If you are in the market for a condominium in Boston, your projected housing budget isn’t done until you have factored in condo association fees alongside your mortgage, insurance, and property taxes. Whether you’re a first-time buyer in Beantown, or if you just need a refresher, it helps to take the time to understand what these fees are and what to expect.
What Is a Condo Association?
A condo association is essentially a homeowner’s association for a condominium building. Each condo owner has the rights of ownership over the inside of their private home, but the condo building is more than just the insides of the individual homes. There are hallways, elevators, shared roofs and walls, shared plumbing and electrical infrastructure, exterior lawns, sometimes amenities like pools, business centers, and fitness rooms.
When decisions need to be made about these shared spaces and structures, they can’t fall to an individual owner. They must be decided on by all the residents. Condo associations provide a framework for decisions to be made. They may call meetings, hold votes, and solicit feedback. There is usually a leadership structure made up of condo owners within the building and voted on by the owner-members.
They may subcontract some decision making to professionals (ie.property management firms) but that is another decision that must be voted on collectively by the ownership roster.
And, of course, nearly every condo association charges each owner a fee for the privilege of owning a home in the building.
What Are Condo Association Fees Used For?
Condo association fees are used for repair and maintenance of shared spaces and structures. For example, a roof that covers multiple units can’t be the responsibility of only one of the unit owners — it affects all residents. The burden of repairing it must be shared collectively.
Repairs and maintenance that get funded by condo association dues might include:
- Shared roofs
- Shared walls
- Hallways or breezeways
- Controlled-access building entry points
- Parking lots
- Elevators
- Exterior landscaping
- Amenities like pools, business centers, or fitness rooms
- Shared electrical and plumbing infrastructure
- Heating and cooling systems
- Shared sewer and wastewater removal
- Building-wide pest control
- Building-wide trash removal
How Much Are Condo Association Fees in Boston?
There’s no one-size-fits-all answer to the question “How much will I pay for condo association fees in Boston?” However, condo fees do fall into some general ranges in the Hub of the Universe:
- Typical for a two-bedroom unit in a mid-sized building — $450-$600/month
- City-wide median as of late 2024 — $414/month
- Self-managed small buildings — can be as low as $200/month
- Luxury Buildings — upwards of $1,000/month and beyond
What Affects Condo Association Fees in Boston?
Many factors affect how much you will owe the association as a condo owner. For example:
Newer, larger buildings may have many amenities — pool, fitness center, etc. — that requires maintenance, putting upward pressure on the dues.
On the other hand, newer buildings often require less maintenance, as they have had less time to endure wear and tear, potentially providing some condo fee relief.
Larger buildings also benefit from economies of scale. With more member units feeding dues into the coffer, associations can cover costs and build an emergency fund without charging each member an arm and a leg.
Prestige plays a role too — if a building or neighborhood is particularly elite or attractive, condo associations may charge a “prestige” premium to their owners.
Historical status is a factor too. Boston has many historical buildings that require meticulous maintenance by law, which can add more upward pressure to an already hefty maintenance burden due to the age of the building.
Watch Out for Special Assessments
Condo association fees may look like a stable monthly payment, but watch out for special assessments. These are mandatory “surprise bills” that a condo association can levy on its members in the event of a major expense — for example, a tree falls on a shared roof, a major pipe bursts in a freeze, or the fitness center catches fire.
Well-run condo associations usually have a reserve fund, setting aside a portion of each monthly dues collection to save money for such emergencies. This is meant to avoid the need for a special assessment. However, if the fund is too small (or non-existent), special assessments can and do happen. When considering your home, it is very wise to do some due diligence on the condo association and its solvency.
FAQ
1. How Much Are Condo Association Fees in Boston?
There’s no one-size-fits-all answer to the question “How much will I pay for condo association fees in Boston?” However, condo fees do fall into some general ranges in the Hub of the Universe:
- Typical for a two-bedroom unit in a mid-sized building — $450-$600/month
- City-wide median as of late 2024 — $414/month
- Self-managed small buildings — can be as low as $200/month
- Luxury Buildings — upwards of $1,000/month and beyond
2. Do Condo Association Fees Change?
Yes, condo association fees can and do change over time. Reports reveal an average trend of 2% annual increases in condo association dues — something to factor into your long-term budget.
3. What Happens if a Resident Doesn’t Pay Condo Association Fees?
Failing to pay condo association fees can have serious consequences. Condo associations retain the right to assess late fees and penalties for missed payments. If enough payments are missed, condo associations can place a lien on the delinquent unit — meaning they can foreclose on it! Yes, homeowners who don’t pay their condo dues are in danger of losing their home, even if they are current on their mortgage and property taxes.
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