This is the second post in a 6 part series to help those that have ever wanted to own a condo but didn't know where to begin, understand what it means to own a condo.
This post will address the questions about association dues and what all they include.
Now that we know what you own, you know what you would be purchasing when considering condo ownership. This lays the foundation for understanding that not owning the building or the land means that condo ownership comes with the responsibility of paying monthly association dues. These monthly dues go to cover the cost of owning, insuring and maintaining all of the common elements. The common elements like the building(s), may the land and any amenities that the development has for the owners and their guests to use; think a pool or a hot tub. The association dues also typically include many of the utilities. It is not uncommon for the dues to cover water, sewer, trash pick-up service, cable television, and high-speed cable internet as well for each condo owner in addition to everything required to manage, maintain and insure the common elements.
Another good question to ask here is; are the association dues going up, going down or remaining the same throughout the years?
In order to understand and be willing to accept the answer to this questions as OK you'll need to think about your own home... when is the last time that the water company told you that they were going to charge less per gallon you consume? Or, when was the last time that the gas company said that they would charge less? The electric company charging less per KWH? And better yet, when was the last time that your home insurance company said that your annual insurance premiums over the last 5 years have overall decreased? The answer to any of these is likely that your costs don't typically go down and instead, there is a nominal increase annually. It's the same when you own a condo. The dues include each of these types of expenses and typically they don't go down unless there is some major change to the common elements such as changes pool or hot tub heaters from electric to gas, the sale of some unused land the association owns, find a major leak and having it repaired, etc. So, while the association dues do not typically decrease, it's easy to understand why.
There are ways to cover the cost of association dues and this will be discussed in post 4.
Broker/Owner Perdido Key Resort Realty
GM Perdido Key Resort Management
JD is the Broker/Owner of Perdido Key Resort Realty which proudly serves all property owners in and around the Greater Perdido Key and SW Pensacola areas. If you have questions about buying, selling or general questions about the market then you should speak with JD at your soonest convenience. If that isn't enough... JD Hallam also currently is a Board Member as the Perdido Key Lodging Representative for the Escambia County Tourism and Destination Marketing Organization, VisitPensacola, and is the organization's FY18 Marketing Chairman after having been the Treasurer for FY17.