Co-op maintenance fees cover the operating expenses for the building and usually include:
- Property taxes
- Any underlying mortgage (and interest) on the building
- Building insurance
- Management fees and salaries (i.e., doorman, maintenance)
- Common area upkeep, etc.
In condos, this fee is frequently known as the “common charge.”
Maintenance fees can also include:
- Heat and hot water
- Plants and flowers in common areas
- Bike room or storage room use
- Pest control
- Parking spots
- Trash and snow removal
If electric is included, usually the maintenance fee is a bit higher in the summer due to air conditioning use. The specifics vary from one co-op building to another.
How big of a maintenance fee you pay is based on the number of shares your co-op unit holds in the corporation. In other words, the bigger the unit, the more costly the maintenance fee. It’s wise to ask your broker what exactly is included in the maintenance fee for a co-op building you are considering purchasing before you sign a contract.