A condominium association is essential for managing shared spaces and amenities in a condo community. It enforces rules, maintains common areas, and handles finances to ensure a well-maintained living environment. Many people confuse condominium associations with HOAs, but there are significant differences between the two.
What is a Condominium Association?
A condominium association or COA is an organization responsible for managing and maintaining the common areas of a condominium complex. This association ensures that shared spaces, such as hallways, lobbies, pools, gyms, and landscaping, are kept in good condition. The association also enforces community rules, manages finances, and handles insurance coverage for common areas.
A condominium association is typically governed by a board of directors elected by the unit owners. The board is responsible for making decisions about the community’s maintenance, budget, and enforcement of rules. The board may also appoint committees to oversee specific areas, such as landscaping or social events.
In many cases, the association hires a management company to handle day-to-day operations. It is important for condo boards to look for a management company that specifically offers condo management services, as the needs of a COA can vastly differ from the needs of an HOA.
As with HOAs, condominium associations secure funds through monthly dues that unit owners must pay. These dues cover routine maintenance, management fees, insurance, and more. In some cases, the association may levy special assessments for unexpected expenses or significant upgrades.
Condo Association vs HOA: Differences and Similarities
A condominium association is similar to an HOA in some ways, but there are also plenty of differences. It is important to understand what these are before potential buyers commit to a purchase.
Ownership and Property Boundaries
In a condo, owners typically own the interior space of their units but share ownership of common areas. These include the building structure and exterior grounds.
In contrast, in an HOA, homeowners own both their homes and the land. This gives them more control and freedom, but HOAs are also known for architectural and landscaping guidelines.
Rules and Regulations
Condominium associations typically have stricter rules when it comes to shared spaces and unit modifications. For example, owners may need board approval for renovations that could affect the building’s structure or exterior appearance, even if the renovations are interior.
Homeowners associations also tend to have rules and regulations surrounding architectural modifications. These rules usually cover exterior changes and improvements only, allowing owners the flexibility to make interior changes.
Fees and Assessments
Condo fees are generally higher than HOA fees because they cover more extensive maintenance. These include exterior building maintenance, insurance for common areas, and shared utilities.
Homeowners associations often have lower fees compared to condos since homeowners are responsible for maintaining their own properties. Of course, fees can still vary greatly depending on several factors such as location, amenities, and size of the community.
Maintenance and Repairs
Condominium associations are responsible for maintaining the building’s exterior, roofing, plumbing, and common amenities. There are more general and limited common elements, too, as unit owners can share balconies, hallways, elevators, stairwells, and lobbies.
In contrast, HOAs maintain community spaces like parks, pools, and clubhouses. Individual homeowners handle their own property maintenance, removing that responsibility from the association.
Insurance Coverage
Condo associations insure the building’s structure and common areas, while individual owners need insurance for the interior of their units.
In HOAs, homeowners must carry insurance for their entire property. This includes insuring the building and land.
Pros and Cons of Living in Condo Associations
When considering whether condo living is the best option, it is essential to look at the pros and cons. No community is perfect, so these pros and cons can still change depending on the specific association.
Pros of Condo Living
Here are the advantages of living in a condominium association.
- Less Maintenance Responsibility. Owners are only responsible for maintaining the interiors of their units. Meanwhile, the association handles exterior and common area maintenance.
- Access to Amenities. Condo owners enjoy shared amenities like pools, gyms, and common rooms.
- Security. Condos often provide enhanced security features due to the nature of their living arrangements. There are typically lobbies with doormen or security codes.
Cons of Condo Living
Here are the disadvantages of living in a condominium association.
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- Higher Monthly Fees. Compared to HOAs, condo owners pay higher dues.
- Stricter Rules. Condo associations enforce more restrictive rules regarding renovations, especially ones that may affect exteriors.
- Lack of Yard Space. Due to the way they are structured, unit owners usually don’t have their own yard space. Some communities, such as townhome communities, offer shared yards, but condos generally don’t.
How to Choose Between Condominium Associations and HOAs
Choosing between a condominium association and an HOA depends on lifestyle preferences. Those who are looking for low-maintenance living and shared amenities should ideally go for condos. Meanwhile, HOAs also have amenities, but owners are responsible for maintaining their own properties.
Potential buyers should also consider monthly dues, insurance costs, and the possibility of special assessments. Condos generally have higher fees due to shared building maintenance and amenities. Of course, this isn’t to say that all HOAs have low fees. It can still change on a case-to-case basis.
Finally, condo communities often have closer interactions due to shared spaces. On the other hand, HOAs tend to provide more privacy. Both types of associations also focus on instilling a sense of community.
Managing a Condominium Association
The board of directors is responsible for condo association management. To become a board member, unit owners can run in the elections, but there may be qualifications depending on the community bylaws.
Condo board members are responsible for a number of things, including but not limited to:
- Maintaining common areas such as hallways, lobbies, elevators, pools, gyms, and landscaping
- Overseeing repairs and renovations
- Creating and managing the annual budget
- Collecting monthly dues and special assessments
- Maintaining reserve funds
- Enforcing community rules and regulations
- Handling violations and issuing fines or penalties
- Obtaining insurance coverage
- Communicating with residents
- Hiring and overseeing vendors and contractors
- Negotiating contracts
- Resolving disputes
- Developing emergency plans and safety protocols
- Ensuring compliance with state condo laws (Texas Condominium Act and Texas Uniform Condominium Act) and governing documents
Due to a lack of time or expertise, many condo boards hire a management company for help. A professional company can alleviate the board’s burden and take care of day-to-day management.
The Bottom Line
A condominium association plays a vital role in maintaining shared spaces, enforcing community rules, and managing finances. Although they are not exactly the same as HOAs, there is a lot of overlap in terms of governance.
Graham Management offers exceptional condo management services to Houston communities. Call us today at (713) 334-8000, request a proposal, or contact us online to learn more.