Managing Partner
There’s no avoiding increases over the long-term, but you can keep an eye out for certain red flags that may indicate a building is more likely to institute steep hikes in monthly maintenance or common charges, our experts say.
Monthly fees are up in both condos and co-ops, according to The Cooperator, thanks to the rising costs of energy and staff wages. Moreover, the Covid pandemic has meant residents spending more time at home and in common spaces, which in turn means more wear-and-tear, and the need for costly repairs. As a result, on a national level, the monthly median condo fee increased by 19 percent from August 2020 to August 2021, according to Zillow.
In New York, co-ops and condos usually have a specific range of annual increases for carrying costs, but the upheaval of the past few years has changed that.
“Most condos and co-ops set annual maintenance increases and they typically range from 3 percent and perhaps up to 5 percent,” says James Woods, Esq., managing partner at Woods Lonergan (a Brick Underground sponsor). “With some research, you will be able to learn the prior history of increases. Given the current economic environment, however, you can expect the board to consider increasing maintenance further to keep pace with inflation and the increased costs of goods and services needed to operate the building.”