A buyer I was helping recently asked a question I hear a lot, usually in a slightly different form each time. They'd been looking at a couple of one-floor condos, and a friend told them to skip the condo and buy a simple house instead, since paying someone to mow the lawn would cost less than the monthly HOA fee.
So, is that right? Is a condo fee really more expensive than owning a house?
Short answer
Month to month, usually yes. Paying for lawn care on a single-family home will almost always cost less than a condo's HOA fee. But that comparison leaves out most of what the fee is paying for, and once you count those costs, the two tend to come out closer over time than they look on paper.
What the HOA fee actually covers
A condo fee isn't a lawn care bill. In a typical Columbus-area ranch condo community, the fee covers exterior maintenance, lawn care and snow removal, and the association handles repairs to the outside of the building. In one community I looked at recently, a roof vent leak was fixed by the HOA, not the owner.
When you own a house, all of that is yours. Roof, siding, gutters, driveway, exterior paint, trees, snow. Those costs don't show up every month, which is why a house can feel cheaper. They show up all at once, usually when you least want them to.
New house or old house changes the math
How a condo fee compares really depends on the specific house you'd buy instead. A newer home with a young roof and newer mechanicals may run very little in upkeep for years, and in that case the lawn service math holds up better. An older home can be a different story. If the roof, windows or driveway are near the end of their life, the money you saved by skipping the HOA fee can disappear quickly.
My read: don't compare the HOA fee to a lawn service. Compare it to lawn care plus a realistic yearly budget for the exterior of the house you'd actually be buying.
The rules matter as much as the fee
Cost is only half of it. For a lot of buyers, the condo rules end up being the bigger issue. Before you write an offer on a condo, read the community's recorded Declaration, Bylaws and Rules and Regulations. A few things to look for:
Parking and vehicles. Most condo communities limit RVs, campers and larger commercial-type vehicles in the driveway, usually to somewhere between 24 and 72 hours. If you have a truck or van that won't fit in the garage, check exactly what's allowed and where.
Pets. Many communities limit the number of pets, and many restrict certain dog breeds. If you have a dog, confirm it's allowed before you get attached to the unit.
Renting it out later. If you might want to rent the condo someday, make sure the documents allow it. Some communities limit or prohibit rentals.
Labels on the listing. A listing might be tagged as a 55+ community, but that only applies if it's written into the condo's legal documents. Check the recorded documents rather than trusting the listing.
Why this matters
A condo can be a great fit, especially if you want one-floor living and don't want to deal with snow, mowing or a roof replacement. But the monthly fee alone won't tell you whether it's a good deal, and the rules can rule a unit out faster than the price ever will. In this case, the buyers realized the parking and pet rules didn't work for them, and that settled it.
If you're weighing a condo against a house, I can pull the association documents for a specific community and help you compare the real cost of each, not just the monthly number. You can also browse what I cover for buyers on my buying a home page.
Have a question of your own? Let's talk.