Quote:
Originally Posted by Corndogger
Unless the condo board and/or management company breaks down how the fees are spent it's hard to do a comparison. Where I live we break everything down and the majority of the fees are used to pay for utilities, recycling, etc. Costs that any household would occur. It's the amount that goes into the reserve fund that is the best comparison to household maintenance along with operating costs for maintenance. Insurance costs would also be something worth comparing.
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If all was going directly to required maintenance, there should be modest difference between different buildings, but the issue with condo fees include but are not limited to the following:
- there are additional layers, IE you have to pay the management company
- often times issues of a particular unit are ignored or deferred till it is a broader issue, increasing the overall per unit cost
- many times what is required is deferred to a consultant that was recommended by the management company. There is often a good amount of conflict of interest w.r.t. what happens, when, and for what price
- as the board is volunteers, they sometimes get worn out while still wanting to maintain power and perceived status
- sometimes board members have specific angles that are hard to get around. I shared years ago that a building my folks were in had no furniture in the lobby because the many-term president's unit was directly above the lobby on the second floor, and she didn't want noise / people sitting there to talk
- when it comes to going after a builder / developer, it takes a lot of effort and cost, and often times condo boards strike too modest a deal with the builder on envelop issues
- when things happen involving specific units, the condo board often does not want to approach insurance as it will potentially increase rates for all of them, and so the want of the many over rule the rights of the few
- you lose control over when and how many renos happen IE special assessments that you have to pay within 30 days
- a change of circumstance might be against condo by-laws, like having a kid, getting a dog, or having a dog grow beyond a by-law weight limit, the need to have guests, etc.
So yeah - you can compare electricity bill to electricity bill and regular roofing to regular roofing, but it will not reveal the subtleties.
As Suburgatory has stated, there is risk in everything, and for some (many) the risks I've identified above relating to condo fees / boards are acceptable.