Fees Associated with Phoenix Condos and Townhomes
Phoenix condos and townhomes are among the most highly sought after real estate options in Central Phoenix.
Living in a condo or townhome is an exciting experience, especially since the finest properties are located right in the heart of Central Phoenix where you will find an outstanding mix of architecture and amenities. Phoenix condos and townhomes are known for their modern design, luxurious accommodations and outstanding views of the city.
If you are interested in condos and townhomes in Phoenix you are sure to be pleasantly surprised by the wide range of options available to you.
In fact, Phoenix is known for being home to some of the finest luxury developments and high-rise condos in the area. Some of the most desired condos in Phoenix are located right in the heart of Downtown, which is an extremely popular location for individuals looking for entertainment, culture, dining, shopping and outstanding opportunities.
Phoenix has greatly grown and developed in recent years and it has become an extremely popular destination where residents can live, work and play and enjoy an outstanding lifestyle. The best part about living in Phoenix condos and townhomes is that even though the real estate options are stunning, the cost of living is still relatively low in comparison to other big cities.
While Phoenix condos and townhomes are highly desirable real estate options there is one major difference between buying a condo or townhome and buying a home. Most Phoenix condo and townhome developments are governed by a Homeowner’s Association, or HOA.
It’s important to understand what the HOA does for you and the community and what is covered by your HOA fees. The main benefit of working with a Homeowner’s Association is that if the main gate malfunctions or if the pool needs cleaning you can call the HOA and they will take care of the problem.
It’s kind of like renting in the sense that you don’t need to choose and call a contractor or repairman to fix your issues. But you essentially still end up paying for the service because the payment is taken out of your monthly or annual HOA fees.
Let’s dive deeper into Phoenix condos and townhomes and the fees associated with the Homeowner’s Associations that govern them.
Understanding the Fees for Owners of Phoenix Condos / Townhomes
The Difference Between Condos and Townhomes
First, it’s important to understand the differences between condos and townhomes.
A Phoenix condo is usually one story, or one level and they don’t offer an attached garage or large patio. You may have a balcony, but you won’t have a large patio or balcony.
When you own a condominium you essentially own everything that is within the walls.
A Phoenix townhome is a little different. When you own a townhome you own the unit and the land beneath it. Townhomes are also generally equipped with other typical single-family home features such as an attached garage and a small backyard and patio area.
If you are ready to stop renting, but you are not quite ready to purchase your own home living in a townhome or condo is a wonderful option.
There are various benefits of living in a condo or townhome, mainly because these developments often offer outstanding resort style amenities such as a clubhouse, common socializing areas, a community pool, recreation areas, fitness centers, concierge services and more.
What is a Homeowners Association?
A Homeowners Association, or HOA, is a legal entity that has been created to maintain common areas, and they have the authority to enforce restrictions and regulations for all residents.
Most condo and townhome developments, as well as some newer single-family communities are governed by HOAs, which are usually created when the development is established and built.
When a new resident purchases a condo or townhome that is governed by an HOA they are presented with covenants, conditions and restrictions (CC&R’s), which are enforced in order to maintain the quality and value of the property and development. All residents are expected to abide by these rules and regulations and can be severely penalized, financially, if they break the rules. Some residents may even be evicted if they don’t follow the rules.
Some of the features of a Homeowners Association include:
- Membership that is mandatory for all property owners within the development
- Members are charged mandatory fees
- The HOA has the authority to enforce maintenance and design standards in addition to those set forth by City ordinances
- HOAs are corporations with formal bylaws and there is usually a governing board, which is voted on by residents, which hires a property management company to handle maintenance and enforcement issues
- Most HOAs publish a community newsletter
You can expect the HOA to handle some, if not all, of the following:
- Maintain the landscaping and design of the community
- Maintain all of the recreational facilities – including repair work, replacement and cleaning
- Establish and collect HOA fees that are needed to run neighborhood and community operations
- Provide security for the community
- Make sure there is a common area or space for events and neighborhood functions
- Create and organize social community events
- Take care of street maintenance and any necessary repairs
- Enforce restrictions and standards for exterior home maintenance, control of trash and unkempt properties as well as controlling the commercial use of the properties
- Control over street parking
- HOAs have the power to approve or reject certain plants, flowers and landscape designs
- The HOA enforces fence restrictions, pool restrictions, storage of boats and RVS, the number of pets you are allowed to have as well as breed restrictions and much more
Living in a Phoenix condo or townhome development that is governed by an HOA has its ups and downs.
While HOAs may seem like they are very strict and binding, they are also very helpful in terms of keeping the community in order. You are bound to find people who despise HOAs, people who appreciate them and then others who are somewhere in the middle.
Those who appreciate Homeowners Associations enjoy the fact that the organization protects the value of their homes and neighborhoods and keeps residents safe.
Those who dislike these organizations point out the pricey fees, the politics of the HOA boards, the restrictive rules and regulations and they say certain restrictions, such as placement of fountains or what kind of flowers to plant, are beyond unreasonable.
While there are certain restrictions that are excessive, the benefit of an HOA is that they will make sure the community looks attractive and well maintained. This includes making sure that no one does anything wild such as painting their home black and green or leaving dismantled and out of service vehicles on the front lawn.
What do HOA fees cover?
Whether or not you choose to live in a development that is governed by a Homeowners Association and CC&Rs is an individual choice.
When you purchase a condo or townhome you are signing off your automatic approval and acceptance of the rules, regulations and restrictions set forth by the governing organization. Once you’ve closed escrow on your property you can’t deny paying these fees.
For most homeowners, the typical HOA fee ranges between $30 and $80 per month, but sometimes these fees can be higher.
HOA fees at luxurious developments with specific needs can range between $500 per month and can go as high as $2,500 a month. These high fees can be found at high-end luxury communities such as the Scottsdale Waterfront Residences on Camelback Road where residents own luxury estates and they are offered various services such as subterranean parking and concierge services.
Other communities with high HOA fees, such as the Phoenix Water Ski Lake Communities, offer stunning lakes that must meet specific water quality standards. Maintaining these extras calls for extra money, which is taken out of the HOA fees paid by the residents.
What your HOA fees cover could include anything from maintenance for common areas all the way up to almost all of your utilities, including basic cable.
Make sure to take the time to read over the rules and regulations, the CC&Rs and what your fees are going to cover. Even though it may seem straightforward there can always be legal speak written in to confuse you.
Also keep in mind that the Homeowners Association does reserve the right to raise these fees – even though the managing board has the right to vote on these to accept or deny them, the fees may be raised at any given time at least once a year and up to three percent of the cost of living.
Before You Become an Owner…
Know your rights
When purchasing a home, which is when you sign the CC&R, then you have to abide by the HOA fees and regulations set forth at the time. If these change after the fact, then you have the right to collect signatures from other homeowners in the community who don’t agree with the new changes and you can present this as a formal complaint.
This does not guarantee that the HOA will drop the changes, but it is within your rights to speak out against them. You can also campaign for a board position, where you will have the chance to suggest new regulations.
Find the Perfect Phoenix Condo or Townhome
If you decide that a Phoenix condo or townhome is the ideal choice for you then make sure to connect with Roberta Candelaria and the team at Phoenix Urban Spaces.
Roberta is literally known as “The Condo Lady,” and is the ideal realtor to assist you with all of your real estate needs.
Browse through the outstanding luxurious condos and townhomes currently listed for sale on our website and connect with us if you have any questions or if you would like to go see any of the properties. We look forward to hearing from you!
[button url=”https://www.phoenixurbanspaces.com/contact/” color=”alt” size=”large”]CONTACT US[/button]