Even within Burlington, the management fee structures differ between elevator buildings near downtown Church Street and smaller town-style condos in the suburbs. Newer or remodeled buildings tend to have higher management fees, but they often have more substantial reserve funds. In contrast, older small buildings may have lower management fees but carry a higher risk of special assessments when significant repairs are needed. Comparing the two side by side makes it clearer what to prioritize when choosing a condo.

In the Burlington area, condo management fees range widely from $200 to $700 per month, depending on the listing. For instance, one condo complex has a monthly fee of $570.45, which includes heating, cooling, hot water, landscaping, snow removal, sewage, garbage collection, and water. Vermont has long winters with heavy snowfall, so it's common for snow removal and heating costs to be fully included in the management fees, which is one reason they may seem higher compared to condos in milder areas.

If you have the same budget, it's important to evaluate which type of building is actually more affordable: one with utilities included in the management fee or one that requires separate payments. While a building with utilities included may appear more expensive based solely on the management fee, adding the winter heating costs for a separately billed building can change the ranking.

The state of Vermont does not legally require condo associations to have reserve studies or minimum reserve balances. For new communities, developers are only required to disclose whether reserve items are included in the budget or not. This is based on Vermont Condo Law Section 27A. Due to the lack of legal requirements, each association has different rules regarding reserve accumulation, and older buildings may have thinner reserve funds, which should be kept in mind.

If major repairs like roofs, boilers, or plumbing are needed when the reserve fund is low, it can lead to special assessments of thousands of dollars charged to all residents at once. Before signing a contract, check the financial statements from recent years, the reserve fund balance, the history of special assessments, and how the reserve accumulation regulations are outlined in the bylaws. When obtaining a conventional loan from a bank, the association's delinquency rate, reserve status, and any lawsuits are also reviewed, so an association with poor financial health may be classified as a non-warrantable condo, potentially blocking the loan.

Burlington has several small complexes that have converted old wooden houses or factory buildings into condos. While they may appear charming and quaint, these buildings often fall short of modern standards for insulation or plumbing, so it's essential to closely examine whether the reserve fund is sufficient. If considering rental income, check if the association's bylaws include rental restrictions or minimum rental period clauses, as smaller associations may not have these regulations formally documented and may operate at the discretion of the board, making it safer to inquire directly and obtain written responses before purchasing.

Reviewing the minutes from the association board meetings can also be helpful. You can often find out if there are significant upcoming expenses, such as roof or boiler replacements, or if budget proposals have been voted down by residents. Winter heating system failures can lead to sudden expenses, so it's advisable to ask about the history of boiler or heating system replacements as well.

For families moving to Burlington from other states, it's important to note that property tax and insurance assessment criteria may differ from their previous residence. If a Korean family is considering school districts, they should refer to GreatSchools ratings, but since school district boundaries change frequently, it's advisable to verify the assigned school for the specific address before purchasing. This article is not investment or legal advice, and consulting a professional before making any contracts is recommended.