In New York City, every building charges monthly fees, which can vary widely depending on the services provided. These fees cover costs such as staff salaries for doormen and cleaning personnel, maintenance of shared areas like lobbies, hallways, and gyms, the building’s property taxes (unless it's a condo), and its overall insurance plan, as well as the management fee paid to the building’s managing agent. Generally, the more services and amenities a building offers, the higher its monthly fees. All buildings include heat and water in their maintenance fees, and some may also cover electricity and cable.
Apartments on higher floors often have higher fees. These fees typically increase each year by about 2% to 3% to account for inflation and rising maintenance costs. However, since the COVID-19 pandemic, it has become more common to see annual increases of up to 5% as buildings face additional expenses. When assessing ongoing expenses, it’s important to consider that fees will likely continue to rise annually.
Occasionally, buildings face one-time major expenses, such as replacing an elevator, water tank, or boiler. To cover these costs, a capital assessment may be added temporarily to your monthly fees until the expense is paid off. The building’s board of directors determines the amount and duration of this assessment for each resident.
