Let's follow the story of a family weighing two condos in Columbus. One has a relatively low purchase price but a monthly management fee close to $400, while the other has a slightly higher purchase price but a management fee around $150. At first glance, the first option seems advantageous based solely on the purchase price, but the story changes when you calculate over a 30-year loan period.

The management fees for Columbus condos range from as low as $100 to over $400, depending on the listing (according to steadly.com). Across Georgia, the average condo management fee is $295, with most falling between $200 and $400 (according to hoamemberservices.com). The wide range itself illustrates a characteristic of the Columbus condo market, where older low-rise buildings mix with relatively new managed communities, leading to significant differences in monthly expenses based on the building chosen, even with the same budget.

A lower management fee isn't always better. Management fees cover maintenance of the building's exterior and roof, master insurance, common area management, landscaping, trash collection, and reserve funds. Some buildings with lower fees may not have adequately built up their reserve funds. In such cases, while the immediate burden may seem lighter, a significant repair, like for the roof or plumbing, could result in a large special assessment being charged all at once. Conversely, buildings with higher management fees may have already accounted for these reserves, potentially leading to a more predictable expenditure structure in the long run.

The Georgia Condominium Act requires associations to maintain replacement reserves, but it does not legally mandate specific reserve ratios or regular reserve studies (according to propfusion.com). However, it does require that resale disclosures include projected operating budgets and reserve fund items, allowing buyers to gauge the financial status of the association if they request these documents.

Another feature of the Columbus condo market is the increase in loft-style condos that have been renovated from older buildings alongside the downtown riverfront redevelopment. While these buildings may appear old on the outside, some have undergone interior remodeling and financial restructuring of the association, while others have maintained low management fees without any updates. It can be difficult to distinguish between the two types based solely on appearance, so ultimately, reviewing the financial statements is necessary to determine which is which.

When comparing the two properties before making a contract, consider the following items:

• Recent financial statements and reserve study status
• Reserve fund balance and annual reserve plan
• Delinquency rates and any lawsuits
• Rental restrictions and pet policies
• Commercial space ratio and building age

These items are also tied to mortgage assessments. Lenders will evaluate the financial health of the association, and if the delinquency rate is high, reserves are low, or there are ongoing lawsuits, the property may be classified as a non-warrantable condo, making loan conditions more stringent (according to fanniemae.com condo project standards). Ultimately, a property with a low purchase price and low management fees is not always advantageous, and a property with a slightly higher purchase price but a solid management fee structure may be a more stable long-term choice.

Families moving to Columbus from other states should also consider that property tax and insurance rates may differ from their previous residence. By comparing purchase prices, management fees, and the status of reserve funds in a single table, it becomes clearer which property is truly advantageous.

Tax and management fee regulations can vary by county, so be sure to check the latest financial documents of the association before making a purchase. This article is not investment or legal advice, and it is recommended to consult a real estate professional before finalizing any contracts.