Pay it with a Smile

Perhaps the most common complaint heard in condominium association meetings is about the condominium fee. Even when it is very low, such as $200.00 or less, people get upset when it goes up. After all, no one wants to pay more for anything, a condo, a car, a divorce. Everyone wants to pay less. A cousin to this argument runs along this sentiment, “If I didn't live in a condominium, it would be a lot cheaper.” That's simply not true, but I understand why Owners make such comments.

It's psychologically hard to pay a bill when you don't know why you are paying what you are paying. When someone writes a check for their electric bill, they can see what it costs for the electricity. When someone writes a check to the cable company, they can see what movies they rented, what the base connection fee is, and what premium channels they have and at what cost. Not so with condominium fees, where someone writes a check each month for $350.00 and has no real idea for what they are paying. It's no wonder owners get frustrated. So one of the best things a Board can do is explain where their condominium fee is going.

For instance, the association has an insurance policy that covers things such as leaks, lightening damage, wind damage, and the Units are covered if the building is destroyed by fire. At one association, for example, that part of the monthly condominium fee is about $25.00 per month, or $300.00 per year. You will likely pay two to three times that figure for insurance on a $350.00.00 home. If you have a $350,000.00 $350,000.00 home, you might well pay close to $1,500.00 to insure the home on an annual basis.

When the budget is broken down at one association, it costs about $25.00 per month per unit for snow removal. That includes plowing the driveway, shoveling the walkways, salting, sanding and roof raking. You might be able to get someone to plow your driveway for that amount of money, but I've yet to see someone be able to get someone to plow, roof rake, salt and sand for that price when hiring someone at a single-family home.

Landscaping is another cost. For another example, it costs one association about $25.00 of their monthly condominium fee for lawn mowing, fertilizing, seeding and mulching, or about $300.00 per year. It will cost much more than that for a $350,000.00 home with a finely landscaped yard.

And if the window sill rots and needs to be replaced or if the deck railing falls apart, it costs about $15.00 per month in the condominium fee to have a maintenance person on call to come take care of the problems versus several hundred dollars of labor to take care of the problem, plus materials, plus the markup on materials to hire a contractor.

Clearly, a single family home owner can do many of these things and save a lot of money. But condominiums sell quality of life, where for a comparatively small fee, the owner doesn't have to find the regular time to mow the lawn, fix the door, and get bundled up and brave the winter weather to shovel in the dark in the teeth of the frigid wind.

And let's not forget about legal fees. For the same association, it costs about $10.00 a month for legal fees. Essentially, this means having an attorney on call to help address issues such as what to do when there is an insurance claim, what to do about the neighbor who parks in your space, what to do about the dog tied up outside and barking at odd hours, and more.

Like many things in life, it's all about better communication. So boards should, perhaps, do a better job of explaining how the budget is broken down and what each item actually costs. By and large, you will be surprised at the savings, and increased quality of life, that paying a condominium fee brings. So when the next winter storm hits and you are safely and warmly inside or it's a sweltering summer day and you see the landscaper spreading mulch and mowing the lawn, take out your checkbook and pay the monthly fee with a contented smile. Maybe even pay it a little early as a thanks for all your Board has done to help you save money.