This Week's Q & A

Q: My daughter and her roommates rented a townhouse near their college. The landlord collected a security deposit plus the last month's rent in advance. That amount seemed excessive to me, but the landlord says it is allowed because of their student status. He also said he isn't required to pay interest on the security deposit, because he will be holding it for only nine months. Are his explanations accurate?

A: More or less. The landlord can collect an amount equal to the first and last month's rent plus a security deposit not because he is dealing with tenants who are students, but because that is what state law allows a landlord to collect in advance. As for the interest payment on the security deposit, he is absolutely correct. The law requires the payment of interest on a security deposit only if it is held for at least a year. However, interest on the last month's rent accrues and must be paid even if the tenancy lasts less than a year.

Q: I am thinking about selling my home and purchasing a condominium, but am uncertain about the advisability of that move. I am 62, in good health, and fully capable, both financially and physically, of maintaining my existing property. Can you give me your ideas on the pros and cons of condominium ownership, and/or recommend any published information on that issue?

A: The fact that you’re asking the question is a good sign. Many people don’t consider the differences between owning a detached, single-family home and owning a condominium until after they have purchased a condominium unit and discovered there are some aspects of the condominium lifestyle they don’t particularly like.

On the “pro” side, condominium ownership offers many conveniences and efficiencies. As a condominium owner, you own your unit but you share ownership of the common areas with all the other unit owners. That means you may have access to some amenities (swimming pools, tennis courts, health club facilities, etc.) that you could not afford on your own. Condominium ownership also makes you part of a community. You will be living in close proximity to other condominium owners, which will be more or less appealing, depending on how well you and your neighbors get along (a point I’ll discuss more later). But a condominium can offer more opportunities for social interaction than typically existing in a neighborhood of detached, single-family homes.

The close proximity of other owners suggests another condominium advantage—security. It can be considerably easier to lock your door and take a prolonged vacation if you’re living in a condominium, where other owners can easily keep an eye on your unit while you’re gone <

On the other hand, not everyone likes the idea of having close – sometimes very close – neighbors, and that’s an important consideration for anyone contemplating condominium ownership. As a condominium owner, you will become part of a community, and a self-governing community at that. If you don’t like the other homeowners in your neighborhood, you probably don’t have to talk to them. In a condominium, you may be forced to interact with other owners on a fairly regular basis. You will see them in the common areas, depending on how the development is constructed, you my hear them through the walls, you will encounter them at community association meetings, and you will be involved with them (or should be) in making decisions about maintenance, renovations, and rules and regulations governing your community.

The converse also is true, of course. You probably will like many of your fellow-owners and be able at least to tolerate most of them. But it is a good idea to find out as much about the condominium community and how is it governed as you can. Your best source for that information will be other owners, who usually will be more than happy to tell you what they like and what they don’t like about the condominium, its governance, and especially the other owners.

Maintenance issues also are an area of potential concern for prospective condominium owners. As a condominium owner, you will be responsible for maintaining your own unit, as you are responsible now for maintaining your home. But all owners in a condominium community collectively are responsible for maintaining the common areas. So the community association or the management company it retains will take care of such details as tending the grounds, shoveling the snow, and keeping all the major common area equipment (heating and cooling systems, elevators, building exteriors, etc.) well-maintained and operating properly. If something breaks in your unit, you will have to take care of it, but if the roof leaks or the swimming pool pump needs replacing, typically the community association will oversee the replacement or repair. <

Even so, owning a condominium is not the same as renting an apartment. And the failure to recognize that distinction probably is one of the major sources of dissatisfaction with condominium living. You don’t totally relinquish your ownership burdens when you buy a condominium; you simply share them, to some extent, with the other owners in your community. You also share the financial responsibility should anything go wrong in the areas or with the equipment you own in common. In a detached home, if your neighbor’s roof needs replacing, you may sympathize with his plight, but you probably won’t offer to help pay for the new roof. If the condominium roof needs replacing, you and all the other owners may have to pay a special assessment to cover the cost. So you have to be just as concerned about the proper maintenance and repair of common areas as you are about the maintenance and repair of the unit you buy. You also have to be concerned about the quality of the condominium management, the efficacy of its governing body, and its overall financial stability – issues that don’t arise in the purchase of a detached, single-family home.

Also on a list of potential negatives are the condominium rules and regulations, which may limit or eliminate some rights homeowners typically take for granted. Your condominium unit may be your castle, but you won’t necessarily be able to do anything you want there. For example: <

	Some condominiums prohibit owners from renting their units or impose restrictions on their ability to do so.
	Many prohibit pets, or limit the kinds or sizes of pets owners can keep.
	Many require the condominium board to approve any exterior design change—the replacement of an exterior balcony railing, for example, or painting an outside wall.

Again, the existence of these rules isn’t an argument against condominium ownership; but it is a strong argument for doing extensive and careful research before you buy.