Expert: Jessica Bryan - 4/17/2010

Question
QUESTION: Hello:

What is the maintenance fee for a condominium for, what does it pay and what does it not pay.  I know that it generally does not pay for the electric bill for the condominium.

I thank you for your reply.

ANSWER: Dear Kenneth;
Each condominium complex has an association along with dues and/or maintenance fees that pay for the common areas...perhaps it is lighting, gardening, landscaping, painting, cleaning, upkeep; replacing furniture if there is a pool and for pool or gym equipment, etc.  Anything that is an amenity in the complex that is mutually owned and enjoyed is a shared expense.  When it breaks or requires repair that is paid for through the common fund collected via maintenance fees. What is not paid for is the individual interest. You have things you own inside the unit; painted walls, decor, appliances, etc.  and you are the individual owner.  You are responsible. In a condo your ownership is the air inside the walls of your unit and shared ownership of the building, the ground and the associated amenities.  

So, to recap:
Individual owners of condominium units share in ownership of common areas, such as corridors and recreation rooms indoors and courtyards outdoors. The association maintains those common areas and should keep them in good repair. There may be an on-site superintendent, or there may be a maintenance crew on call. They are also part of the fees paid by owners.  Your responsibility is to pay for your own space and to keep up insurance for that space.

I hope that helps answer your question.

Sincerely,
Jessica Bryan

---------- FOLLOW-UP ----------

QUESTION: Hello Jassica:

I want to thank you for your great reply. It was indeed helpful!

Am I correct to think that the maintenance fee will not pay for the insurance, taxes, water/sewage, gas, if required, and electric on the individual unit?

I thank you for your follow-up reply.

Answer
Hi Kenneth;
Yes.  You are correct.  These are the individual owner's responsibilities unless otherwise stated in your homeowner's agreement.  However, the Homeowner's Association will pay for the common area water, sewage, power, insurance, etc. as part of your fees since you all share in that expense as well.  One other thing that is probably worth noting: if the condo is not completely occupied, the fees are divided among a smaller group of residents and are therefore higher than when there is 100 percent occupancy.  Therefore, you will need to remember that the fees could be higher than are quoted.  Also, if someone doesn't pay their fees, there should be a reserve substantial enough to pay the fees and to pursue legal recourse against the occupant who is in default.

~Jessica Bryan