Answering All Condo Residents' Questions Is the Condominium Maintenance Fee Worth Paying?
25 มี.ค. 2024
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The condominium maintenance fee, or condo common fee, is an expense well familiar to all condo residents, paid monthly in a fixed amount by condo owners. The amount varies between projects due to various factors influencing maintenance and management costs within each of them, such as amenities offered, the ages and conditions of the condos, among many others.
For those wondering why their condo common fee is higher than others and if it's worth paying every month, in this article, Plus Property will delve into what the condo common fee is, why it’s significant, and generally, what it includes. Without further ado, let’s jump right in!
Is the Condo Common Fee Worth Paying?
If one ever questions if the monthly common fee is really worth it, various factors need to be put into consideration. However, if the question is whether one can “not” pay the common fee, the answer is a definite "no." Failure to pay may result in penalties, accumulating interests, and even legal actions.
Now, let's go back to the question as to if it’s really worth it. It's essential to understand who collects the fee, who pays it, and who benefits from it.
Who Collects the Condo Common Fee?
The condo common fees are collected from the residents within the projects. These fees cover expenses related to the management and maintenance of the projects’ common areas, as well as various amenities. Generally, these fees are specified for payment either annually or monthly, and often in advance for at least a year.
Certainly, the funds collected from these common fees are used to cover various expenses associated with providing conveniences for residents and maintaining the projects. In general, these common fees are collected and managed by:
- Condominium Juristic Person (CJP): The CJP is responsible for managing the common properties of the project. It is a legal entity with multiple stakeholders and typically has the responsibility of preparing budgets, planning financial plans, and making decisions on fund allocation to benefit residents in the project;
- Property Management Company: In some projects, a property management company is hired to oversee various operations and maintain buildings. They handle tasks, such as coordinating repairs, addressing residents' concerns, and ensuring that common areas are utilized efficiently. These companies often have specialized expertise and experience in comprehensively managing and addressing various issues.
What Do Residents Get from Paying Condo Common Fees?
Many residents may wonder, "Why do I have to pay such a big amount of money every year?" Plus Property would like to respond to this by stating the reasons why paying condo common fees is not just a financial obligation but also an investment in the quality of living, maintenance, and overall well-being.
- Maintenance of Common Areas: Condo common fees are utilized for the maintenance and repair of common areas within the projects. This includes cleaning, landscaping, lighting, elevator maintenance, building painting, structural repairs, and many more;
- General Public Utilities: Condo common fees cover general public utility expenses for common areas, such as electricity for lighting and water for maintaining gardens and trees;
- Facilities: Condo common fees cover expenses related to the maintenance and service of facilities like swimming pools, fitness centers, clubhouses, and other recreational spaces;
- Insurance and Security: Condo common fees often include insurance coverages for common areas, which includes liability protection, property damage coverage, and security services or systems for residents and properties within the project;
- Condo Reserve Fund: A portion of condo common fees is typically allocated to a reserve fund, intended to cover unexpected expenses, repairs, and replacements in the future;
- Increased Property Value: When projects are consistently well-maintained and well-managed, it will help sustain and increase their value in the long run, indirectly benefiting the projects themselves.
What Would Happen If You Don't Pay the Condo Common Fee?
As mentioned earlier, if you don’t pay the condo common fee, several negative consequences may arise. This includes penalties, accumulating interests, and even legal actions to collect the outstanding fees, leading to long-term consequences, especially if you plan to sell the property in the future.
Plus Property hopes that every question has been addressed, to whatever extent it may be. So, for those concerned about whether the money spent on the condo common fee every year is worth what they receive or not, you may already have gotten a clearer picture.
And, for those interested in details about condominiums, you can follow and read good articles from Plus+. We promise to bring more good articles to share with you again.
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