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Who Pays Condo Fees In RTO`s?

ClintL

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Jul 30, 2011
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Just wondering, if a RTO deal involves a condo (or condo townhouse), who usually pays the monthly condo maintenance fees - the buyer/tenant or the investor?
 

Sherilynn

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Oct 22, 2007
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I write the cheque for condo fees but the rent covers that expense. I have a special RTO clause for condos that requires any special assessments to be paid by the tenant as well.
 

Thomas Beyer

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The tenant RENTS .. with an option to buy. She/he is not (yet) the owner. The owner pays for property taxes, condo fees, etc. ..
 

Sherilynn

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I agree, Thomas. That is why I pay the regular condo fees (they are still covered by the rent payment).



I pass along any special assessment expense because often a special assessment will go towards improvements to the complex, so the tenant-buyer will see the benefit of that improvement when they buy.



Also, our RTO clients in single family homes are responsible for repairs, maintenance, and improvements. I realize that this goes against the rules of a standard lease, but an RTO goes beyond a standard lease. Part of the intention of our program is to prepare clients for home ownership.



And frankly, if any of my clients had a problem paying a repair bill it simply means that I accepted the wrong client. If that happened, I would handle it on a case by case basis.
 
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