Tuesday March 11, 2025
What are condo fees?
Condo fees, also known as assessments, are monthly payments required by condo associations to maintain common areas and shared amenities. When you purchase a condominium, you’re not just buying your individual unit — you’re also gaining shared ownership of these common spaces. Most condo owners pay these fees monthly, but some associations bill quarterly or yearly. Fees paid by each unit owner typically contribute to a communal budget to cover ongoing costs. These fees support well-kept properties, essential services, and long-term financial stability within each community.Typical condo fees in Tennessee
On average, typical condo fees in Tennessee range from $150 to $500 per month. However, the amount and structure of these fees can differ based on the property’s location, amenities, and management style. Some smaller condo communities may have lower fees, while larger developments with extensive amenities — such as pools, fitness centers, or concierge services — typically have higher fees. Additionally, some communities may charge special assessments for unexpected repairs or capital improvements not covered by regular dues. Working with a professional property management company like FirstService Residential can help condo associations avoid sudden increases in assessments. We guide boards in creating and updating long-term plans and schedule preventive maintenance to help associations avoid expensive last-minute repairs that drive up fees.Do all Tennessee condos charge fees?
Yes, virtually every condominium community in Tennessee charges condo fees, as they are essential for maintaining shared areas and services.Do you have to pay condo fees in Tennessee?
Yes, condo fees are a mandatory expense for condo owners in Tennessee. When you purchase a condo, you become a member of the community association and agree to abide by the association’s governing documents, which cover fees and assessments. Some potential buyers assume that if they don’t use the fitness center or swim in the pool, they shouldn’t have to contribute. In reality, condo living is a collective arrangement. You own your unit, but you also share in the cost of common property upkeep, which helps maintain overall property values.What is included in typical condo fees in Tennessee?
While every association is unique, here are the most common line items you’ll see in typical condo fees throughout Tennessee:- Maintenance: This can range from landscaping to elevator maintenance or exterior repairs.
- Amenities: A condo community offering a swimming pool, fitness center, or spa likely has higher monthly fees to operate and maintain these features.
- Security or gated entry: Gated communities, security patrols, or surveillance systems add costs to the association’s budget.
- Insurance: Typically, condo associations carry a “master policy” for exterior structures and liability in common areas. Your monthly fees help pay these premiums. This does not replace individual unit owners’ need for interior or personal property coverage, but it covers structural elements that all owners share.
- Utilities: Some condos wrap certain utilities — like water, trash removal, or cable — into the regular fees. Others keep utility costs separate, requiring owners to pay for them individually. Where a building has central heating or cooling systems, fees may reflect a portion of those operational expenses.
- Reserve fund contributions: Beyond day-to-day spending, a portion of each fee often goes to a reserve fund — a savings account used for major repairs or replacements (e.g., repaving parking lots, replacing roofs, upgrading HVAC systems). This helps the association avoid sudden, large special assessments down the line.
- Staffing: Larger or more upscale communities might have on-site staff like front-desk attendants, maintenance workers, or security personnel. Their salaries factor into the fees.
Can condo fees change?
Yes, associations typically have the right to adjust condo fees based on rising costs, reserve fund needs, or updated services. The board of directors votes on the annual budget. If the community chooses to add amenities or needs to repair a major system, fees might increase. However, there are proactive measures that boards and residents can take to help keep costs stable. For example, conducting regular financial reviews and reserve studies can help associations anticipate future expenses and avoid sudden increases due to unexpected costs. Residents who attend open board meetings and participate in financial planning discussions can provide insights and feedback that contribute to smarter spending decisions.Preventive maintenance can also help stabilize costs by addressing minor repairs early to prevent larger, more expensive issues down the line. Well-maintained properties reduce the likelihood of costly emergency repairs that could require higher fees or special assessments. Condo boards should seek competitive bids for maintenance, security, and landscaping services so they are getting the best value without compromising quality. Long-term vendor relationships with clear contract terms can also lead to cost savings. Download our vendor checklist to learn what questions to ask potential vendors for your association.
How FirstService Residential helps Tennessee condo communities
FirstService Residential is a leading property management company serving condo associations across Tennessee. Our teams draw on local expertise and industry knowledge to help protect property values and enhance the life of each resident.- Financial management: At FirstService Residential, our communities have access to a team of financial experts via FirstService Financial who can provide effective lending, cash management, and other banking solutions.
- Insurance: FS Insurance Brokers, a subsidiary of FirstService Financial, utilizes its relationships with highly rated insurance carriers to provide cost-effective programs and products for communities managed by FirstService Residential. Insurance products for our managed communities are provided by the company’s in-house underwriting team or through a highly rated carrier.
- Vendor relationships: Our property managers have established relationships with a network of trusted service providers. This often allows our clients to secure better pricing, streamlined scheduling, and less administrative hassle. Our team can also handle bidding and vetting, so board members don’t need to become overnight experts.
- Resident engagement: Timely communication and streamlined processes help owners understand where their fees go. This clarity can reduce confusion or disputes.
- Reserve planning: We guide boards in creating and updating long-term plans to help mitigate the risk of major repairs requiring sudden, hefty assessments.