Condo maintenance fees: A complete guide

If you’re a new condominium board member or a first-time unit owner in New York City, you’ve encountered monthly maintenance fees—but what exactly do they cover, and why do they vary so widely?

These fees are a vital part of keeping your building running smoothly, funding everything from routine upkeep to long-term capital projects.

In this article, we’ll break down what maintenance fees are, how they’re calculated, and why they matter to the financial health of your building and your investment.
 

What are condo maintenance fees?

Condo maintenance fees are monthly payments made by unit owners to fund the condominium's shared services, upkeep, and operational costs. In New York City, maintenance fees are a standard part of condo ownership. These fees vary widely depending on the size of the unit, the services provided in a building, and the overall financial needs of the building. Every condo has its own approach to structuring these costs, but they all serve the same purpose: to keep the building running smoothly and to maintain the shared elements that benefit every resident.
 

What do condo maintenance fees typically cover?

Condo maintenance fees can cover a range of recurring expenses related to building upkeep and management. This includes essential services such as repairs, staffing, and utilities that affect common areas. For most NYC condos, maintenance fees will include:

• Exterior maintenance: Upkeep of roofs, sidewalks, facades, and foundations
   
• Seasonal maintenance: Landscaping, snow removal, care for exterior grounds
   
• Staffing: Salaries for doormen, concierges, porters, and superintendents
   
• Shared amenities: Pools, gyms, lounges, bike rooms, and storage spaces
   
• Insurance: Master policies for the condo association, common areas, and structural components
   
• Utilities: Water, gas, or electricity, depending on how the building is metered
   
• Reserve fund contributions: Money set aside for future major repairs, replacements, and emergency events

Some buildings may cover additional services through condo maintenance fees, which will vary by property. To understand what’s included and how these funds are allocated, owners should review monthly invoices and building bylaws, or contact their property manager.
 

How are condo maintenance fees calculated in New York City?

FirstService Residential partners with condominium boards to create annual building budgets unique to each property. Annual budgets help quantify the total amount needed from condo maintenance fees to cover expenses.

Condo maintenance fees are typically determined by a combination of factors, including the building's projected annual expenses and the square footage or percentage of ownership each unit holds.

As a general rule, the more services and amenities a building provides means higher its operating costs. A luxury building with a pool, doormen, a gym, and concierge services will likely have higher maintenance fees than a pre-war condominium with no amenities and minimal buidling staff.

In most buildings, larger units pay higher condo maintenance fees, since fees are apportioned based on a unit's share of common interest. For example, a penthouse owner would typically pay more each month than a studio owner in the same building. These calculations are often outlined in the building’s governing documents and confirmed during annual budget planning.
 

How and why do boards raise condo maintenance fees?

The reality is that every building will eventually require funding for essential repairs, upgrades, or compliance projects. These costs may need to be covered through special assessments — something many boards prefer to avoid. One way to minimize that risk is by implementing modest, predictable increases to condo maintenance fees each year. These incremental adjustments can help cover rising costs while reducing the likelihood of unexpected charges later on.

It is also important to note that a building that has limited funding in their reserves may be viewed as a red flag to future investors and can negatively impact property values. Therefore, it is important to maintain reserve contribution levels.

"There are currently a lot of inflationary pressures and as a result, boards are getting more hands-on in the budget process. While conservative budgeting is wise, it is most important to focus on being realistic, so that you are prepared for unknown surprises."

—Andrew Lester, President, FirstService Financial
  

Property upgrades like a new gym, rooftop pool, or playground are popular and can improve overall property values, but they require an investment. Residents are more likely to embrace an increase in dues when they see the value in investing in the property and their quality of life.

Not all increases are centered on popular amenity projects. Major capital improvements are becoming more common as new laws and regulations are passed in New York City. Local Law 87, elevator regulations, and the Climate Mobilization Act are just a few examples. The good news is that most regulations are not required to be completed immediately, which can give a property the opportunity to gradually increase fees over time.
 

Potential risks of avoiding condo maintenance fee increases

Deferring maintenance is often suggested as a way to keep common charges and fees steady, but it will generally lead to higher costs for emergency repairs down the road.

"It will lead to an inevitable increase in operating expenses and even impact insurance costs and claims."

—Sean Kent, senior vice president, First Service Financial
  

 

We make it easy for condominium and cooperative boards to manage and protect their assets.

We understand the temptation to keep property budgets flat. It may seem easier, but in the long run, it costs more money, time, and stress for everyone involved. To learn more about how a professional property management company can assist your building with effective, long-term budgeting, contact FirstService Residential today.