The neighborhood community fee is a factor to consider when purchasing a home. This recurring expense, sometimes unknown or not very transparent, is based on variables such as the location of the property, the common facilities, and the decisions of the board of owners, among others. It is vital to understand and break down these elements to have a clearer picture.
What is the neighborhood community fee?
The neighborhood community fee is the periodic payment that each owner of a property must contribute for the maintenance and common services of the building or residential complex where their home is located. Depending on the agreements even in the community, this fee may include services such as cleaning, maintenance of common areas, repairs, and extraordinary expenses for improvements or major repairs.
How is the neighborhood community fee calculated?
The community fee is calculated mainly based on two elements: the property coefficient, which is established in the horizontal division deed, and the expenses that the community generates. The property coefficient determines the proportional part of the property that each owner owns, and is usually based on factors such as the surface of the floor, its location within the building or its usefulness.
What are the expenses that are covered with the community fee?
The expenses that are covered with the community fee can vary considerably depending on the type of building and the decisions of the community. Generally, these include maintenance expenses such as cleaning, gardening, minor repairs, administration expenses, and basic services such as electricity and water in common areas. In addition, extraordinary expenses may be included, such as major reforms, emergency repairs or the installation of new services.
When can community fees be increased?
Community fees may be increased in special cases, when the community of neighbors decides to undertake a work or significant improvement in the building. This increase must be approved by the owners’ meeting and usually requires a majority vote.
In short, the neighborhood community fee is an important element to consider when purchasing a property. It is advisable to find out adequately about how this fee is determined, what expenses it covers, and when it could be increased, to avoid surprises and to be able to plan in advance.
