A family with two cats once considered two condos in Santa Monica. One had no limit on the number of pets but had an HOA fee of $810, while the other had a lower fee of $525 but limited pets to one. This situation required weighing the pros and cons of both properties side by side.

Typically, HOA fees cover building exterior and roof maintenance, master insurance, common area management, landscaping, trash collection, some utilities, and reserves. Additionally, living regulations such as pet policies, rental restrictions, and renovation approval processes are also specified in the CC&Rs, making it essential to compare both the fee amounts and living regulations to gauge actual satisfaction.

When looking at Santa Monica condos, monthly fees are seen at levels of $525, $650, and $810. Broadly, they can be categorized into a low range of $200–600, a mid-range of $600–1200, and a full-service luxury range exceeding $1200 up to $3500. If you have the same budget, you need to consider whether to choose a building with lower fees but limited facilities and regulations, or one with higher fees but greater services and freedoms.

While lower fees may seem advantageous, a lack of reserves could mean needing to cover that difference later with special assessments, which can be a burden. Under the California Davis-Stirling Act, associations with major asset values exceeding half of the budget are required to conduct a reserve study, including on-site inspections at least every three years, and as of the 2025 SB 900 amendment, gas, water, and electrical infrastructure are also included in the inspection requirements. It's a more balanced choice to not only compare fees but also consider the reserve ratio.

Buildings near preferred school districts for Korean families tend to have higher fees, but they also maintain a higher level of building management. While school ratings can be checked on GreatSchools or Niche, boundaries often change, so it's advisable to verify the assigned school for the specific address before purchasing. Investors looking for rental income should also consider that while buildings with higher fees may have lower vacancy rates, their net yield could be lower.

When moving from another state, simply comparing the HOA fees of your previous residence with the buildings you are currently considering can lead to misunderstandings. Mortgage lenders review the HOA's delinquency rates, reserve ratios, litigation status, and commercial space ratios, and if they fall short, the property may be classified as a non-warrantable condo, leading to loan denial. Even if you like a building, it's safer to prepare alternatives if this aspect becomes an issue.

The Santa Monica condo market tends to be divided between high-end new constructions near the beach and older, smaller buildings inland. New buildings near the beach have higher fees but are relatively low-risk for major repairs since they are recently built, while older inland buildings may have lower fees but could be nearing the time for roof or plumbing replacements. It's particularly important in this area to assess the fees in relation to location and building age. Rather than concluding that one side is always better, comparing both conditions leads to a more balanced decision.

When comparing two properties, the following items should also be considered:

• Services and facilities included in the fees
• Recent reserve study results and reserve ratios
• History of special assessments in the last five years
• Pet and rental-related CC&Rs regulations

Both lower and higher fee options have their own burdens and benefits, making it difficult to say that one is definitively better. This article is not investment or legal advice, and it is recommended to consult a real estate professional before making any actual contracts.