Association Dues What You Need To KnowSeptember 11, 2017
Many first time buyers are not aware that condominium ownership also comes with a monthly association due that they need to settle on a monthly basis aside from their utilities such as water, electricity, cable, internet, etc. However, on the other hand, a lot of condominium owners are not sure what is included in the dues that they pay and what happens if they forget to settle it. We are here to help you answer all your inquiries.
WHAT ARE ASSOCIATION DUES?
It is a monthly payment made by unit owners and or tenants to contribute to the operation and expenses of keeping the condominium operational. You as a condominium owner or renter is automatically a member of the homeowners living in the building. You are considered a member once the unit is turned over to you, or once you signed the deed of absolute sale or once you signed the rental agreement with the owner or once the title is transferred to you. In short, everyone living in the condominium is a member and is obliged to pay association dues.
WHERE TO PAY?
The collection is made by the property management office. It may be a different company from the developer, but they are the ones responsible for maintaining and developing the building. There may be different modes of payment—cash, credit card, cheque …. That depends on the company that handles your condominium. Terms may also differ. You may need to check on this prior to deciding on moving or buying a condominium.
WHAT ARE THE INCLUSIONS?
Inclusions are the services and amenities that come with owning a condominium unit. The fees include the services you get such as the Security, maintenance, janitorial, parking attendants, sanitation, clubhouse and common facilities. It also includes building maintenance such as minor repairs, repainting, and landscaping and pest control. It also includes community fees such as taxes, licenses, employee wages, and utility expenses (which covers water and electricity for the building NOT per unit). Can you now see where your fees go? Don’t worry, you also get to enjoy the other fees you pay like the up keeping and maintenance of the building furniture (lobby and waiting area, etc.), the pool, the spa, the gym, the playground, the game room and other common areas in your building. See, it’s not at all fees, fees, and more fees. There is also good stuff you get to enjoy.
HOW MUCH DOES IT COST?
That depends. Why? Because the cost depends on different factors. First off, the building operating expense is calculated. The location of the condominium is considered such as in what city it is at and on what floor your unit is in. The size of the unit you bought or renting is also a factor to consider. Because the amount is computed per square meter. The best part of the computation, the amenities, and facilities your condominium offers also dictates on the amount homeowners need to share and pay for.
WHAT WILL HAPPEN IF I FORGET TO PAY?
You will surely be missed. Kidding aside, penalties do come with being forgetful especially in paying your dues. Late payment may range from 4% to 5% depending on which developer. Once you remember you forgot to pay, make sure to settle your dues A-S-A-P! WHY? Once you get to be a delinquent payer, you will definitely feel the effect. The property management office may cut-off your utilities as well as prohibit you from using shared/common areas and amenities. Who would want these to happen? Definitely not any of us!!
WHEN SHOULD PAYMENT BE MADE?
Association dues are paid and should be paid on a monthly basis. You pay for it even if no one is occupying your unit or if you are out of town or out of the country. However, if you feel rich and if you have extra money, you may pay a lump sum. Just make sure to inform the property office of the modes of payment you prefer. For some developers, you may enjoy discounts if you pay annually or advance.
Definitely, owning a condominium does not come cheap. You are still obliged to pay fees on a monthly basis. Indeed, condominium living comes with the commitment to pay and be part of the homeowners association. Thus, giving you a better experience in living, and enjoying amenities a regular home does not offer.
I hope this enlightens you on why you pay for association dues and where your payment goes. We would love to answer your other inquiries and concerns. Send us an email and our friendly staff will answer them for you.