It's common to see people deliberating between two condos in Lansdale. The listing prices may be similar, but the monthly management fees can differ by over $100. While the lower fee might seem advantageous, it's essential to first understand where that difference comes from to make a true comparison.

Since Lansdale is a small market, looking at data from the nearby Philadelphia metro area can be helpful. The median monthly HOA management fee across the metro is $215, which is an increase from $199 in 2024 (Axios Philadelphia, 2026 data). The average for the entire state of Pennsylvania is around $150 per month. In suburban areas like Lansdale in Montgomery County, variations often occur based on the size of the complex and the level of amenities.

A lower management fee is not always a positive sign. While it may seem beneficial, there could be aspects that become burdensome. For instance, a complex with lower fees might have less money set aside in a reserve fund, which could lead to special assessments being charged all at once when repairs like roofing or plumbing are needed. Conversely, a complex with higher fees may present a larger immediate burden but could have a stable reserve fund, leading to more predictable long-term expenses.

There are three main items to check in order: first, the balance of the reserve fund and whether a recent reserve study has been conducted. Pennsylvania does not have laws mandating reserve studies or contributions, so the level of management can vary significantly based on the board's judgment and discretion. Second, review the history of special assessments over the past five years. Third, check the HOA delinquency rate and any ongoing lawsuits.

The third item is directly related to mortgage approval. Lenders will assess the HOA's delinquency rate, reserve fund ratio, lawsuit status, and commercial space ratio when reviewing a condo purchase. If these criteria are not met, the condo may be classified as a non-warrantable condo, which could result in standard loan denial. There are cases where buyers get stuck at the loan approval stage after only comparing listing prices and management fees.

It's also important to consider school district information. The North Penn school district, which includes Lansdale, is known to be of interest among Korean families, but even within Lansdale, the assigned schools can vary based on the location of the condo complex. While it's good to refer to ratings from GreatSchools or Niche, remember that school district boundaries change frequently, so be sure to verify the assigned school based on the property address.

For investors looking for rental income, it may be necessary to prioritize rental restriction clauses over management fees. Some complexes impose limits on the percentage of units that can be rented, and hitting that cap could prevent a purchase altogether. Complexes that are subject to rental restrictions are often classified as non-warrantable condos during mortgage lender reviews (according to Fannie Mae condo project guidelines), making it just as important to check rental restriction clauses as it is to review management fees.

It's also worth checking the history of management fee increases. By looking at how much fees have risen over the past 3-5 years, you can get a sense of whether the board has been proactively building the reserve fund or if they are raising fees late to catch up. Generally, a complex with gradually increasing fees is likely to have more stable financial management than one with sudden spikes.

Additionally, review the HOA regulations (CCRs, bylaws) regarding pet restrictions, rental limitations, and renovation approval processes. For families moving from out of state, consider that Pennsylvania's property tax and insurance structures may differ from those of your previous residence. Instead of merely comparing listing prices and monthly management fees side by side, taking a closer look at what those fees are used for can lead to a more balanced judgment. This article is not investment or legal advice, and consulting a professional before making any contracts is recommended.