Do Common Charges for Condos Increase Every Year?

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In this tutorial video, we'll go over the commonly asked question of whether co-op or condo apartment common charges go up every year.

Also know as HoA fees, HoA dues, condo association maintenance fees, or co-op maintenance fees, these monthly running charges are levied by the HoA (homeowners association) and are mandatory just like your mortgage payment is mandatory.

The consequences of not paying you HoA fees can be serious, such as your HoA initiating a common charge lien or even a foreclosure proceeding against you.

This is why it's so important to carefully read the building documents before you get locked into a purchase because a poorly managed condo or co-op apartment can lead to constantly rising common charges year after year.

With that said, it's normal to expect some level of common charge increases every year simply due to inflation, after all it's not like your board can control the impact of inflation on their operating expenses.

However, watch out for condo or co-op boards that increase common charges dramatically every year, much more than the rate of inflation. This can be the sign of a very poorly run condo or co-op, or even signs of corruption and kickbacks that the board members may be secretly benefiting from.

Pro Tip: Also watch out for conflicts of interest in the condo docs such as with the developer, a separate commercial unit owner or a hotel lot owner. Sometimes, condo docs are written in such a way as to really favor the non-residential owner.

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Hauseit Group LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
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