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Some Points to Consider in the Quest for a Condo
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Sometimes unexpected and extraordinary problems arise -- a broken gas line, for example, or sewage pipe. These require significant money beyond what has been budgeted. Such expenses are often covered by special assessments, which will be determined by the condo association board of directors. The special assessment might range from $500 to $5,000.
Ask when the last assessment was made and whether any assessments are planned. Boards often discuss them well in advance. Ask about the nature of the assessment and the amount the board has discussed. This will clue you in to any major problems with the property that may not otherwise be apparent, especially if the paint is still fresh.
Ongoing or planned assessments could amount to substantial hidden costs. You may not wish to buy where you are going to be hit for a $5,000 assessment shortly after closing.
On the plus side, special assessments usually indicate that improvements are being made on the property, which can increase the property's value.
Consider also that condo assessments are shared expenses and are often far less than what the owner of a single-family house must pay for an equivalent upgrade. Ask how the assessments are made -- in one lump sum, in installments or as an amount added for a fixed period of time to the condo fees.
And remember to compare the condo fees with those of other associations and what those fees cover.
· Maintenance issues . There's nothing quite like losing water, power, heat or air conditioning, or for that matter being snowed into the parking lot on a winter day.
Ask how the condo association handles maintenance. Having resident maintenance staff on the property increases the likelihood of quick repairs. It also ensures that maintenance workers will likely have a deeper understanding of the problems that may occur.
Other questions to ask about maintenance: Are background checks conducted on maintenance workers? Are they bonded? How long have they been employed by the condo association? What is the turnover rate among the staff?
· Social and security issues . Ask about the ratio of tenant-owners to renters. The lower the proportion of renters, the better. Resident-owners typically take better care of their property and are likely to be more actively involved in its management.
