How much will our carrying costs increase after we buy a co-op or condo?

By James Woods
Managing Partner

There’s no avoiding increases over the long-term, but you can keep an eye out for certain red flags that may indicate a building is more likely to institute steep hikes in monthly maintenance or common charges, our experts say.

Monthly fees are up in both condos and co-ops, according to The Cooperator, thanks to the rising costs of energy and staff wages. Moreover, the Covid pandemic has meant residents spending more time at home and in common spaces, which in turn means more wear-and-tear, and the need for costly repairs. As a result, on a national level, the monthly median condo fee increased by 19 percent from August 2020 to August 2021, according to Zillow. 

In New York, co-ops and condos usually have a specific range of annual increases for carrying costs, but the upheaval of the past few years has changed that. 

“Most condos and co-ops set annual maintenance increases and they typically range from 3 percent and perhaps up to 5 percent,” says James Woods, Esq., managing partner at Woods Lonergan (a Brick Underground sponsor). “With some research, you will be able to learn the prior history of increases. Given the current economic environment, however, you can expect the board to consider increasing maintenance further to keep pace with inflation and the increased costs of goods and services needed to operate the building.” 

About the Author

James Woods, Managing Partner of Woods Lonergan, holds more than 25 years of experience in corporate, real estate, and business legal matters. His expertise in handling negotiations, litigation, jury trials, and all forms of alternative dispute resolution spans multiple areas, including corporate, real estate, and commercial litigation. James actively represents dozens of Cooperative and Condominium Boards and serves as counsel to many Corporate Boards. Prior to founding the firm, James proudly served as an Assistant District Attorney for Nassau County and handled both jury and bench trials. With experience that also covers sophisticated transactions and complex acquisitions, James also serves as counsel to several domestic companies in a range of industries and commercial arenas, including real estate, insurance, banking, transportation, and construction. If you have any questions about this article you can contact attorney James Woods through his biography page.

Disclaimer: The information in this article and blog post (“post”) is provided for informational purposes only, and may not reflect the current law(s) in every jurisdiction. No information contained in this post should be construed as legal advice from Woods Lonergan PLLC or the individual author(s), nor is it intended to be a substitute for legal counsel on any subject matter. Nothing herein shall be construed to create an attorney-client relationship with Woods Lonergan PLLC. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient’s jurisdiction. This post is attorney advertising.
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