A condominium is defined in Black's Law Dictionary as "Ownership in common with others. A single real estate unit in a multi-unit development in which a person has both separate ownership of a unit and a common interest, along with the development's other owners, in the common areas." By using this definition, one can see, generally, what condominium dues cover-the common areas.

Condominium dues are more often referred to as Home Owner's Association Dues. These dues are the costs associated with running the community and all its amenities or services. A property management company is hired by the Home Owner's Association to "manage" the community-this ranges from collecting the dues to hiring contractors to dispersing funds for the community. Below is a list of the top five (5) association costs that are budgeted as part of the condominium dues:

1) Landscaping. The property management company may have their own landscaping crew or they contract out for it.

2) Building maintenance. The building maintenance is usually defined as anything that is beyond any given individuals unit interior walls. Think in terms of how you are responsible for "the paint in" on your unit and the Home Owner's Association/property management company maintains outside that, excluding the other units. The property management company may have staff contractors or they contract out for the service.

3) Pool and Spa. A pool and spa servicing company is hired to clean and maintain the community's pool and spa.

4) Utilities. Water, gas, electric, and sometimes cable; all have to be factored into the running of the association. Sometimes water and cable costs, for all the units in the complex, are included as a part the association dues (for condominiums this is generally true, but for town-homes, it can go either way). These costs are filtered through the property management company.

5) Insurance. This is generally Hazard Insurance for the building itself. This, in almost all cases, does not cover personal property for any individual unit. In a town-home setting, it may even be more limited. It is a good idea to verify before hand what type of insurance is covered for your unit. In addition, Insurance is one of the top reasons for increases in dues over time.

The costs above are by no means the only services association/condominium dues can cover. In higher end communities, these services can include valet service, concierge service, drivers, gourmet food catering, dry cleaning, full time security, etc. These dues in higher end communities range anywhere from $500 per month to $2,000 or more depending on the city and its location in the city.

Just keep in mind, the board you vote for to run your Home Owner's Association can directly affect the amount of dues you will pay in the years to come. If there is mismanagement of the funds, you lose. If they hire an expensive property management company that does not repair things, or even keep the grounds properly maintained, this affects your property value and the amount of dues you ultimately pay.

You do have a say in how your dues are managed and what they can cover-this is mainly in how you vote. Why? Because, if you don't have time to be actively involved in all the board meetings, whomever is voted President, Secretary and Treasurer of the Home Owner's Association, directly affects the budgeting of the dues. Know your rights as an owner, and exercise them.

Learn more about this author, L.J. Pugh.
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