Can anybody tell me why HOA and condo fees are so high (2014, rent)

[robert1522]

in delaware? In New Jersey, high taxes yes but condo fees generally just cover CAM charges, snow removal and landscaping and seem to be much lower then delaware. There must be a good reason for it.

Bob

[Mary2014]

Bob,

I just moved into a DE condo. In my particular condo community the HOA also includes trash collection. Many of these communities with higher HOA's also have pools and clubhouses.

As far as the separate condo fees, DE requires each condo community to maintain sufficient funds to handle capital expenses such as replacing a roof, the siding, maintaining roads if the are privately owned etc.. So, for example if a roof typically has a 20 year life, each year a portion of that expected cost has to go into a reserve fund so the money is available when the roof does have to be replaced.

It minimizes the risk of a huge special assessment in the future. The DE law went into effect in 2009 and I think it minimizes the risk of financial problems in the future. It forces the condo association to plan for the capital expenses of maintaining the community.

Mary2014

[nuts2uiam]

I am not sure the size of the properties in NJ but there are townhomes and condos here that are enormous and the size of the units are also a factor in the fees. The structure of fees varies with some offering outside coverage too.
One community we looked at, would repair everything from a roof shingle to siding on the outside of your home. In order to accurately answer this you would need the specs of both to compare them, but generally it is what the coverage includes and as a separate function what the reserve fund is.

[jwkde]

Most of the HOA's in Delaware are responsible for their own snow removal (with some reimbursement from DelDot after the expense is paid out. A bad winter like the past one can really hit the HOA's bank accounts pretty hard. That could be one of the reasons

[TeddyP27]

Our complex have both condos and townhouses. The Condo HOA is higher due to the shared maintenance funds set aside and the townhouses simply pay for landscaping/snow removal. We're on the hook for our own rubbish/recycling.

[EnjoyEveryDay]

We recently moved into a condo in a development that has both HOA fees (to cover the pool, hot tub, fitness room, common areas, snow removal) and condo fees (lawn maintenance including sprinkler system, shrubs/trees, roof, exterior siding, painting, trash removal, etc.).

Keep in mind that when you get near the beach, some folks use these condos for summer visits or even rent them out. They need services such as the above to keep the properties in good condition when they do not live there year round.

We visited lots of areas with little or no fees that of course offered fewer (or none) of these amenities. If you look around and compare sure that you will find what works best for you. Good luck!

[robert1522]

you one and all.

Bob

[SandyJet]

condo arrears and flood and homeowners insurance are large costs

[rdlr]

Originally Posted by robert1522

in delaware? In New Jersey, high taxes yes but condo fees generally just cover CAM charges, snow removal and landscaping and seem to be much lower then delaware. There must be a good reason for it.
Bob

A simple answer - from a lifelong Delawarean.

They charge, because they can. They know they can get the high fees, because newcomers are anxious to move here. Newcomers love the low taxes, so they are willing to pay other fees to be here. Some of the high homeowners association fees are laughable, but newcomers are willing to pay, and as long as the caravans keep coming, the fees will gradually increase.

[travric]

Curious as to the range of HOA fees. Question is what's reasonable? 100 mo? 200 mo? 300 mo?