Everything You Need To Know About Condominium Associations

Introduction

Condominiums or “condos” shouldn’t be something new for you if you’ve been a part of managed communities. While most people think condos refer to homes—that’s not always accurate. The full spectrum of the condos is more much versatile than most people think.

It’s why Chicago property management services have become so popular. The Condo Price Index for Chicago shows a substantial price increase over the years and is becoming more prevalent in the real estate market.

Therefore, it’s crucial to understand and comprehend the distinctions for buyers who prefer living in condos. In this article, we’ll discuss some major concerns regarding condominium associations.

Condominium: Definition

A condominium doesn’t refer to a building or property. Almost any property, whether a simple real estate building or a multi-unit complex, can be a part of the condominium style of ownership.

The main difference among these is the ownership type. You likely want the property in your name if you are a property owner. However, owning it also requires maintaining the elements of structure as well as the amenities.

What Makes Condominium Association Unique Compared To A Homeowners’ Association?

In a homeowners’ association (HOA), the association has the right and the ownership over areas, which include the:

• Pools
• Lobbies
• Gyms

All the members of the association are owners of these areas and are the caretakers of these properties. It can be pretty challenging to manage these properties, which is why condo management in Chicago is so important.

In a condominium association, every owner has a fraction of the total property—However, the association doesn’t own a complete property. It’s necessary to understand this difference because it determines the following:

• Operations
• Procedures
• Policies

Moreover, the distinction also determines the following:

• Taxes
• Refinancing requirement
• Insurance

With the help of a Chicago condominium management company, you can ease the management of these companies and ensure you have a flawless experience.

How Does The Condominium Association Operate?

An elected board of volunteers takes care of the condominium association’s affairs. It is pretty similar to the HOA system we’ve discussed. However, the condominium association takes care on behalf of the owners.

Both of these entities have governing documents and can be nonprofit. These associations also have:

• Rules
• Declaration
• Bylaws
• Articles of incorporation

With these elements, managing day-to-day affairs are simpler. However, the regulations of the association are more comprehensive when compared to the HOA. Therefore, all real estate enthusiasts must keep these elements in mind while dealing with condominium associations.

Do All The Members Of The Condominium Association Have To Pay A Fee?

Yes, all the members within the condominium association have to make a fee payment. The exact amount paid differs based on the property type and the amenities provided.

However, there’s still a payment. Generally speaking, this condo fee is higher than the average fee for an HOA. It’s more because the condominium owners are responsible for property management and shared elements. However, the owners have to maintain their own homes in an HOA.

Bottom Line

Understanding condominium associations ensures taking better financial decisions for properties. It’s understandable if you’re confused, and we would love to help you.

Feel free to connect with the professionals at Connected Management for more information, details, and expert guidance.