A family looking for a condo in Lexington found a building they liked, but they had to forgo the contract because they owned two dogs. They liked the price and location, but the building's management rules limited pets to one per household. Fortunately, they checked the regulations just before making an offer; if it had been after the contract, it would have been much more complicated. So why is it difficult to find out about these regulations in advance?

One of the first questions that comes to mind when purchasing a condo is, "What exactly is included in the management fees?" The median monthly management fee for Lexington condos is around $350 (ezhomesearch.com), with fees in the downtown area rising to $368 (bluegrassteam.com). Generally, fees range from $100 to $300 per month, but buildings with more amenities tend to have higher fees. Due to the area's characteristics around the University of Kentucky, there is a steady demand for condos near downtown, so newer or remodeled buildings tend to have higher management fees.

So, what is this management fee used for? Typical items include exterior and roof maintenance, master insurance, management of common facilities like pools and gyms, landscaping, trash collection, and contributions to a reserve fund. Unlike Florida, Kentucky does not have a specific law mandating reserve fund contributions, so the level of contributions can vary significantly based on the board's judgment. In such cases, it is safer to review recent financial statements and budget execution records rather than relying solely on the management fee numbers in the property listing.

Why are pet regulations so important? The bylaws can restrict not only pet ownership but also short-term and long-term rentals and renovation projects. These specific regulations are often not clearly stated in property listings, so if you find a building you like, it's advisable to request and read the regulations before signing a contract. For families with pets, it's important to check not only the number of pets allowed but also any weight or breed restrictions.

There is one more point to consider. The management regulations can be amended through the association's general meetings, so even if the current pet regulations are lenient, there is a possibility they could be tightened by a vote of the homeowners in a few years. Conversely, if the rules are strict now, they could be relaxed. Therefore, it is helpful to inquire not only about the current regulations but also about any amendments made in recent years. Families looking for condos in Lexington should check the following:

• Management regulations regarding pets, rentals, and renovations
• Recent HOA financial statements and reserve fund status
• History of special assessments and delinquency rates
• Percentage of commercial space affecting loan approvals

Mortgage lenders also review the financial health of the HOA, so if the reserve fund is low or the delinquency rate is high, the condo may be classified as non-warrantable, making loans more difficult to obtain. For families moving to Lexington from another state, it's also worth noting that property tax and insurance calculation methods may differ from those in their previous state. While school districts can be referenced through GreatSchools ratings, it's advisable to verify the assigned school before purchasing.

Note that there are often instances when you may not receive the management regulations immediately upon request. In such cases, you can include a review period for the regulations as a condition in your offer. This is beneficial not only for families with pets but also for those planning renovations to expand their home office space, as checking renovation-related clauses can help avoid future complications.

This article is not investment or legal advice, and it is recommended to carefully review the HOA regulations with a real estate professional before finalizing any contracts.