by Elizabeth Bolton – For many first-time homebuyers condo fees seem like an extra, onerous cost. Some buyers choose not to consider condos thinking that they would be “wasting” money by having to pay condo fees.

If you’ve owned a condo in the past and been at all involved in the budgeting for expenses you’ll understand the need for monthly financial contributions. The costs of home ownership become even clearer if you’ve owned a single family house. Buildings take money to maintain. Every homeowner should anticipate making regular investments in repairs, upgrades and maintenance. Additionally, unexpected problems can add up to thousands of dollars per year in out-of-pocket costs.

Typically, a large share of condominium fees can be traced directly to expenses you would be paying by yourself if you owned a house. When you buy a house the bank requires that you pay for homeowner’s insurance and wants to see evidence that you’ve paid for a year’s worth of insurance coverage. Condominium complexes are covered by a master insurance policy which covers many of the things that a homeowner’s policy covers. You’ll usually need to purchase additional coverage for the inside of your unit but the master insurance bill is a large share of the association fee. Another common expense included in your fee are payments for municipal water and sewer charges. You would be paying this bill yourself if you owned a house.

Your condo association should be contributing money towards a reserve account each month. You want to have a kitty set aside in order to cover unexpected costs and to save long term for larger projects. If your association isn’t building large reserves you may want to set aside money in an account yourself. That way you’ll have funds available in case a repair is needed in your complex and a special assessment is billed to take care of it.

Other costs that you would be responsible for on your own if you lived in a house include money for landscaping, snow removal, trash collection and maintenance. Homeowners – whether they own houses, townhouses, or condominiums — need to take care of routine maintenance to preserve the value of their property. Tree trimming, painting, driveway sealing, drain snaking, gutter cleaning, deck staining, etc. — the list is long but the repairs, though not exciting, are critical to keep small problems from becoming larger, more expensive issues. As a condo owner you’re sharing those costs via your monthly condo fees.

Larger complexes with more amenities will have more expenses. Elevators are expensive to maintain and pools typically add substantially to the budget. Luxury amenities such as health clubs, golf courses, valet parking, etc. will add large charges to a budget. Large associations may have several employees on the payroll — a doorman or concierge, a superintendent, custodians, perhaps a manager. Additionally, most large associations employ a management company to oversee the complex. Management company fees are an expense that isn’t really comparable to expenses of single family house ownership. You’ll want to review the association’s financials to make sure that those charges are reasonable. You’re benefiting by having someone else do the work — often an attractive benefit of condominium living — but you want to ensure that the money is well spent and within reason.

Don’t let condo fees deter you from becoming the proud new owner of a condominium. The fees are part of the costs of owning property. Do your homework, review the condo financials, and get a handle on where your money will be going. Budget accordingly and you’ll be prepared for the challenges — and the rewards — of homeownership.

Elizabeth Bolton works with many condo buyers in Cambridge MA often showing Kendall Square condos and Cambridgeport condos for sale to interested home buyers.