When looking at properties in Denver, a common question arises: why is there such a big difference in management fees between condos and townhomes in the same area? To understand this quickly, let's look at the numbers. The average HOA fee for condos in the Denver area is about $732 per month (according to hoacosts.com, based on 77 reports from actual residents). In contrast, the average condo fee for the entire state of Colorado is $475 per month (data from Realtor.com as of January 2026). This means that Denver's fees are over $250 higher than the state average.

This number has a simple meaning. Condos in downtown and nearby areas need to maintain facilities like elevators, structured parking, concierge or security staff, swimming pools, and gyms, which leads to higher labor and utility costs. On the other hand, townhomes often have individual units that own parts of the roof or exterior walls, resulting in lower HOA fees compared to condos that manage the entire building. However, it's important to note that not all townhomes have lower fees; if they manage landscaping and common roads for the entire community, their fees can be just as high as those of condos. This means both advantages and disadvantages should be considered.

For reference, the median condo management fee across the U.S. was $420 per month in 2025, which is a 29 percent increase compared to 2019 (data from Realtor.com). Rising labor costs and insurance premiums seem to be driving this trend.

Here are the items typically included in HOA fees:

• Maintenance of common structures like building exteriors, roofs, and elevators
• Master insurance (insurance for the entire building)
• Operation of common facilities like pools, gyms, and lobbies
• Landscaping, snow removal, and trash collection
• Reserve funds for major repairs

It's essential to check whether the reserve fund is sufficient. If major repairs like roofing or plumbing are needed and the reserve is low, residents may suddenly face special assessments. This risk applies to both condos and townhomes. It's safer to request the HOA financial statements and reserve study before signing a contract to see how much reserve has actually been accumulated.

If you are obtaining a mortgage, it's good to know that the financial health of the HOA will also be evaluated. Buildings with high delinquency rates or low reserve ratios, or those involved in ongoing litigation, may be classified as non-warrantable condos, making loan conditions stricter.

If you are looking at preferred school districts for Korean families in Denver, consider comparing school ratings alongside HOA regulations. School district boundaries change frequently, so it's advisable to verify the assigned school for the specific address before purchasing. If you are moving to Denver from another state, keep in mind that property tax and insurance calculation methods may differ from your previous state.

For investors expecting rental income, it's worth considering whether downtown condos or suburban townhomes are more favorable in terms of rental demand and management fee burden. Downtown condos tend to have steady rental demand, but their high management fees can lower net yields, while suburban townhomes often have lower fees but may also have lower rental rates. In either case, it's safer to conservatively calculate potential rental income by factoring in vacancy periods and the possibility of fee increases.

If you are moving from Korea and looking for your first condo, it's advisable to ensure you have time to review the HOA documents during the final stages before closing. By examining not only the financial statements but also the recent board meeting minutes, you can get a sense of any upcoming construction or discussions about fee increases. If you are looking for a condo in downtown Denver, conducting this document review alongside school district verification can save you time.

This article is not investment or legal advice, and it is recommended to consult with a professional before making any actual contracts.