Shopping for an apartment in Manhattan and keep hearing “maintenance” and “common charges” used like they are the same thing? You are not alone. These two fees look similar on a listing, yet they work very differently once you own the home. Understanding the difference affects your monthly budget, your tax planning, and your mortgage approval.
This guide explains co-op maintenance versus condo common charges, how NYC property taxes flow in each, and how lenders count these costs in your debt-to-income ratio. You will also get a Manhattan-focused checklist you can use when you tour buildings. Let’s dive in.
Co-op maintenance vs. condo common charges
What co-op maintenance means
A co-op is a corporation that owns the building. You buy shares and receive a proprietary lease to your unit. Your monthly maintenance is your pro rata share of building expenses. It usually includes building real-estate taxes and, if the building has one, payments on an underlying building mortgage. You do not get a separate NYC property-tax bill for your unit.
What condo common charges mean
A condo is real property that you own. Your monthly common charge funds the condominium’s shared expenses. You also receive a separate NYC property-tax bill for your unit and pay your own mortgage principal and interest. The common charge does not include your unit’s taxes or your mortgage payment.
What your monthly fee usually covers
Co-op maintenance typically includes
- Building real-estate taxes allocated to shareholders
- Building mortgage principal and interest if an underlying mortgage exists
- Staff salaries and benefits for roles like doorman, super, and porter
- Common-area utilities and often apartment utilities if master-metered (heat, hot water, sometimes gas or electric)
- Building insurance and liability coverage for the structure
- Repairs, elevator service, routine maintenance, snow and garbage removal
- Management fees, bookkeeping, and reserve contributions
- Capital projects funded through reserves or special maintenance assessments
- Sometimes bulk services such as building-wide cable or Internet
Condo common charges typically include
- Building and common-area insurance and liability coverage
- Staff salaries and benefits if staffed
- Common-area utilities and upkeep for lobbies, hallways, elevators, landscaping
- Management and administrative costs
- Reserve contributions and routine capital maintenance
- Amenity upkeep such as gym, pool, or roof deck
- Cleaning, trash removal, and common-area security
- Not included: your unit’s property tax, your mortgage payment, and usually your unit utilities unless master-metered
How NYC property taxes flow
Condos: you pay the tax bill
As a condo owner, you receive a property-tax bill from the NYC Department of Finance. Your lender may escrow this, or you may pay it in periodic installments. For budgeting, lenders convert the annual bill to a monthly figure and include it in your housing payment calculations.
Co-ops: taxes are embedded in maintenance
In a co-op, the corporation pays the building’s tax bill. Your maintenance includes your share of that tax. You do not receive a separate city tax bill for your unit. From your perspective, your property-tax exposure is inside the maintenance number.
About tax deductions
Tax treatment can differ. Condo owners may deduct property taxes they pay, subject to federal limits. Co-op shareholders may be able to deduct the portion of maintenance attributable to building mortgage interest and real-estate taxes if the co-op provides the breakdown. Always consult your tax advisor for specifics.
How lenders count these costs in DTI
Condo DTI inputs
For condos, lenders include:
- Mortgage principal and interest
- Property taxes converted to a monthly number or escrowed amount
- Homeowner’s insurance
- Monthly condo common charges
Co-op DTI inputs
For co-ops, lenders include:
- Your monthly co-op maintenance as stated
- Your loan’s principal and interest if you finance the share purchase Because taxes are inside maintenance, lenders do not add a separate property-tax line on top of maintenance.
What lenders also review
Lenders look at the building’s financial health. That includes reserve levels, delinquency rates, owner-occupancy, the presence of commercial space, any underlying building mortgage, and pending special assessments. These items can affect approval and loan terms.
Side-by-side monthly example
Condo example
- Price: $1,000,000; 20 percent down; loan: $800,000 at 4.5 percent fixed, 30-year
- Approximate principal and interest: $4,053 per month
- Annual property tax: $12,000, or $1,000 per month
- Common charge: $900 per month
- Homeowner’s insurance estimate: $100 per month
- Total monthly for DTI: $4,053 + $1,000 + $900 + $100 = $6,053
Co-op example
- Price: $800,000
- Reported monthly maintenance: $2,750, which includes the shareholder’s share of building taxes and any underlying building mortgage
- If you finance part of the purchase, lenders add your loan principal and interest to the $2,750 maintenance to form your monthly housing obligation for DTI
Takeaway: two apartments can have similar total monthly costs, yet the condo breaks out taxes and HOA separately while the co-op wraps taxes and building debt into maintenance.
Special assessments and reserves
Both co-ops and condos can levy special assessments for capital projects or shortfalls. A large or ongoing assessment affects affordability and can factor into lender approval. A history of frequent assessments or sharp increases in maintenance or common charges can signal future increases. Ask for documentation and recent meeting minutes to learn what is coming.
Manhattan context to keep in mind
Manhattan has a large number of co-ops, especially prewar and mid-century buildings, alongside a robust condo market that includes newer and luxury development. Co-ops often have stricter board standards, detailed application packages, and approval timelines that can affect your closing schedule. Some buildings have tax abatements or payment-in-lieu-of-taxes programs that reduce taxes for a period. Confirm if any tax benefit exists and when it expires so you understand future cost changes.
Due diligence checklist for buyers
For co-ops
- Current maintenance statement and a line-item breakdown showing taxes, underlying mortgage, utilities, insurance, reserves
- Proprietary lease, house rules, and bylaws
- Building financials: last 2 to 3 years of budgets, audited financials, balance sheet, income statement
- Minutes from recent shareholder meetings to spot upcoming projects or assessments
- Details on any underlying building mortgage: amount, term, and rate
- Flip tax policy and any transfer fees
- Maintenance history for the last 3 to 5 years and any planned increases
- Board approval steps, required financials, and typical timing
For condos
- HOA budget, current operating statement, and reserve study
- Condo declaration, bylaws, and offering plan for newer properties
- Schedule of common charges with a line-item breakdown
- Recent meeting minutes and disclosures about planned assessments or litigation
- Owner-occupancy and common-charge delinquency rates
- Unit-level property-tax history and any abatements
Smart questions to ask on every tour
- What exactly is included in the monthly maintenance or common charge? Ask for a line-item list.
- Does the fee include property taxes, building mortgage payments, utilities, or bulk services?
- Are there existing or planned special assessments or major capital projects?
- What are the reserve levels and the recent increase history for fees?
- For condos: what was the last annual property-tax bill for this unit, and will the lender escrow it?
- For co-ops: is there an underlying building mortgage, and how is it reflected in maintenance?
- Are there any tax abatements tied to the unit or building, and when do they end?
- What are the board’s approval requirements and the usual turnaround time?
How to use this when comparing listings
- Normalize fees. For condos, add common charges, property taxes, and insurance to your P&I. For co-ops, add maintenance to your P&I if you are financing. This puts listings on equal footing for monthly affordability.
- Model future costs. If a tax abatement ends in two years, budget for the full, unabated tax amount. If reserves look thin, assume fees could rise.
- Share documents early. Provide your lender with the maintenance or HOA breakdown and any assessment details during pre-approval.
Next steps
If you want help comparing specific Manhattan listings, breaking down maintenance or common charges, or preparing a strong application package, reach out. With local experience and a clear, numbers-first approach, John O’Kane will help you reach a confident decision. Call John for a consultation.
FAQs
What is the difference between co-op maintenance and condo common charges in Manhattan?
- Co-op maintenance is a single monthly fee that includes your share of building expenses such as taxes and any underlying building mortgage, while condo common charges cover shared expenses only and you pay your unit’s property taxes and mortgage separately.
How are NYC property taxes paid for condos versus co-ops?
- Condo owners receive and pay an individual NYC property-tax bill, often escrowed by the lender, while co-op shareholders pay their share of the building’s tax through the monthly maintenance without a separate city bill.
How do maintenance or common charges affect mortgage DTI calculations?
- Lenders include all recurring housing costs: for condos they add P&I, taxes, insurance, and HOA; for co-ops they add P&I if financing plus the full maintenance amount, which already includes taxes.
What are special assessments and why do they matter when buying in Manhattan?
- A special assessment is an extra fee for capital projects or shortfalls; it can raise your monthly cost and may impact mortgage approval if large or long-lasting.
Are co-op maintenance fees tax-deductible?
- You may be able to deduct the portion of co-op maintenance attributable to building mortgage interest and real-estate taxes if the co-op provides an annual breakdown; consult your tax advisor for specifics.
