I know we already discussed HOAs. But holy shit fuck, why do all the condos want like 500/mo for a HOA fee? Am I getting a steak dinner and a beej every night with that?
As a Board President....there's:
Management company fees
Insurance
County required inspections = cost to certify and maintain elevators, all firefighting, etc
Repair, repairs, and repairs
reserve fund based on an engineering company's study
More repairs
Gotta pay for that study
Gotta also pay to file taxes
Gotta then pay for your yearly audit
Retainer for your legal counsel
Cost for any legal cost above retainer
Amenities: such as pool contract, gym equipment, community room, sports facilities, etc
Landscaping. Fuck the cost of landscaping
snow removal. Fuck the cost of shoveling snow
24 hour attendant? Thats 200k a year.
Security? Salaries. Just cameras? Need to pay for that too.
Elevators need to have a phone line. 6 elevators and thats 6 phone lines you are paying for.
Pay for the alarm monitoring service as well.
Utilities. Electricity minimum for common areas. Water for common and often for whole building. Gas maybe.
Basic consumables. Paper towels. Soap. Light bulbs.
Shit breaks. More repairs
Janitorial contracts. Preventive maintenance contracts.
Exterior parking? Lines and curb need yearly painting
Garage? Fuck even worse.
If you are in a city look use this simple equation. 50 cent per square feet.
The cost is not just managing the day to day ops of the condo. It's there to maintain at the very least your value. You can sure slack and not repair shit and reduce the quality of what your building offers. But you lose it when you sell. Period. People bitch when they get a 2000 dollar assessment to repair 200 doors, 600 windows, roof repairs and redo the entirety of the roads and paint. But that 2000 either made your place go up by 5k or regained the 5k you would have otherwise been in the hole house value wise. When you go sell you dont want to walk up seeing a shitty parking lot, lights out, and dead trees. You dont want them to walk in a lobby that smells like old people, carpet that is torn up, and paint chipping off the wall. Curb appeal still matters with a condo.
TLDR - all this shit costs money.