There is a case of a Cleveland condo owner receiving a monthly management fee bill of $622. The median condo management fee in Ohio is around $368 per month, but the average in Cleveland is significantly higher at $622 (HOA Costs data, 33 samples). It is important to understand where this gap comes from.

The prices of condos in Cleveland are relatively low. As of June 2026, the median sale price for condos/co-ops is $148,169, which is a 10.7% increase from the previous year (Redfin). While the low listing prices may create an illusion of a larger proportion of management fees, in reality, Cleveland has a high percentage of older buildings, which contributes to higher absolute amounts.

High management fees can be interpreted in two ways. One is that the management association is diligently building its reserve fund, and the other is that the fees have increased due to the repayment of already incurred special assessments. Recent market trends show that rising reinsurance costs and litigation risks are causing condo insurance premiums to increase nationwide, which often contributes to higher management fees (iii.org).

The Ohio Condominium Law (ORC 5311) requires management associations to reflect reserves in their budgets. However, members can vote annually to defer reserve contributions at the general assembly, so if a building has repeated deferrals, it may appear to have low management fees but could face significant special assessments later.

The items to check in order are as follows: first, the history and reasons for recent management fee increases; second, whether there have been votes to defer reserve fund contributions; and third, any planned major repair projects. By requesting financial statements and meeting minutes from the management association, most of these can be verified.

According to Fannie Mae, if the reserve fund is less than 10% of the budget, it may be classified as a non-warrantable condo, which can lead to unfavorable loan conditions (Fannie Mae Selling Guide). While high management fees are not necessarily a reason to avoid a property, it is essential to verify whether those fees are actually contributing to the reserve.

To summarize the items to check:

• Recent 3-year management fee increase rates and reasons
• History of votes to defer reserve fund contributions
• Planned major repair projects
• Litigation or disputes noted in management meeting minutes
• Pre-check for warrantability

When moving to Cleveland from another state, it is important to consider that property tax and insurance systems may differ from your previous residence. Especially considering that condo insurance premiums have been rising nationwide due to increased reinsurance costs and litigation risks in recent years, it may be helpful to ask the management association how much of the management fee bill reflects insurance premium increases. For families that prioritize school districts, it is advisable to check the assigned schools using GreatSchools ratings.

From an investment perspective, the stable rental demand compared to low sale prices is seen as an advantage. However, since there are many older buildings, it is also wise to check for recent roof or plumbing work when viewing properties. Buildings that have established maintenance plans tend to have a lower risk of future special assessments.

Comparing to nearby suburban areas like Cleveland Heights, condos closer to the city tend to have higher management fees but more stable rental demand. As you move to the suburbs, management fees decrease, but securing tenants may take longer, so it is advisable to consider both conditions together.

Requesting specific management fee increase rates for the last three years from the management association is also a good approach. If the fees have gradually increased by around 5% each year, it is within a predictable range, but if there was a sharp increase in a specific year, it is essential to inquire about the reasons behind it.

Cleveland has a low entry barrier due to its low sale prices. However, if you do not consider both management fees and reserve structures, the advantages of low sale prices may be offset by management fees. This article is intended for general informational purposes, and it is recommended to consult with real estate professionals and loan officers before making any actual contracts.