Article

While there have been many new condos being built in Nashville, there is still much to say about the Nashville condos that have been around for some time.  These condos have the same amenities and high class living styles as the newer condos, and for that they boast the same amenities fees.  The same amenities fees are needed since in the older buildings, maintenance and repairs are going to be inevitable.  The association has to make sure there is enough money in the reserves that will be adequate to cover any costs that are likely to arise.   

Many Nashville condos buyers understand before they apply for a loan that a mortgage isn't their only monthly payment. But fees can work against buyers who are squeezing their budgets to purchase in a desired condo in Nashville. Lenders take those fees into account when they approve someone for a mortgage. The hardest thing for a real estate agent to have to deal with is when the price of the condo is right at the potential buyer's budget limit, and the association fees will end up pushing them out of a deal on the perfect Nashville condos.  

Homeowners' associations in condominium developments also charge fees if the neighborhood has a common area or gate. Typically, the condo owner is paying less than $100 a month.  The point of any association fee is to protect owners' investments in a property. In a condo situation, operating costs to maintain high-end amenities get expensive.  While the condo fee is predictable, the number still makes condo owners cringe. When a condominium building faces major repairs and does not have the money in reserves to cover them, the association board votes on whether to enact an assessment. Basically, this is a bill for services, and the tab for individual owners can easily push five figures.  

All assessments are voted on by association members in the condo complex. New owners can avoid the "shock" by getting governing documents, the past five years' budgets and a history of association meeting minutes before purchasing the new condo. It's also critical to find out how much a building has in its reserves. Usually, new condo owners pay two months worth of fees upon move-in and this money is invested in the reserves, which acts as a savings account for the condominium. These reserves are invested, and in a best-case scenario, the money builds up over time and is available for exterior repairs.  

Older condo buildings are more likely to pull from their reserves, and then some, to finance upkeep. And smaller developments bear a greater burden, dividing assessment sums by fewer condo units.  The key to avoiding excessive fees is to maintain a stable reserve. Older buildings that don't adjust association fees regularly can allow their building bank accounts to dwindle. Then, when major repairs are in order, the money must come from residents through assessments or a sudden, drastic increase in association fees among the condominium.  

For the most part, and especially in new buildings, condo fees will not increase each year. And because most of the new buildings will not need infrastructure repairs any time soon, new owners probably won't face quick assessments. If someone needs to buy into a larger condo development, it lessens the financial burden to individual condo owners.