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Are Maintenance Fees Really High?

Understanding the True Cost of a Condominium

When considering the purchase of a condominium one of the considerations are the monthly Maintenance (Strata) fees for the complex. What may seem high initially can actually be reasonable when you break it down to the individual costs. What is usually included? To start with, most fees include Water, Sewer, Rubbish service, Landscaping, Pool service, Utilities for Common Elements, Maintenance of the Building, Grounds and Parking lot, Insurance on the building including Hurricane and Liability, Wages and Salary of the Staff , Reserve funds for future Maintenance and even Basic Cable. Some complexes even include electricity in the fees.

Now think about what it would cost to cover these costs for a home? A home needs to be maintained, lawns mowed, yards need to be watered, the pool needs regular service, Homeowners Insurance etc. An absentee owner needs to hire someone for many of these things just to keep the home in basic shape. Also, Maui is an island with limited resources. Unlike the mainland Maui does not have hydroelectric or natural gas generators for power. Electricity is generated by burning diesel which is brought in on ships and subject to market prices. Water is also a limited supply and rates are much higher than found in other places.

All of these individual bills add up but the advantage with a condominium is these costs are shared between all of the owners. This ends up bringing the individual cost down per unit. Also, the maintenance fees eventually come down to the homeowners of the complex. The budget and resulting fees are reviewed and approved by the homeowners annually. When looking at these costs, it is easy to see that the maintenance fees may actually be reasonable. After all, do you really want to come to Maui and mow the lawn?

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