Typically an HOA has two types of money. Operating Budget which is spent on day to day expenses.
The second is Reserve Fund which is money set aside to replace/repair items as they age such as roofs pool liners, driveways, etc. How much Reserve Capital should be determined by a Reserve Study and then funded as needed. As an example: It will cost $50K to replace our roof and our roof has a 20 year life expectancy so one would need to be putting $2,500 per year aside for replacing the roof.
Reserve Funding should not be used for "enhancements" but for replacing/repairing. Enhancements need to be funded from a Capital Improvement Fund. As an example. Remodeling/refreshing a club house should come from Reserve Funding. Adding a new room to the clubhouse should come from Capital Improvement Funds. Not all associations will have this fund. An association can borrow from its Reserve Fund for other uses but we wary if they do not have a solid, pay it back plan.
One reason many associations get in trouble is they did not fund the Reserve Fund and come time for say a new roof, they do not have the money. Now comes Special Assessment time to get the money.
Moving into an association? Always ask the Reserve Study and the Reserve Fund. You do not want to be hit by a Special Assessment surprise.
Condos are built to specs that are different than apartments, so I recommend making sure they are not conversions from apts. to condos. Otherwise, costs are spread in all different directions. For example, my condo is taxed much less than the SFH' in my area since homes in my area sell for about 450k on average now. Our condos are still much less and appraised lower too.
Can any of the Condo owners on this thread comment on how much their property management company charges them?
Pricey downtown Boulder Colorado. Condo is 1/6th of a large Victorian-style home. My unit is under 1000 sq ft.
HOA Fee: just under $300/month.
We meet about once a quarter to discuss/vote on what improvements need done and the priorities. Common use charges come out of the fee like landscaping, snow removal, two small dumpsters.
Can any of the Condo owners on this thread comment on how much their property management company charges them?
The actual numbers are outdated because I no longer live there, but to give some sense. A few years ago, my association had an annual budget of about $200,000 for 120 units (some were townhouses, some were a more traditional condo in low rise buildings). The management fee was about $15,000 annually.
For comparison, annual insurance premiums were about 32K and snow removal was 35K but the year I could find a budget for was a high snow year, it was budgeted for 20K, so still more than the management fee
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