One of the greatest advantages to owning a condo is the fact that the homeowners Association takes care of all external maintenance of your property. Additionally, if your condo purchase comes with amenities such as access to a clubhouse or pool, the homeowners’ dues are what takes care of these additions.

Before you purchase a condo, always ask to see the financial documents related to the homeowners Association. These documents are good indicator of the overall financial health of your condo community. Not to mention, if it is found that your homeowners association is in financial trouble, it can affect the future marketability of your home since amenities may end up being cut in order to save costs. A homeowners association that shows signs of financial trouble may also end up raising their dues or taking other measures to try and get more money from the condo community.

A healthy homeowners association should have two thirds of their budget put towards water, lights, landscaping, and other such measures. The rest of the budget should be in reserve for potential major repairs that all properties need from time to time.

If the expenses of your homeowners association do end up exceeding the revenues, you should always ask the board what they plan to do about this discrepancy. If they cannot give you a good answer or the answer is something that you do not like, it may be wise to look elsewhere to make a condo purchase. You do not want your perfect condo to be beleaguered by financial troubles within the homeowners Association. Doing due diligence on this matter can save you a lot of headache in the future.