You’ve spent a couple hours looking at various real estate Web sites and have narrowed down your favorites for this weekend’s open house tour.
In the end, half of those units have HOA dues that are well above what you can afford, and another has pet restrictions that won’t accommodate your two yellow Labs.
Knowing the fundamentals about a condo and its HOA can save you time when it comes to targeting your search. Here are my top five deal breakers to help you narrow down your prospects. Because let’s face it, you can only see so many homes between 2:00 – 4:00 on a Sunday:
1. HOA dues. This is a set amount of money paid monthly to the homeowners association. Dues typically help to cover costs such as building insurance, grounds maintenance, water, trash and property management. (They also sometimes cover earthquake insurance, but that’s another story.) The more amenities a building provides, the higher your dues will be. A South Beach high-rise with a fitness center, pool, and 24-hour doorman, for example, will have far higher HOA dues than that four-unit NOPA Edwardian. These days, however, buildings without amenities can also carry high HOA dues just because insurance, utilities and other costs have been steadily rising over the past few years. Read the fine print, and if the dues exceed your budget, move on to the next property.
2. Pet restrictions. I’ve come across some interesting pet limitations over the years while searching for properties for my clients. One Pacific Heights condo building I checked out had a no-pets policy, another building in which I had a past listing had a no-dogs policy. The most common pet policy in the San Francisco condo world is a two-dog or two-cat maximum. But you will often find weight restrictions, and in some cases, breed restrictions.
3. Rental restrictions. You may be intending to live in your condo for several years, but you might also eventually need a bigger space. And you may want to rent out that condo for additional income down the line. If that option is a must, it’s good to know up front whether there are any restrictions on renting your unit. One Nob Hill property that I visited for an investor client imposed a limit on the number of units that could be rented at one time; my client ended up passing because the ability to rent wasn’t a guarantee at the time he’d want to do so.
4. Outdoor space. If you absolutely need a garden or at least a deck, make sure the listing photos include photos of those things. Outdoor space of any kind in a condo is a real selling point, and listing agents usually don’t miss the opportunity to show it if their condo has it.
5. Parking. Yes, the listing details note that parking is included. But is it deeded or exclusive-use—or leased a block away for $300/month? Is the parking tandem, meaning you may have to move your neighbor’s car in and out of the garage on a regular basis? Know your limitations, and if independent parking isn’t negotiable, skip the condos that specify anything less than that.