There are many people that enjoy the communal atmosphere that comes with owning a condominium. It's important however, to be clear on what your condominium dues covers. While coverage will vary from one community to the next, the following are a few things that are usually covered by most.

Insurance. As with any home purchase, this is a necessary investment and is well worth the cost. Insurance will cover major repairs to the facility, whether man-made or due to an act of God. It will also cover a personal injury suffered by an individual when said injury occurs on the property.

Rates vary from state to state and are also affected by location. Dwellings located within a specified distance from coastal areas incur higher premiums due to the potential for natural occurrences, such as hurricanes and floods. Check with a local insurance agency to see if your condo is within those limits.

Your monthly dues also covers external maintenance of the condominium structure and property including lawn care and maintenance, snow removal during the winter months, and external building care such as painting and other general maintenance.

Internal maintenance is covered and incorporates upkeep of all common areas including painting, garbage removal, pest control and general cleaning. If your facility is equipped with a pool, work out center, sauna etc. these areas would also be covered.

Some utilities may be incorporated into the dues as well, including water usage fees and garbage removal. This is a nice addition, as it takes some of the guess work out of monthly budgeting. But, be aware that as these costs increase over time the additional expense will be added to your dues.

Some condominiums are equipped with pools, saunas and workout facilities. Your monthly dues gives you the added benefit of enjoying these amenities at your own leisure.

Some condominium communities, place a part of your dues into a reserve fund. This fund is created for the purpose of financing long term capital improvements to the facility, such as major repairs or replacement of roofs, septic systems and plumbing work. If your condominium doesn't have such a fund, and a major improvement is necessary, the cost of the improvement will be incorporated into your monthly dues at that time.

Your dues also covers the salaries of the condominium management staff and maintenance personnel. It is placed in a separate fund referred to as a operating fund and the money is taken out as needed.

Your monthly condominium dues will, no doubt, increase on a yearly or bi-yearly basis to cover any increased costs of the above mentioned benefits, but be aware that if your condominium community doesn't currently have some of the amenities mentioned, they may decide to add them. If this is the case then all condominium owners incur the cost of these additions which will be reflected in your dues.

Learn more about this author, Trudi Buck.
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