There was a first-time condo buyer. They were about to sign the contract just looking at the sale price. The agent suggested checking the management fee statement again. When they opened the statement, they found that the water bill was included in the management fees. A cost they thought was separate was already part of the management fees. Such misunderstandings are common.

The items included in the management fees are set. Building exterior and roof maintenance. Master insurance. Common area management. Landscaping. Trash collection. Sometimes utilities like water or heating. And reserves. All these items are included in the management fees. Since the scope of inclusion varies by property, it is necessary to check the statement directly.

The median monthly HOA fee in Los Angeles County, where West Covina is located, is $413. Looking at the entire Los Angeles area, the average for condos is around $340 to $388. Individual complexes in West Covina seem to fall within and around this range. The more amenities there are, the higher the management fees will be.

While low management fees can be reassuring, it is also important to check the reserves. If reserves are insufficient, special assessments may arise when repairs to the roof or plumbing are needed. California manages this under the Davis-Stirling Act. Associations with major asset values exceeding half of the budget must conduct a reserve study, including on-site inspections, at least every three years. With the 2025 SB 900 amendment, gas, water, and electrical infrastructure are also included in the inspection targets. Requesting this information before signing a contract is the proper course of action.

Condominiums near school districts preferred by Korean families tend to have somewhat higher management fees. School district ratings can be referenced on GreatSchools or Niche. However, boundaries change frequently. It is advisable to check the assigned school for the specific address before purchasing. If the investment is for rental purposes, management fees should be included in the rental yield calculations.

If moving from another state, judging based on the previous residence can lead to discrepancies. Property tax and insurance structures vary by region. Mortgage lenders also review the HOA. They look at delinquency rates, reserve ratios, litigation status, and the proportion of commercial space. If the criteria are not met, it may be classified as a non-warrantable condo, and the loan could be denied.

West Covina and the San Gabriel Valley area have many mid-rise condos built in the 1970s and 1980s. Recently constructed complexes are rare. Given the age of the buildings, some may be approaching the time for roof or plumbing replacements. The lower the management fees are maintained, the more carefully this aspect should be examined. Conversely, complexes that have recently completed renovations may have seen an increase in management fees. It is also important to check whether renovation costs have already been collected as special assessments or if they are planned for the future. It is helpful to look at recent transaction records of other units in the same complex, not just one listing. There is not much difference when compared to neighboring cities like Covina or Baldwin Park. The management fee structures are generally similar, but variations by complex can be significant.

For investors looking for rental income, management fees should be included in the rental yield calculations. If there are vacancies, the owner will still bear the management fees. This aspect must be reflected in the pre-purchase simulation.

If you are moving from another state and purchasing your first condo, it is advisable not to rush. Instead of focusing on one listing for a long time, it is better to compare the management fee statements of several complexes side by side. What is included and what is excluded ultimately determines the actual burden.

Items to check before signing a contract include:

• Items included in the management fees and the scope of utilities
• Recent reserve study results and reserve ratios
• History of special assessments in the last 5 years
• HOA delinquency rates and litigation status

Do not just look at the sale price; also review the management fee statement. This is a step that first-time condo buyers often overlook. This article is not investment or legal advice, and it is recommended to consult a real estate professional before finalizing any contracts.