A recent client I consulted with discovered the rental restrictions of their building only after signing a contract for a condo. They intended to purchase it for investment purposes and rent it out, but found out that the rental cap for the entire building had already been reached, requiring them to be placed on a waiting list. Such situations are not uncommon for those looking for condos in Colorado Springs. If you do not check the regulations set by the HOA, or Homeowners Association, before signing the contract, you may encounter issues like this.

Buying a condo is different from purchasing a single-family home. The building's exterior, roof, hallways, and shared facilities like pools or gyms are not individually owned but are managed collectively by all residents. The costs for this management are covered by the HOA fees. If the term is unfamiliar, think of it as similar to apartment management fees in Korea, but in the U.S., it often includes master insurance premiums and reserve funds as well.

So, how much are HOA fees in Colorado Springs? Looking at the entire state of Colorado, the average HOA fee for condos is around $475 per month (as of January 2026, according to Realtor.com). When examining listings specifically in Colorado Springs, many are found to be between $265 and $345, which is lower than the state average. However, there is also data indicating that the overall average for HOA fees in Colorado, including single-family homes, is about $268 per month (based on 5,868 reports from hoacosts.com), so condos are likely to be higher than this average.

To clarify exactly where these management fees are allocated, consider the following:

• Maintenance of shared structures like the building's exterior and roof
• Master insurance (insurance covering the entire building)
• Management of shared facilities like pools, gyms, and lobbies
• Lawn care and trash collection
• Reserve fund for future major repairs

The most important point to highlight here is the reserve fund. If this fund is not sufficiently built up, residents may suddenly face special assessments when repairs like roof replacements or plumbing changes are needed. It is not uncommon for thousands of dollars to be billed at once. Colorado does not yet have regulations like Florida that mandate reserve fund contributions by law. In simpler terms, how much reserve is maintained is left to the discretion of each HOA board. Therefore, it becomes even more crucial to request and review the HOA's financial statements and reserve study before signing a contract.

If you plan to obtain a mortgage, it is good to know that this aspect is also connected to loan approval. Lenders review the HOA's delinquency rates, reserve fund ratios, litigation status, and the proportion of commercial space, and if they fall short of criteria, the property may be classified as a non-warrantable condo, leading to loan denial or stricter conditions.

If you are a family looking for condos in preferred school districts, be sure to check the rental restrictions, pet policies, and renovation limitations in the CC&Rs and bylaws along with the school district ratings. School district boundaries change frequently, so it is also important to verify the assigned school for the address before purchasing.

If you are moving to Colorado Springs from another state, there are aspects that can be easily overlooked if judged by the standards of your previous state. Since property tax rates and insurance calculation methods vary by state, it is essential to include not only HOA fees but also property taxes and insurance in your budget calculations to ensure a stable home purchase.

For investors looking for condos with rental income potential, it is also necessary to consider that HOA fees directly impact rental yield. When recalculating yield based on net income after deducting HOA fees, property taxes, and insurance from the rent, the results often come out lower than initially expected. While Colorado Springs has a steady rental demand due to frequent military relocations, if the building has rental restrictions, it may be challenging to capitalize on this demand.

If you have just immigrated from Korea and are looking for a condo as your first settlement, it is particularly important to keep in mind that HOA fees are a fixed monthly expense. If you only calculate the mortgage payment and overlook the HOA fees, the actual cost of living may become greater than anticipated. It is also a good idea to directly contact the HOA office or management company to inquire about any special assessments in the past year and any planned major repairs.

This article is not investment or legal advice, and it is recommended to consult with a real estate professional before making any contracts.