All Forum Posts by: Dominic Jacquot

@Dominic Jacquot It really depends on how well managed the condo is.  I've seen cases where the association dues cover all capital expenditures for a property, plus a reserve for emergencies.  On the other end of a fence I've seen condos with fees that barely cover the common area expenses and do not save anything at all for larger expenses.  Those condos do special assessments when there are repairs, new paint, or roofing to be done.

Try to find out which management style this condo uses, then you can budget accordingly.  Personally, I would never buy into a condo that doesn't take in enough revenue to pay for all capital costs with the standard dues.  It shows a lack of management or lack of willingness of other owners to pay for necessary repairs.

Aloha,

You are responsible for certain elements, your Association is responsible for others. Only your Declaration can identify exactly what you are responsible for, and therefor what elements you need to plan for their capex. The condo fees theoretically would cover the Association elements for repair and capex, however there is no guarantee of that. You need to get an understanding of the Association Annual Budget and, in particular, the Reserve Funding Plan. This plan should clearly identify all of the capex, and should also reveal what the actual level of current funding is for those items. It is not uncommon to find monthly fees have been intentionally kept at a low level, while Reserves are not properly funded to enable the major repair or replacement when due, without an "unexpected" Special Assessment.

I always recommend you check for a local chapter of the Community Association Institute. They will have resources that will clearly explain the Budget and reserve funding process, and all other aspects of Association operations and how they are supposed to be run.