A couple of things not mentioned. Fees should be based on the size of the unit. In addition, there should be a budget and that should dictate the maintenance fees.

In addition to other items, the maintenance fees should cover normal wear and tear, i.e., roof replacement and that sort of thing. For example, if the roof is determined to have 10 years life left and the replacement cost is $100k, the fees should be structured so that there is $100k in the bank for that purpose in 10 years. Normally, a condo will get an engineer to do a report. Assessments should not be the norm but only used to cover the unexpected.

This is all mandated in the NJ Condo Act. However, enforcement is all but nonexistent.

it's 100% the total policy, with the same exact coverage as the previous policy.

All I'm saying is that shopping around pays off. Don't just accept a cost for what it is, do your research :)

Let me rephrase that. Yes you are correct premiums can vary. An insurance broker can tack on any commision he/she wants and some companies offer slightly cheaper policies but you get what you pay for with flood insurance.
You save $3000 but what was the total policy amount for?
Was that 50% or 10% of the total policy.

Many shop out flood policies and realize after they file a claim that cheaper often isnt better.

In my experiences if you go with a reputable insurance broker that does the shopping for you, the price is the price.

If a broker doesnt work in your best interest than thats another story.

Quote:

FEMA regulates the amount of coverage required, but not the premiums. You're required to cover 100% of the total replacement cost or $250K per unit, whichever is cheaper. So if you're association has a master policy, you should be able to get 100% of coverage and not carry it on your mortgage policy, assuming you have one (for example, we have 6 units, and the replacement cost, which is what our general building insurance is, is only 1M... obviously that is cheaper). If you think you're premiums are too high, shop around. When our building's insurance was up, we looked at all the different companies (state farm, liberty, etc.) and were able to save almost $3000 a year by switching.

chanj: I also forgot to mention that I noticed you said that everyone in your building just moved in 1 1/2 years ago. Was this a gut-rehab condo conversion? Chances are that the developer probably cut all sorts of corners to keep costs down - doing just enough to pass inspection and give the place cosmetic appeal. I wouldn't be surprised if in the next year or two, you guys will discover that the building needs all sorts of costly infrastructure repairs, like a new roof or new furnace. You may be faced with another maintenance hike or special assessments. I'm just warning you so you can brace yourself (I'd rather be wrong on this and have you pleasantly surprised). Living in a "historic" building has long since lost its charm for me.

There is no magic number. Ask to see a breakdown of the budget (projected and spent). That will give you an idea what your money is going towards.

Also, is there an anticipated project that is coming up in the next few years? Like a new roof, paining, new carpet, etc. that would require a lot of $? they may be building a bank for a project that is several years away.

Just make sure it's not unnecessary management fees due to a greedy management company. With just four units, it should be VERY clear exactly how money is being spent.

JadedJC, I hear ya on the assessments. My maintenance fee is pretty low ($206; heat is not included) but some of the assessments I've had to pay have been ridiculously high. Granted, we could pay it off in three monthly installments, but when we had the bldg refaced my monthly payment was more than a week's salary!!

Like you, I keep extra cash for cases like that.

Thats great if it inc heat ! All you have to do is look at the financial reports your management company should be providing you with.

Also may fail to realize that much of downtown JC is in a flood zone which means you need good ol' flood insurance which costs a ton. also FEMA regulates the premiums so you cant really shop it around. Bottom line is it costs $ to live.

If that includes heat, that doesn't sound too bad actually. There is no right level of maintenance - a lot depends on how much of a cushion of reserves the condo owners/association wish to keep. I always thought the monthly maintenance in my building was set ridiculously low. The result is we have special assessments nearly every year to the tune of thousands of dollars for repairs. To me it's six vs one half dozen. Either way, the money comes out of my pocket. I've just learned to keep a large amount of cash on hand for the stupid special assessments. Also bear in mind that maintenance comparisons between Jersey City and NYC aren't quite fair. NYC apartments are mostly co-ops, which include property taxes in the maintenance because the buildling is taxed as a whole rather than the individual units. Jersey City condo units are taxed individually, so if you want to compare with NYC maintenance, you need to add the monthly property tax to the stated maintenance for the unit.

Wow! Only $375? I live in a small one-bedroom in Lincoln Park, brick, not at all as noble or assuming as a brownstone in VVP, and I pay $216. But then, when I was apartment-shopping in Queens, the maintenance fees were in the $800 range, which brings me to Jersey City.

All - I currently live in a brownstone close to VVP. The brown stone contains four 2-bedroom units, and one basement (1-bedroom) unit. The building is over 100 years old, but is still in decent shape.

Over the last 1.5 years since we've moved in, the condo association is raising the monthly maintenace fee yet again, to $375 (from $275 to $325 previously). I'm wondering if this is reasonable for a brownstone of our size, and what is the general fee range out there. From the "for sale" flyers that I've picked up along the street, I feel that this is on the higher end, but is wondering what other people are paying too.

Our maintenance covers water (hot and cold), and heat in the winter.

Any comments would be welcome.

Thanks.