June 26, 2026
Condo common charges cover the building's shared operating costs, things like staff salaries, utilities for common areas, building insurance, and contributions to the reserve fund. What common charges do not include is property taxes. As a condo owner, you'll get a separate property tax bill directly from the city for your specific unit, completely apart from your monthly common charges.
Co-op maintenance fees, on the other hand, bundle your share of the building's property taxes right into your monthly bill. There's no separate tax bill from the city. Instead, the co-op corporation pays one blanket property tax for the entire building, and your monthly maintenance includes your prorated share of that bill, along with your share of operating expenses and, in many buildings, a piece of an underlying mortgage on the building itself.
A condo with $800 a month in common charges can look like a clear winner over a co-op charging $2,000 a month in maintenance. But that comparison is incomplete. Once you add the condo owner's separate property tax bill, which might run $1,200 a month on top of those common charges, the total monthly carrying cost between the two properties can end up nearly identical.
The honest way to compare a condo and a co-op is to add up everything you'll actually pay each month: common charges plus property taxes for the condo, versus all-in maintenance for the co-op. Anything short of that comparison isn't telling you the real story.
Generally speaking, both common charges and maintenance fees cover similar ground:
Co-op maintenance adds two things condo common charges typically don't carry: your share of the building's property taxes, and if applicable, your share of payments toward any underlying mortgage the co-op corporation holds on the building.
A lot of factors drive this. Generally, the more units and amenities a building has, the higher the monthly costs tend to run. A full-service building with a doorman, concierge, gym, and pool will almost always carry higher monthlies than a small, no-frills building, regardless of whether it's a co-op or condo.
Unit size matters too. Within the same building, larger apartments typically shoulder a larger share of the building's total expenses. And building age plays a role as well. Many older prewar co-ops come with higher maintenance because of ongoing repair needs, even though the per-square-foot price tag on the apartment itself might be lower than a comparable new condo.
One more wrinkle specific to condos: some buildings were given tax abatements years ago as a development incentive, and those savings got passed down to owners as lower common charges. The catch is that most of these abatements have expiration dates, and once they expire, the building's effective costs jump, sometimes significantly.
Disclaimer: This content is intended for informational and educational purposes only and is not intended to be construed as legal, tax, financial, or insurance advice. Every property and tax situation is unique. Please consult a licensed attorney, CPA, or tax professional regarding your specific circumstances before making any decisions related to property improvements, tax assessments, or real estate transactions. Mohammed M. Rahman is a licensed real estate broker in New York. Contact: Mo@ClosedByMo.com.
