The difference between condo association and homeowners association management is real and important. You will want to consider all differences and their pros and cons before choosing which to use.
The Difference Between Condo Association and Homeowners Association
The easiest way to differentiate the two is by considering the common areas of each. In condo association management, each condo owner owns both their unit and jointly owns a piece of the common areas. Thus, condominium association fees go toward both individual unit and common area upkeep. In homeowner’s association, each homeowner owns their lot and property and are responsible for the maintenance of that on their own. Their homeowners association fees are solely paid for upkeep of common areas.
Fees for condominium association management typically include the following:
Exterior surface of the unit
Sidewalks / Balconies/ Patios
Common areas including lobbies, hallways, and entryways
Homeowners Association fees typically include:
Recreational facilities such as pools, playgrounds, field and courts (e.g.: tennis, basketball)
Green areas around the facility including benches
Facility parking lots
It is also important to note that fees for condo association management may vary depending on the size of the unit, whereas homeowner’s association fees are typically one standard fee.
Whose fees are cheaper?
Condo association management tends to have a higher fee outright, since it covers more things to improve and upkeep. Depending on the size of the unit, fees may be adjusted higher than originally anticipated. However, when things need to be fixed or updated, it is likely to have a lower out of pocket fee. Homeowner’s association fees are typically lower outright, but do not include any maintenance on the house itself. For this reason, things that break or need upgrading will be directly out of pocket. In simple terms:
Condo association management has:
Higher monthly fees
Lower out of pocket fees when something needs to be fixed / upgraded
Homeowner’s association has:
Lower monthly fees
Higher out of pocket fees when something needs to be fixed/ upgraded
Although condo association management and homeowner’s association operate under a different set of laws, these vary greatly from state to state. It is important to consult with a real estate agent and lawyer in your area to understand the individual legal differences of each, and how it will pertain to property ownership in that jurisdiction.
Choosing between condo association management and homeowner’s association
Both condo association management and homeowner’s association have certain advantages and disadvantages. It is impossible to determine which is better for one person or another, but something each individual must determine for themselves. Though they are very closely related, the differences are important when considering where to live. Both condo association management and homeowner’s association do have boards that their residents can sit on to ensure funds are being allocated to what the residents deem appropriate and necessary. In some places, fees can also be lowered in both condo association management and homeowner’s association depending on board choices and decisions.
If you need any information about our condominium association management services just give us a call! (360) 738-3700