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SOOO frustrated. I never understood why so many people are advocates of raising condo fees. I have mentioned to them a zillion times that condo fees should not be raised because they determine the amount of money you get for your unit. But somehow they either don't care or refused to do anything about it.
There seems to be about 50% of the population that seems to expect the condo fees to be high. While I would like to reduce them. It isn't that I can't pay it... it just is that it makes the condo more competitive and unit prices higher. This isn't just for a sale but also for the amount of money your home is worth. (home equity etc)
Also, if there is one condo development in the area that has an outrageous condo fee, they will always want to match that condo... no matter what. It doesn't even matter what the budget looks like. We have a decent budget but they always want more.
Why?
Because the reserves are below requirements.
Because costs for the services the fees pay for go up (maintenance, electricity, etc.)
Because a major repair is anticipated.
Because the insurance required had a premium increase.
Why?
Because the reserves are below requirements.
Because costs for the services the fees pay for go up (maintenance, electricity, etc.)
Because a major repair is anticipated.
Because the insurance required had a premium increase.
You could ask the Board.
I am on the board. As I mentioned, the budget is in good shape. Reserves are solid. But they always want more reserves... no matter how stupid that is.
They have a sickness... ever year they want to repair something again that doesn't need repairing. Again and again and again... and, every time it is repaired they see non-existent problems.
I am on the board. As I mentioned, the budget is in good shape. Reserves are solid. But they always want more reserves... no matter how stupid that is.
They have a sickness... ever year they want to repair something again that doesn't need repairing. Again and again and again... and, every time it is repaired they see non-existent problems.
OK. I was just throwing out some possible reasons.
Would your colleagues be the type who equate higher cost equals higher class.
I know one of the two HOA boards I deal with had a history of not assessing high enough fees and letting nonpayers slide so the last few years they've been playing catchup in order to pay for deferred maintenance and to repair infrastructure damage authorized by a prior Board (they're looking at $150K in federal and state fines for that last one).
OK. I was just throwing out some possible reasons.
Would your colleagues be the type who equate higher cost equals higher class.
That is a possibility. I made a mistake -- I decided I didn't want to purchase a condo in my "can you afford it" range because I didn't want to be house poor. Unfortunately I didn't realize that if I bought a lower cost condo, I would be neighbors with "low cost people". They do seem to equate higher condo fee with higher value for units but unfortunately they can't see it is the exact opposite.
Our budget is amazing. We have zero people running late. We have a reserve = to our operating budget. Costs are going up but we had a reasonable raise $15 dollars - 2 years ago. I would be willing to have an increase in the condo fee every year keyed to inflation... so maybe 3% per year... but I am afraid to authorize that given that it seems people like to spend money and would likely do that PLUS have non scheduled raises.
Yet all they want to do is redo this or redo that when there is zero need for it.
We have redone our patios at least 3 times in the last 5 years. At at least 30K cost. And every time they get done someone says... "oh it is horrible" it needs to be redone. No one can really tell me what is wrong they just say things like the concrete is "poor quality".
I found out recently that the board paid changing a non conforming patio to a conforming one. NO way the condo should have paid for that.
IMHO it seems like keeping the fee low is hard.. raising it is easy.
Just because you are in a lower cost condo doesn’t mean the fees will necessarily go up. I lived in an area where people moved into my community because the fees were relatively low, and they worked hard to keep them low. They did go up slightly, but the exteriors really did need work (repainting, wood repair from wood destroying organisms, etc). It really depends on who is elected onto the board. If people want to keep fees low, they need to elect people who are focused on that as a goal. You aren’t necessarily neighbors with “low cost people” but have a board of people who want to raise fees. If you want to stop that, encourage people who are interested in having lower fees run in the next election. Period.
It really depends on who is elected onto the board. If people want to keep fees low, they need to elect people who are focused on that as a goal. You aren’t necessarily neighbors with “low cost people” but have a board of people who want to raise fees. If you want to stop that, encourage people who are interested in having lower fees run in the next election. Period.
The problem is that the residents do elect that. Then we get on the board and they change. Also there are a few loudmouth residents who constantly seem to suggest it. And, if suggested enough, people start to believe it is necessary. It is like some sort of illness that happens when people get on the board.
HOA fees should be in relationship to what you get. Some include little, some include quite a bit.
Reserves are not a guess nor relative to dues. They are determined by a Reserve Study that looks down the road at what will be needed when and having the money ready when needed. As an example, if roofs need replacement in 20 years at a cost of $500K then $2,500 per year should be set aside for this task. Also this should be revisited for inflation and actual cost changes.
HOA fees should be in relationship to what you get. Some include little, some include quite a bit.
Reserves are not a guess nor relative to dues. They are determined by a Reserve Study that looks down the road at what will be needed when and having the money ready when needed. As an example, if roofs need replacement in 20 years at a cost of $500K then $2,500 per year should be set aside for this task. Also this should be revisited for inflation and actual cost changes.
You're assuming that the Board will authorize the expenditure for the reserve study. The one I mentioned a bit ago is just now initiating their first one since the owners took over the Board, twenty three years ago. They had some really worthless officers for a long time. When I became the town liaison to them 12 years ago they had over $100K in outstanding dues on the books. That's now down to $12K.
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