No condo fee has ever had profit built into it. No one ‘owns’ a condo besides the individual owners who are the ones who set the condo fees. Condominiums are non-profit organizations. There are a lot of misconceptions out there about condos and this is one of the biggest ones. If you are curious about where your money goes when it comes to your condominium, look at the financial statements. Any owner may look at the financial statements. If you do, you will be able to see what all the money is spent on. It will be things like heat, water, management, lawn care and exterior maintenance. There is always a portion that goes to what is called a ‘reserve fund’ as well. That fund is there for big purchases like a new elevator or a roof or windows. None of this money goes into anyone’s pocket as profit.
A professional management company is paid through condo fees – but they do not own the condominium, they just getpaid to help run it. Just like a plumber or electrician would be paid by the condo to do repairs, the management company is paid for what they do. This payment does not constitute a profit.
Board members do not profit from condo fees either. Most condo board members are strictly volunteer. There have been occasions where board members are paid an honorarium for helping to manage a condo – but it is not common. This possible remuneration is not a profit either.
by +Alan F Macdonald REALTOR® | Copyright © – gimme-shelter.com