Thanks to the pandemic, much has changed for condominium complexes. With people working from home, it changed how HOAs need to operate. Because of this, there is a high you will start seeing HOA dues increases or special assessments. Here are three reasons why:
- Higher utility bills: Because occupants are working from home, they are using more utilities such as water. In the initial HOA budget, it didn’t account for the increased usage because it was based on past assumptions. Now with more people working from home indefinitely, the budget needs to change.
- Higher usage of the systems: For the same reasons as before, more usage means more wear and tear. This could include primarily of the plumbing. Be prepared to start seeing emails go out about plumbing repairs and the like.
- Retrofitting is underway: Condo complexes with parking underneath are now required to do earthquake retrofitting if they were built prior to 1978. Some complexes have the money for it, others don’t. In 2020 I represented a buyer and a seller in an Encino complex that hit their owners with a special assessment. In both cases, the Sellers paid off the assessment for the new buyer.
So, if you are looking to buy a condominium, what do you do? You ask questions. Review the minutes from the HOA meetings, look at the budget and actual numbers that shows what they spent money on and more. It is also free to ask the HOA questions and see if you get the answers you want. Being prepared with knowledge is always your best asset.
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