Maintenance Fees Negotiable?
After looking at condos and co-ops for a while now, I have been deterred by some because of their insane maintenance fees. I was just wondering if these fees are ever negotiable? Thanks!
After looking at condos and co-ops for a while now, I have been deterred by some because of their insane maintenance fees. I was just wondering if these fees are ever negotiable?
Thanks!
There is an exception — a new condo. The sponsor may “pay” your fees for some period of time with a purchase. These deals were done for many new coops back in the 80s. However, I woudl not be looking for that kind of incentive….
They are of course negotiable in the sense that you can try to persuade the board to reduce them somehow (e.g., lower any contributions to a reserve fund, change management comapnies, etc.). But I doubt that means negotiable in the sense of negotiating at the type of purchase before you even become a shareholder (or whatever it is called for condos).
I think you can ask for a copy of the buildings financials if you think the fees are too high. You can’t change them but you can at least see if the building is having some financial trouble or what they’re spending the maint on.
…and just to add to NSS, for some condos there are tax abatements that expire on a certain date. Once that happens, the monthly costs can go up significantly. You should look into that.
FYI – This is also why it is important to look at overall carrying costs of an apartment in your buying considerations and not just price.
For example, I remember seeing one huge 2 BR apartment that was asking only $540K a couple of years ago. The catch – Maintenance and Taxes were $1,400. When compared to another similar 2BR priced at $615K with only $450 maintenance, the $615K place was the much better deal.
Agreed. The maintenance is set by the board and goes to the necessary immediate and ongoing costs of the building. If anyone tells you otherwise, don’t believe them.
No, Never – They are set by the board and go towards operating the building- eveyione in the building must pay. The only negotiable element is sometimes you can get the sponsor to pay them for a year or something like that.