Who Pays the Condo Fees Directly?

[UTCVenturesLtd]

If i were to purchase a condo to rent out, would i the owner pay the condo fees and add it to the rent or would the tenant add it to his/her expenses to pay? I have never bought condo property and that situation may arise in the near future. Better to use foresight than hindsight!

 

[ChrisDavies]

QUOTE (UTCVenturesLtd @ Oct 16 2009, 10:54 PM) If i were to purchase a condo to rent out, would i the owner pay the condo fees and add it to the rent or would the tenant add it to his/her expenses to pay? I have never bought condo property and that situation may arise in the near future. Better to use foresight than hindsight!

You pay the condo fees directly to the board. If fees aren`t paid, the board can put a caveat on the title, blocking you from selling it, and that`s not an ability you want to give to a tenant.

 

[gwasser]

QUOTE (ChrisDavies @ Oct 17 2009, 03:01 AM) You pay the condo fees directly to the board. If fees aren`t paid, the board can put a caveat on the title, blocking you from selling it, and that`s not an ability you want to give to a tenant.

In addition to some or all ulities, condefees also include money spend on building maintenance and a contribution to the capital replacement or reserve fund. The latter is used to pay for replacement of wornout building components such as roofs, elevators and worn-out flooring in common areas.

As these maintenance and replacement costs are already considered part of the overall rent, you would be `double dipping`.

 

[Thomas Beyer]

QUOTE (UTCVenturesLtd @ Oct 16 2009, 11:54 PM) If i were to purchase a condo to rent out, would i the owner pay the condo fees ..
yes .. plus you as the owner pay property taxes, rental management fees and likely a mortgage.

Rent is then charged to tenant to whatever the market rate is .. INdependent of what your condo fees, taxes, management fees and mortgage payments are !

 

[gwasser]

QUOTE (thomasbeyer2000 @ Oct 17 2009, 11:53 AM) yes .. plus you as the owner pay property taxes, rental management fees and likely a mortgage.

Rent is then charged to tenant to whatever the market rate is .. INdependent of what your condo fees, taxes, management fees and mortgage payments are !

We`re playing semantics here. But Thomas is right. Rents are set by the market place and the landlord is supposed to pay all the aformentioned costs including the condofees. If the market rent does not cover those expenses then we have a property with negative cashflow, i.e. a property REIN members are not supposed to invest in.