Every time a condo seeker finds a great unit in a prime location for a reasonable price, the maintenance costs give them pause – and while this debate rages on- someone else buys the property.
The biggest hassle of condo living is frequently viewed as the maintenance fees. Condo buyers, however, should take into account what is covered by these fees and the costs associated with each of these items separately, such as paying for insurance, maintaining the parking garage, lockers, gym, roof, and security, as well as paying for electricity, gas, water, and cable (often included in some fees). It’s not just that you don’t have to mow the grass or shovel the snow thanks to maintenance payments, you escape the hassles associated with handling overhead and maintenance expenses.
The number of units and building footprint are just a couple of the factors that determine a building’s maintenance fees. Buildings with a lot of units typically get the benefits of economies of scale. In comparison to smaller buildings with fewer amenities, larger buildings with more amenities may have lower maintenance costs.
After all, a concierge service split among 50 apartments will be far more expensive than one split among 500 units. However, the likelihood of wear and tear increases with the number of units and common areas/amenities a building has. The value of the condo is directly impacted by the efficient administration of the building and reserve fund (funds set aside for significant repairs, upgrades, renovations, catastrophe management, etc.).
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