Recently, a friend of mine contacted me after signing a contract for a condo in downtown Concord and receiving their first management fee bill. They were surprised that the actual amount charged was significantly higher than what was advertised, and they asked me to check where the discrepancy was. Upon review, I found that the bill itself was normal, and the numbers in the advertisement were based on figures from several years ago. Looking at the recent market, it is clear that HOA management fees are rising slightly each year due to increases in insurance costs and labor expenses.

There are three main items to check before signing a condo contract. First, what is actually included in the management fees; second, how much is accumulated in the reserve fund; and third, whether there have been any special assessments in recent years. Management fees typically include maintenance of the building's exterior, master insurance, management of common facilities, landscaping, garbage collection, and sometimes a portion of utilities like water or heating, as well as contributions to the reserve fund. The national average ranges from $200 to $400 per month, and buildings with more amenities can see fees rise to $500 or more, even exceeding $1,000.

According to RSA 356-B in New Hampshire, HOA boards are required to include reserve items in their annual budget and to provide a summary of the budget to all residents within 30 days. However, there are no specific ratios mandated for how much should be accumulated in the reserve fund, nor is conducting a reserve study required. This means that while reserve items exist on paper, whether the amounts are actually sufficient is a separate issue. Fannie Mae and Freddie Mac often require that at least 10 percent of the budget be allocated to the reserve fund as a condition for loan approval, so buildings that fall significantly short of this ratio may face stricter lending conditions.

In areas like Concord, where there are many small to medium-sized condo complexes, the age of the building often directly correlates with management fees. Older buildings tend to face increased pressure on the reserve fund for roof or plumbing replacements, which can lead to higher management fees or special assessments.

• Items included in management fees and their increase history over the last three years
• Balance of the reserve fund and allocation ratio compared to the budget
• Whether there have been recent special assessments and their reasons
• Age of the building and history of major equipment replacements
• Rental restrictions and pet policies

The school districts that Korean families are interested in around Concord generally fall to the south of downtown and towards Bedford. While the school district ratings can be referenced through GreatSchools or Niche, it's important to verify which school the address being considered for purchase is actually assigned to, as district boundaries can change frequently. For investors looking at condos for rental income, it's advisable to calculate the proportion of management fees in relation to the rental yield, as these fees are a fixed monthly expense. Families moving from Massachusetts or other New England areas should also be aware that property tax assessment methods and insurance structures may differ from their previous residences. Since this market does not guarantee specific yields, it is more beneficial to consider both management fees and the status of the reserve fund in practice.

Another item to check is how long the management company has been overseeing the complex. Properties with frequently changing management companies may have financial records that are not smoothly connected, and requesting the minutes from recent board meetings can give insight into whether there have been discussions about special assessments. When viewing properties, it's helpful to request the recent budget summary along with the management fee bill to avoid wasting time searching for documents during the closing process.

If you are moving to New Hampshire from another state, be sure to also consider that the property tax and insurance systems may differ from your previous residence. Ultimately, reviewing documents before signing is the most reliable way to avoid being surprised by management fee bills. This article does not constitute investment or legal advice, and it is recommended to consult with a real estate professional and attorney before finalizing any contracts.