TheTruth
BEHIND REGIME FEES R
BY STACY E. DOMINGO
egime fees, often no more than an afterthought when you are in the market for a condominium, townhouse or villa, can be an unpleasant a surprise when you go to close the deal. It is important to work with an experienced and knowledgeable agent so you will be prepared for the supplementary fees that might go along with ownership in a specific community. When you sign on the dotted line, in addition to monthly mortgage and insurance payments, you might find yourself responsible for regime fees or, as they are sometimes called, maintenance fees. Communities charge these fees to
pay for the maintenance of amenities and common areas. Amenities usually include pools, basketball and volleyball courts, lakes, clubhouses, golf courses and fitness centers. Maintenance typi- cally covers pest control, refuse pickup, landscaping, painting and general upkeep of the property. Throughout the Southeast, regime
or maintenance fees vary, depending on the type of buildings and, of course, their location. For example, in a small, rural Georgia town, the regime fee for a townhouse can run as little as $40 a month, rising to $550 monthly or more for a loft in downtown Charleston, South Carolina. That’s a difference of more than $6,000 a year – something to keep in mind when purchasing a condo. “Our regime fees are actually low
for the area,” says Tyler Cooper, broker for InterCoast Properties in Charles- ton, adding that renovations of the
Davidson Lofts included a firewall and sprinklers, which lowered insurance premiums. Although owners are responsible
for insurance inside their homes, the cost of the insurance on the exterior is split among the inhabitants. Quality construction helps reduce insurance premiums, in turn lowering monthly regime fees. “People are only willing to pay so
much for insurance,” Cooper explains. “Luckily, for people everywhere across the Southeast, the fees have settled since the spike after Hurricane Katrina.” Regime fees can rise after you pur-
chase a unit, but that usually doesn’t happen unless a board made up of people who own condos or townhomes in the community presents compelling reasons for the increase. For instance, a community in Florida recently dis- covered structural problems on several buildings but did not have the money to make the repairs. One solution was
Photo: Cour tesy of Davidson Lofts
an assessment that would hike regime fees by several hundred dollars a month. When shopping for a condo or
townhome, you should be aware that sellers, representatives of the home- owners’ association and management companies are not required to disclose information regarding the possibility of an upcoming assessment. Your best option is to learn as much as you can about the history of regime fees and assessments in the community and, if possible, to speak with several current owners in addition to the seller. While there are a few horror stories,
most regime fees are necessary so the residents of a community will be able to enjoy its amenities and common areas.
Mi l l ionDol larReal tor s . com | Char les tonBui lder s . com | Ret i r ingToChar les ton. com 47
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