The more amenities the building offers, the higher your HOA fees will be. A pool requires cleaning and maintenance, a sun deck needs flowers and the wood deck sealed, an exercise facility requires safe and modern equipment. Twenty-four hour doorstaff is expensive. All buildings, however, have to be well maintained, and that includes regular tuckpointing, attractive lobbies, and safe elevators. A portion of the monthly HOA fee is put aside for future repairs, and another portion is used for current operating expenses. Pre-war buildings provide steam or hot water heat to the units, and the heat is included in the HOA. However, owners in newer condos that have heat and air condition provided by the building, pay for the electric to run the fan that distributes the air and heat. Other condos have electric heat, paid by the condo owner based on their personal usage.
What are HOA fees and what do HOA fees include?
Posted by Linda Shaughnessy on Sunday, March 8th, 2020 at 2:46pm.
The term HOA or Homeowner’s Associate Fee, refers to the monthly fee an owner pays for the use of a condo building's common amenities, including the exercise room, the pool and sun deck, the services of the building's staff, a professional property management company, if the building has one, water (in Chicago), and, in most cases, the building’s common insurance
However, there is so much variability among condo buildings and townhome communities, it s recommended that you become familiar with the various HOA fee structures before you begin your property search. Ask your realtor, what is and isn’t included, so you can accurately determine whether or not a property is within your budget.
Types of HOA Association Fees
Townhome HOA Fees
Towhomes may be owned “fee simple” meaning you own and maintain the exterior of the townhome as well as the land. The HOA fees, therefore, are lower.
Other townhome communities are condominiums, and, like units in a high rise, the owner owns the interior, and pays dues to the association to maintain the common areas. And, while you may feel like you own your own home, the exterior will have to conform to the homeowner’s association rules, including the color you paint your front door.
Even when you know if a townhome is fee simple or a condominium, ask before a showing if the homeowner is responsible for roof repairs, windows, and tuck pointing. You will confirm all this information during the attorney approval process when you read the bylaws and declaration, but knowing up-front will help you to better evaluate the property based on possible future expenses.
Condo HOA fees
Ownership of a condo is often referred to as “walls-in,” because the building itself and its common areas are jointly held by all of the owners while actual ownership is limited to the individual unit. You will, therefore, be required by your lender to have homeowner’s insurance for the condo’s interior, and your monthly HOA fee will include a payment toward the building’s common insurance. In Chicago, water is included also.
The more amenities the building offers, the higher your HOA fees will be. A pool requires cleaning and maintenance, a sun deck needs flowers and the wood deck sealed, an exercise facility requires safe and modern equipment. Twenty-four hour doorstaff is expensive. All buildings, however, have to be well maintained, and that includes regular tuckpointing, attractive lobbies, and safe elevators. A portion of the monthly HOA fee is put aside for future repairs, and another portion is used for current operating expenses.
Pre-war buildings provide steam or hot water heat to the units, and the heat is included in the HOA. However, owners in newer condos that have heat and air condition provided by the building, pay for the electric to run the fan that distributes the air and heat. Other condos have electric heat, paid by the condo owner based on their personal usage.
Parking Fees
Condo Buildings with Onsite Parking Garages
Older condo buildings built roughly between the 1960s and 1990s have onsite parking garages and you lease the space. The advantage of a leased parking garage is that guest parking is also available. The leased monthly parking expense is not included in the condo HOA fees so be sure to ask your agent what they are and if there is a range. Some condo buildings have outdoor spaces at a lower fee, self-park options at higher rates, and then, the most common, valet parking fees.
Deeded Parking
Condos in newer buildings have deeded parking spaces. You cannot lease a garage space in these buildings, there is no garage attendant, and there is no guest parking. The garages were built to only accommodate the condo owners’ cars. You drive into the garage and park in your private space. These spaces were offered at the initial sale of the building, so the first purchaser of the condo you may be considering purchased one, two, and, possibly more spaces if the condo was exceptionally large. Each deeded space is considered a form of real estate and has its own PIN number – Property Identification Number and, therefore, an annual tax bill. There is also a small monthly fee to maintain the garage. These fees vary, so add that to your list of questions.
If you do not own a car or, if the condo is offered with two spaces, your agent will likely stress the resale value of owning the condo with the deeded space or spaces. You can often lease the space to another owner in the building, but not to outside residents.
Condo prices may or may not include the price of the deeded parking space, and, therefore, the HOA fees may or may not include the deeded parking monthly fees. As this information is listed in the MLS, your agent can quickly tell you what the deeded parking fee is and if it is included or will be in addition to the HOA association fee.
Jameson Sotheby’s International Realty
55 E Erie Street 1C
Chicago, IL 60611