Staring at two similar SoHo lofts with very different monthly fees? You are not alone. In New York City, co-op “maintenance” and condo “common charges” look similar on paper but cover different things, which can change your true monthly cost. In this guide, you will learn what each fee includes, how taxes are handled, and what to check before you buy or sell in SoHo. Let’s dive in.
Maintenance vs common charges: quick definitions
Co-op maintenance is the monthly fee paid by shareholders in a cooperative. It typically covers building operations, the building’s real estate taxes, and sometimes payments on the co-op’s underlying mortgage.
Condo common charges are the monthly fees paid by condominium owners for shared building expenses and services. These fees usually do not include your unit’s real estate taxes, which you pay directly to the city.
The difference comes from ownership structure, not neighborhood. In SoHo you will see co-ops, condos, condops, and hybrid setups, but the fees follow the same co-op vs condo rules.
What co-op maintenance typically includes
Co-op maintenance often bundles several major costs into one monthly line item:
- Building operations: staff, management, insurance, and utilities for common areas.
- Real estate taxes: the co-op corporation pays property taxes, and your share is included in maintenance.
- Underlying mortgage: if the co-op has a building-level mortgage, portions of principal and interest are included.
- Reserves and assessments: contributions to reserves; special assessments may be billed separately for projects.
- Some utilities: heat or hot water can be included depending on the building.
- Services or parking: if owned by the corporation, some services may be bundled.
What condo common charges typically include
Condo common charges are focused on shared operations and amenities:
- Building operations: staff, maintenance, insurance, and utilities for common areas.
- Management and reserve contributions.
- Amenities: gyms, doormen, pools, or other services where applicable.
Key difference: your real estate taxes are not in common charges. As a condo owner, you receive and pay your own tax bill separately. Your personal mortgage is also separate from common charges.
Line items that can vary by building
- Real estate taxes: included in co-op maintenance; billed directly to condo owners.
- Mortgage interest: co-ops may include a share of the building’s mortgage; condos do not.
- Utilities: either structure may include heat or hot water. Always verify what is included.
- Parking, storage, cable, internet: sometimes included, sometimes optional and billed separately.
- Special assessments: both co-ops and condos can levy assessments for capital projects or unexpected costs.
SoHo-specific factors that influence fees
SoHo is known for cast-iron loft conversions and boutique buildings. These features shape monthly costs:
- Loft conversions: larger floorplates and mechanical systems can increase heating and elevator expenses, impacting fees.
- Amenity levels: many SoHo buildings are low-amenity, which keeps fees lean. Others offer doormen, gyms, or parking, which raise monthly costs.
- Co-op vs condo optics: co-op maintenance can look higher because taxes and sometimes an underlying mortgage are bundled. Condos may show lower common charges, but your separate tax bill still affects total carry.
- Historic status: buildings in the SoHo Cast-Iron Historic District may face higher capital repair costs and specialized approvals, which influence reserves and potential assessments.
- Investor and pied-a-terre demand: subletting policies and short-term rental rules vary by building and can affect carrying costs and underwriting.
How to compare monthly costs in SoHo
To compare a co-op and a condo accurately, put all recurring costs on one sheet:
- For a co-op: maintenance plus your personal mortgage and any separately billed utilities or services.
- For a condo: common charges, your personal mortgage, your unit’s real estate taxes, and separately billed utilities.
Then add potential assessments and amenity fees. This creates an apples-to-apples view of true monthly carry.
Buyer due diligence: documents to request
For co-ops:
- Proprietary lease, house rules, by-laws, and latest financial statements.
- Year-end audit and CPA letter; reserve fund size; assessment history.
- Confirmation of what maintenance includes, including underlying mortgage and taxes.
- Flip tax policy, sublet policy, board approval process, and any minimum liquidity or income ratios.
For condos:
- Offering plan (for recent conversions), declaration, bylaws, budget, and reserve study.
- How real estate taxes are assessed and paid for your unit.
- Rules on subletting, short-term rentals, pets, and renovations.
- Any pending assessments, capital projects, or litigation.
For both:
- Last 12 to 24 months of maintenance/common charge invoices and the current budget.
- Recent board minutes for upcoming projects, assessments, and policy changes.
- Reserve fund balance and the most recent reserve or capital needs study.
- Five to ten years of assessment history, plus any pending assessments.
- Property tax bills and payment history.
- Department of Buildings records for violations or major work.
Seller prep: explain fees clearly
If you are selling in SoHo, be ready to show what your fee covers:
- Co-op example: “Maintenance includes building operations, real estate taxes, and heat.”
- Condo example: “Common charges cover building operations; owner pays unit taxes separately.”
Provide recent financials and any board communications about capital projects or assessments. Clear, upfront details help buyers and lenders underwrite and reduce back-and-forth.
Financing and underwriting impacts
Lenders underwrite co-ops and condos differently. Co-op financing often puts more weight on the building’s financials and the board process, while condos are typically underwritten against the unit and borrower.
Monthly fees affect debt-to-income ratios in both cases. Because co-op maintenance can include the building’s mortgage and taxes, lenders may treat it differently in ratios. If you plan to use a guarantor, confirm co-op policies early.
Taxes and accounting: what to know
The key tax difference is where and how property taxes are paid:
- Co-ops: the co-op corporation pays property taxes and maintenance includes your share. Shareholders may receive statements that break out their portion of taxes and mortgage interest paid by the corporation.
- Condos: you pay your unit’s property tax directly to the city and your mortgage interest separately.
Tax rules and deductibility can change. For questions about itemized deductions, special assessments, or capital improvements, speak with a qualified tax professional.
Red flags to watch for in SoHo buildings
- Low reserves relative to the building’s age and capital needs.
- Frequent or large special assessments without a long-term plan.
- High owner delinquency or late payments on fees.
- Active or unresolved building litigation.
- Major Department of Buildings violations or structural work without clear funding.
- Restrictive sublet policies that could impact resale or rental flexibility.
Key records and where to verify
When you focus on a specific SoHo building, verify details with primary sources and building documents. Ask your agent and attorney to help you review:
- NYC Department of Finance property tax bills and history.
- ACRIS for deeds and recorded documents.
- NYC Department of Buildings for permits, violations, and inspections.
- New York State Attorney General resources for offering plans and consumer guides.
- Building financials, proprietary lease or declaration, bylaws, house rules, board minutes, and reserve studies.
The bottom line for SoHo buyers and sellers
Co-op maintenance and condo common charges are not interchangeable. In SoHo, where loft conversions, boutique buildings, and historic facades are common, the way each fee is built can vary widely. If you compare them line by line, include taxes correctly, and review building reserves and assessment history, you can make a confident decision.
If you want a second set of eyes on a SoHo building’s financials, board minutes, and fee structure, reach out to the team that pairs board-savvy expertise with modern, data-informed guidance. Get in touch with Unknown Company to start a focused review.
FAQs
What is the difference between co-op maintenance and condo common charges in SoHo?
- Co-op maintenance usually includes building operations, the co-op’s property taxes, and sometimes the underlying mortgage. Condo common charges cover shared operations and amenities, while you pay your unit’s taxes separately.
Why do co-op maintenance fees look higher than condo fees?
- Co-op maintenance often bundles taxes and a building mortgage into one payment, while condo owners pay taxes directly in addition to common charges.
Are co-op maintenance payments tax-deductible?
- Portions attributable to property taxes and mortgage interest paid by the cooperative may be deductible in some cases. Rules change, so consult a tax professional.
Do SoHo lofts have higher monthly charges?
- Some loft conversions and large units can have higher heating and elevator costs, which can increase monthly fees. Always review the specific building’s budget and utilities.
How do special assessments work in co-ops and condos?
- Both can levy special assessments for capital projects or unexpected costs. Check the assessment history, reserve study, and board minutes to understand risk.
What should I review before buying in a SoHo co-op or condo?
- Review building financials, reserve levels, board minutes, assessment history, rules on subletting and renovations, and your true monthly carry including taxes and utilities.
What is a flip tax and who pays it?
- A flip tax is a fee some buildings charge on a sale or transfer. Who pays and how it is calculated depends on the building’s governing documents.
