Are you considering buying a condo?
For many, the benefits of owning a condo, such as low maintenance costs and a location convenient to you and your family, outways the negatives of being part of a condominium association.
For some people, being a part of a condo association sounds great. However, owning a condo association also has its downsides, so you should carefully consider all the pros and cons before purchasing.
Keep reading for the pros and cons of being part of a condo association.
What is a Condominium Association?
A condominium association consists of a collective of individuals who own condos within a given condominium development. Its main objective is to manage the affairs of the development and the common areas within it.
The association is led by a Board of Directors or Membership Organizations and operates through bylaws, regulations, and public meetings. The association may also form committees to handle creative solutions for problems or tasks.
The Pros of a Condominium Association
The pros of a condominium association are numerous. We have listed below some of these benefits such as:
Access to Shared Amenities
A condo association gives its members access to shared amenities that can be used for fun and social activities. Most condos have access to shared amenities like:
- Other shared areas
Increases the Overall Property Value
A well-run organization can attract potential buyers who want to live in a more organized and structured community. The common areas look better, and keeping them nice can pay off by making the units sell for more than units in the same area that don’t have a condominium association.
Provides a Collective Voice for Condo Owners
A condominium association gives owners a way to make decisions and set rules as a group. This ensures that all owners have a say in important decisions and makes it easier to talk to the governing body.
This makes sure that all owners are kept up-to-date on changes and improvements.
Responsible for the Upkeep of the Building and Grounds
A condominium association is legally responsible for maintaining the building and grounds, ensuring that everything is taken care of. This also generally means that there are rules and regulations to ensure the property is kept in good condition.
Protects Individual Owners From Their Neighbors
A condominium association is a great way to protect individual owners from their neighbors. It can take action against owners who do not follow the association’s rules or violate the condominium agreement.
This can help ensure neighbors are not taking advantage of one another or causing disruption to the community.
The Cons of a Condominium Association
The cons of a condominium association can create a less than enjoyable living experience. A condominium association can enforce tedious restrictions such as:
High Cost of condominium Association Dues
Living in a condominium comes with costly association dues almost always required. Paying these dues can be a burden to some, and they can increase over time with no promise of services or amenities.
Privacy of Residents is Generally Compromised
With an association, it can be hard to keep some personal things from the public. The association has the full power to make decisions about the space, including setting rules and enforcing noise level regulations.
This can make it hard to keep private activities, like loud parties, a secret.
Possibility of Abuse of Power
There is always a chance that the board and officers of the association will abuse their power. A group runs condominiums called the Board of Directors, with the final say on policy, rules, and other decisions.
Even though the board members usually do a good job of running the association and take their jobs seriously, there is still a chance that they will abuse their power or show favoritism, which could hurt the residents.
Missed Monthly Payments Becomes Costly
If you miss a payment, the association may impose fines or interest on the debt, which can become costly. In some cases, payment delinquency can even lead to legal action, such as a lawsuit from the association.
Homeowners Association vs. Condominium Association: The Difference
The main difference between homeowners associations (HOAs) and condominium associations (COAs) is that HOAs cover an entire residential development of single-family homes. At the same time, COAs only deal with multifamily homes.
Both types of associations have many pros and cons for their members. On the plus side, a condominium association usually takes care of the grounds and shared areas of the homes.
They may also have amenities like pools, fitness centers, and playgrounds that people like. On the other hand, being a member of a COA means that you have to follow strict rules, and if you don’t, you could get fines or other punishments.
Also, members of COAs may have to pay expensive membership fees and annual dues. Ultimately, both homeowners and condo associations have pros and cons.
The more info you know, the more you will be wise in deciding which is best for you.
Demystifying the Truth About Your Condominium Association
A condominium association has the potential to provide many benefits, but careful consideration should be taken before joining. Before weighing the pros and cons of a condominium association, it is important to research and understand the association’s responsibilities.
Make sure you know the expectations and limitations to decide if joining a condominium association is the right decision for you.
Check out our other blog posts to learn more about condominium associations and other real estate topics.