50% Rule and Condo HOA

[Bill Schrimpf]

50% Rule and Condo HOA

The 50% rule looks like it's a rule of thumb for properties where the owner would be responsible for a long list of capital and operating expenses items such as roofs, HVAC, landscaping etc. Does it make sense to use a different percentage for a condo where the HOA takes care of many of these items?

Maybe 25%-30%, since it’s still prudent to budget for interior repairs and vacancies…

Thanks in advance for your thoughts!