Sticker shock when two similar DUMBO condos have very different monthlies? You’re not alone. When you understand how common charges work, and how they relate to property taxes and amenities, you can compare buildings with confidence. This guide breaks down what common charges cover, why they vary across DUMBO, and how to evaluate the true monthly cost of ownership. Let’s dive in.
What condo common charges are
Common charges are the monthly fees you pay to your condominium association to operate and maintain the shared parts of the building. They fund staff, utilities for common areas, insurance on common elements, and day‑to‑day upkeep. These charges are separate from your unit’s expenses.
Common charges vs. property taxes
Common charges do not include or replace property taxes. In New York City, you pay property taxes on your individual condo unit based on its assessed value. The condo association’s budget and your tax bill are independent. When you compare total monthly costs, add your common charges and the monthly equivalent of your unit’s property taxes, plus any utilities and homeowner’s insurance that are not included.
What common charges cover
Common charges typically fund two buckets of expenses: operating costs and capital/reserve funding.
Operating costs you’ll see
- Building staff payroll and benefits, such as doormen, porters, super, concierge, or security.
- Property management fees for a professional management company.
- Utilities for common areas and sometimes for units if not separately metered. This can include heat, hot water, water, gas, electricity, and elevator power.
- Cleaning, janitorial, landscaping, and snow removal.
- Elevator, fire alarm, and life‑safety system maintenance and inspections.
- Trash removal and recycling.
- Master insurance for the building’s common elements and liability.
- Routine repairs and maintenance, including painting, plumbing in common areas, roof and façade upkeep.
- Administrative costs such as accounting, supplies, and small legal expenses.
- Amenity operations like gym equipment servicing, pool maintenance, and any organized building events.
Reserves and capital projects
- Reserve fund contributions to pay for big replacements later, such as roofs, facades, boilers, elevators, or major mechanicals.
- Planned capital projects, like window or lobby work.
- Special assessments, which are one‑time charges if the association needs extra funds for significant repairs.
Why DUMBO charges vary so much
DUMBO has a mix of warehouse conversions and newer luxury towers, so monthlies can range widely. The biggest drivers are:
- Staffing: No doorman or limited hours often means lower charges. A 24/7 concierge increases payroll significantly.
- Amenities: Pools, large gyms, roof decks, coworking lounges, and parking add ongoing operating and insurance costs.
- Building age and systems: Historic brick exteriors and older mechanicals may require more frequent capital work. Newer buildings can have lower near‑term capital needs but higher amenity and management costs.
- Parking and storage: These are often separate monthly fees that can meaningfully change your total cost.
How to compare buildings apples‑to‑apples
To make fair comparisons between DUMBO condos, standardize your math and your assumptions.
1) Normalize charges per square foot
Divide a unit’s monthly common charge by its interior square footage. This gives you a monthly cost per square foot that helps you compare buildings, especially for similar‑size homes.
2) Add monthly property taxes
Take the annual property tax bill for the unit and divide by 12. Add that to the common charges to create your baseline recurring monthly cost before utilities and insurance.
3) Adjust for included utilities and services
Confirm which utilities are included in common charges. If one building includes heat and hot water while another does not, add realistic estimates for those utilities to the second building so you’re comparing like for like. Do the same for separately billed parking or storage.
4) Consider reserves and assessment risk
Low common charges can be attractive, but if the reserve fund is thin and a building has deferred maintenance, the chance of a future special assessment is higher. Review the reserve balance, reserve study, and board minutes to gauge near‑term capital needs.
5) Use a simple total monthly formula
- Total monthly housing estimate = common charges + (annual property tax ÷ 12) + unit‑level utilities not included in common charges + monthly homeowner’s insurance + separate parking/storage fees.
Reserves, assessments, and the signals to watch
A healthy reserve fund helps a building handle major repairs without sudden spikes in owner costs. Best practice is a periodic reserve study by a third party that inventories major components, estimates remaining useful life, and recommends a funding plan.
What to request and review:
- Current reserve balance and the last 3–5 years of reserve contributions.
- The most recent reserve study and any engineer’s or capital plans.
- Minutes from recent board meetings that mention capital projects or potential assessments.
- History of special assessments over the last 5–10 years.
- Any open construction issues, litigation, or building envelope concerns.
Red flags to note:
- Very low reserves given the building’s age and systems.
- Repeated special assessments in recent years.
- High owner delinquencies on common charges.
- No recent reserve study or no plan for known capital work.
Due‑diligence checklist for DUMBO buyers
Documents to request:
- Current year condominium budget and the most recent year’s budget vs. actuals.
- Association balance sheet, including reserve fund and owner receivables.
- Most recent reserve study and any engineering or capital reports.
- Board meeting minutes from the last 12–24 months.
- List of planned capital projects and any bids or timelines.
- Schedule of monthly common charges and any unit‑specific fees or assessments.
- History of special assessments in the last 5–10 years.
- Management contract and management company details.
- Master insurance declarations page.
- Any litigation statements and current building rules and regulations.
Questions to ask:
- What is the current common‑charge delinquency rate and collection process?
- When was the last reserve study and when is the next one planned?
- Are capital projects or assessments anticipated in the next 2–5 years?
- Are utilities separately metered for each unit? Which are included in common charges?
- How have common charges changed over the last few years and why?
- Are key service contracts up for renewal that could change costs?
Common misconceptions to avoid
- “Common charges cover my property taxes.” They do not. Property taxes are paid separately by the unit owner.
- “Lower common charges always mean better value.” Not necessarily. Low charges may reflect fewer amenities or underfunded reserves.
- “Amenity‑rich buildings cost the same to run.” Amenities raise staffing, insurance, and maintenance costs, which show up in your monthlies.
Putting it together for DUMBO
In DUMBO, your monthly cost is shaped by staffing, amenities, and the building’s capital plan. If you standardize calculations, review reserves, and ask the right questions, you can compare loft conversions and luxury towers on equal footing. The right building is the one that fits your lifestyle and your total cost of ownership.
If you want a clear read on a specific building’s numbers or help modeling total monthlies across multiple options, the MINSKY | ABRISHAMI Team can help you benchmark, request the right documents, and negotiate with confidence.
FAQs
What do DUMBO condo common charges usually include?
- Common charges typically cover building staff, property management, common‑area utilities, master insurance, maintenance, cleaning, and amenity operations, plus contributions to reserves.
How are NYC condo property taxes paid by owners?
- Property taxes are billed based on your unit’s assessed value and are paid by you, not through common charges. Divide your annual tax by 12 to compare monthly costs.
Why are common charges higher in full‑service DUMBO buildings?
- Round‑the‑clock doorman or concierge staffing, multiple elevators, large gyms, pools, and roof decks increase payroll, utilities, insurance, and maintenance.
How can I tell if a building’s reserves are healthy?
- Review the reserve balance, recent reserve contributions, a current reserve study, board minutes, and the history of special assessments to gauge future risks.
What is a condo special assessment and when does it happen?
- A special assessment is a one‑time charge to fund major repairs or projects when operating budgets and reserves are not enough.
How do I compare two DUMBO condos with different amenities?
- Normalize common charges per square foot, add monthly property taxes, adjust for which utilities and services are included, and factor in reserve strength and assessment risk.
