Should i Account for Repairs and Cap ex for Condos?

Question

Should i Account for Repairs and Cap ex for Condos and strata? or does the monthly Maintenance  fee take care of that? does anyone else who invests in condos take account for the repairs, and cap ex's and all the other stuff like insurance, taxes. mortgage, property management fees, vacancies etc...

Russell Brazil · Answer

You will still have repairs and caper, but they will be considerably lower than single families. My repairs on my condos are almost non existent, like $100 a year each. But I do have some capeX coming up on one since I need to replace the flooring and HVAC in one soon.

Fred Heller · Answer

The maintenance fee generally only covers routine maintenance like landscaping, garbage pickup, usually water. It may also cover minor repairs to the exterior. But if there are any major capex expenses like a new roof, the association will most likely order a special assessment. Good associations will plan for capex expenses as far out as they can.

As far as repairs inside the condo, you're on your own. Anything in your condo's airspace is your responsibility, like appliances, new carpet, etc.  You can mitigate the risk by purchasing a home warranty. They can be a pain to deal with, but also save you money if any major repairs come along.

Theoretically, anything behind the walls, like plumbing, should be the association's responsibility. But they are masters of spin and will always try to put it back on you. Let's say a pipe inside the wall springs a leak. If it's a common pipe that services several units, that would be pretty hard for them to get out of fixing. But if it's a branch that only feeds your unit, they will say it's your responsibility.

That was a long answer that gets us to the bottom line that yes, you should plan for repairs/maintenance.