Ever wonder how the monthly charges are determined on condos and co-ops?

How Monthly Fees Are Calculated in Co-ops and Condos

Wednesday, March 27, 2013, by Jeremiah Budin

Curbed University delivers insider tips and non-boring advice on how to buy, sell, or rent a home or apartment. Additional questions welcomed to tips@curbed.com. Today's topic: monthly fees!
Today's Curbed U lesson is short and sweet. Those pesky monthly fees that you're always having to pay. How are they calculated? This is how:
Condos: Common charges in a condo are calculated by taking each unit owner's percentage of common interests and multiplying it by the total operating costs of the building. Percentage of common interests is figured based mostly on the total amount of space that an apartment occupies, but also on other factors, such as its location within the building. A penthouse, therefore, would generally have higher common charges per square foot than a second-floor pad. The total operating costs of the building include things like heat, hot water, electricity in common areas such hallways and the lobby, building staff, and amenities such as pools, gyms, concierge, etc. Subtracted from that total is any income received by the building from things like laundry rooms.

Read Full Story Here: http://ny.curbed.com/archives/2013/03/27/how_monthly_fees_are_calculated_in_coops_and_condos.php

Much More Than Just ‘Maintenance’

Much More Than Just "Maintenance'

By JIM RENDON

Published: January 12, 2012

 

In New York, the cost of a co-op or condo can seem an impossible hurdle. But alongside the asking price is another figure that can induce sticker shock: the monthly maintenance fee — or, as it’s called in condos, the common charge.

The fee can range from a few hundred dollars a month, for a small condo, to many thousands for an exclusive co-op. And as millions of owners have discovered, it almost never goes down and rarely stays flat. Often, the increases happen yearly.
Potential buyers should be concerned about the fee, not only because it is real money paid out of pocket every month, but because it has a direct impact on property value.

“The market rewards low maintenance and punishes high maintenance,” said Roberta Axelrod, the director of residential sales and rentals for the real estate firm Time Equities, who sits on 10 co-op boards. Apartments with low monthly charges tend to sell for more, and those with higher fees for less. That is not to say that buildings are doing away with amenities. In fact, new condo projects tend to be full of perks like exercise rooms, screening rooms, children’s play areas and even indoor pools. Yet all of these things add expense.

Read the full story here: http://www.nytimes.com/2012/01/15/realestate/getting-started-much-more-than-just-maintenance.html?pagewanted=1&_r=1&ref=realestate