Association Fees/Dues

[PBJ]

Ok, so it's been asked here previously, but not since all the "developers" have found us. So i'll pose the question again. What the heck drives a $300/month (or around there) association fee I see at most of the "downtown" condos? We were talking about it here at lunch today, and I can't come up with a good reasoning behind it. If you have 50 units in a building, that's $180,000 a year in dues. Even 25 or 12 units, it seems rediculously high. For what? Up keep of the pool or weight facility? Snow removal from the sidewalk? Cutting a 2' strip of grass between the sidewalk and curb? I'm sure I'm missing something, and i'd like to be clued in.

I ask this because you can sprawl out to the country, live in a prebuild "suburb" with the same type of amenities for between 50-250/year in assocaition fees.

Looking to be enlightened

[terra firma]

Ok, so it's been asked here previously, but not since all the "developers" have found us.  So i'll pose the question again.  What the heck drives a $300/month (or around there) association fee I see at most of the "downtown" condos?  We were talking about it here at lunch today, and I can't come up with a good reasoning behind it.  If you have 50 units in a building, that's $180,000 a year in dues.  Even 25 or 12 units, it seems rediculously high.  For what?  Up keep of the pool or weight facility?  Snow removal from the sidewalk?  Cutting a 2' strip of grass between the sidewalk and curb?  I'm sure I'm missing something, and i'd like to be clued in.

I ask this because you can sprawl out to the country, live in a prebuild "suburb" with the same type of amenities for between 50-250/year in assocaition fees.

Looking to be enlightened

<{POST_SNAPBACK}>

Property taxes $2.00 / per square foot per year

Insurance maybe $0.20 / foot

Maintenance $.50

common area electric $.50

common area gas / heat $.40

Elevator service contract

roof upkeep

lawn / weeds / plants

snowplowing

maybe a reserve account for capital improvements...

It really depends on the facility, how much greenspace / parking there is etc.

Most downtown office buildings are maybe $3.50 - $6.00 per square foot per year, clearly the number is higher for a densely populated residential facility.

Even at $5.00 per foot per year, x 1500 sq ft apartment = $625 per month so your $300 number looks like a pretty good deal to me !

Probably the Landlord's you reference have baked some of the above expenses into the gross rent number.... My example is more closely related to office buldings in the downtown area.

The apartment experts tell me that for my new project I should figure on $3500 per unit per year in operating costs. That would be $300 / per month and is consistent with the inquiry you posed.

[twoshort]

Property taxes $2.00 / per square foot per year

<{POST_SNAPBACK}>

You mean just for the common areas, correct? You have to pay prop. taxes for your own condo seperately, right?

[terra firma]

You mean just for the common areas, correct?  You have to pay prop. taxes for your own condo seperately, right?

<{POST_SNAPBACK}>

No, figure roughly $2.00 per foot per year for each square foot of building space, whether it's owned by the resident or the 'complex' or whatever.

For instance, at 44 Grandville our prop taxes (since this one is right in front of me..) = $1.76 per sq ft. for the calendar year 2004. This is for both common space and leased space.

Our tenants re-imburse us as part of the normal billing cycle on top of the rent.

With conod's it's diferent, the owner of a unit gets a prop. tax bill and ALSO an association bill for the cocmmon area component. The common area part would be low, since many people pay as a team for a relatively small amount of space..

[PBJ]

No, figure roughly $2.00 per foot per year for each square foot of building space, whether it's owned by the resident or the 'complex' or whatever.

For instance,  at 44 Grandville our prop taxes (since this one is right in front of  me..) = $1.76 per sq ft.  for the calendar year 2004.  This is for both common space and leased space. 

Our tenants re-imburse us as part of the normal billing cycle on top of the rent.

With conod's it's diferent, the owner of a unit gets a prop. tax bill and ALSO an association bill for the cocmmon area component.  The common area part would be low, since many people pay as a team for a relatively small amount of space..

<{POST_SNAPBACK}>

Ahhh, so if i read that right. I buy a condo, but the Tax isn't figured into the mortgage/purchase, b/c it's handled by the building owner, who I then pay at a monthly rate. That makes more sense.

[svs650k3]

It will also differ based on property and ammenities. Plaza Towers have a doorman, 24hr security etc. that some other places don't. They're association dues are hovering around 500/mo.