If you only look at the purchase price and ignore the monthly maintenance, you are not actually budgeting for a Manhattan apartment.
Maintenance fees are one of the most misunderstood parts of buying in Manhattan. They can feel arbitrary, confusing, and sometimes shockingly high. Buyers often ask whether they are being overcharged or whether a building with high maintenance is automatically a bad deal.
The reality is more nuanced. Maintenance fees tell a story about how a building is run, what it includes, and how predictable your long-term costs will be. Once you understand what you are paying for, those numbers start to make a lot more sense.
Let’s break it all down clearly.
First, What Are Maintenance Fees?
In Manhattan, maintenance fees apply primarily to co-op apartments. If you are buying a condo, the equivalent is called common charges, which work differently and usually do not include taxes.
Maintenance fees are paid monthly and cover your share of the building’s operating costs. You are not paying rent, but you are contributing to the expenses required to run and maintain the property.
What Maintenance Fees Typically Include
Although every building is different, most Manhattan co-op maintenance fees cover a similar set of core expenses.
Property Taxes
One of the biggest components of maintenance is property tax. In a co-op, taxes are paid by the building as a whole and then passed on to shareholders through maintenance.
This is why co-op maintenance often looks higher than condo common charges. Condo owners pay property taxes separately.
Building Staff
Maintenance fees usually cover salaries and benefits for building employees, such as:
- Doormen
- Porters
- Handymen
- Superintendents
Full-service buildings with multiple staff members will naturally have higher maintenance than walk-up buildings.
Utilities
Many co-ops include some utilities in maintenance, such as:
- Heat
- Hot water
- Sometimes gas
- Electricity is usually billed separately to the apartment.
Building Insurance
Maintenance covers the building’s master insurance policy. This protects the structure and common areas, not the interior of your apartment.
Owners are still responsible for their own homeowner’s insurance.
Repairs and Ongoing Maintenance
This includes routine expenses such as:
- Elevator servicing
- Boiler maintenance
- Roof repairs
- Hallway upkeep
- Common area cleaning
Well-run buildings budget for these expenses proactively rather than reacting to emergencies.
Underlying Mortgage, If Applicable
Some co-ops have an underlying mortgage on the building. Your portion of that debt is included in maintenance.
This is not inherently bad. In fact, many financially strong buildings carry low-interest debt intentionally.
It does mean:
- Part of your maintenance goes toward debt service
- You may receive a tax deduction on your share of interest, depending on your situation
- This is something buyers should review carefully with their attorney and tax professional.
Why Maintenance Fees Vary So Much Between Buildings
Buyers often compare maintenance fees across listings and assume lower is better. That is not always true.
Maintenance varies based on several factors.
Building Age
Older buildings often have:
- Higher maintenance needs
- Larger repair budgets
- More complex systems
Newer buildings may have lower maintenance initially, but that can change as the building ages.
Level of Service
A full-service building with a doorman, live-in super, and multiple elevators will cost more to run than a simple walk-up.
You are paying for convenience, security, and staffing.
Amenities
Buildings with gyms, roof decks, storage rooms, and laundry facilities incur additional operating costs.
Amenities are never free. They show up in maintenance.
Financial Management
Two similar buildings on the same block can have very different maintenance fees based on how they are managed.
Strong management means:
- Proper reserves
- Planned capital projects
- Fewer surprise assessments
Low maintenance can sometimes indicate deferred maintenance, which creates problems later.
Maintenance vs. Assessments
It is important to understand the difference.
Maintenance
- Paid monthly
- Covers ongoing operating expenses
Assessments
- Temporary additional charges
- Usually tied to major projects like facade work, elevator replacement, or roof repairs
A building with slightly higher maintenance but no assessments can be healthier than a building with low maintenance and frequent assessments.
How Maintenance Affects Affordability
Maintenance directly impacts how much apartment you can afford.
Lenders factor monthly maintenance into:
- Debt-to-income ratios
- Loan approval amounts
A higher maintenance fee can reduce purchasing power, even if the apartment price is lower.
This is why buyers should always evaluate the total monthly cost, not just price per square foot.
Tax Deductibility and Maintenance
Some portions of co-op maintenance may be tax deductible, including:
- Your share of building mortgage interest
- Your share of property taxes
This depends on your personal tax situation. Buyers should always consult a qualified tax professional.
Do not assume deductibility without confirmation.
What Buyers Should Review Before Committing
Before buying, buyers should carefully review:
- The co-op’s financial statements
- Annual budgets
- Reserve levels
- Any planned capital projects
- History of assessments
This is where experienced guidance matters. Maintenance numbers alone do not tell the full story.
Red Flags Related to Maintenance
Maintenance fees are not bad, but certain patterns deserve closer attention.
Potential concerns include:
- Maintenance that is unusually low for a full-service building
- Frequent recent assessments
- Rapid increases without explanation
- Poor reserve funding
None of these automatically mean do not buy, but they require deeper analysis.
How Maintenance Affects Resale Value
Maintenance impacts buyer psychology.
Apartments with:
- Reasonable, predictable maintenance
- Well-managed buildings
- Clear financials
Tend to sell more smoothly than those with confusing or volatile costs. Buyers may accept higher maintenance if they trust the building.
The Biggest Mistake Buyers Make with Maintenance
The most common mistake is treating maintenance as an annoyance rather than a data point.
Maintenance tells you:
- How the building is run
- How proactive the board is
- What your long-term costs might look like
Ignoring it is a missed opportunity to evaluate risk.
The Smarter Way to Evaluate Maintenance
Instead of asking whether maintenance is high or low, ask:
- What does it include?
- Is the building financially healthy?
- Are future costs predictable?
- Does the lifestyle justify the expense?
That shift in mindset leads to better decisions.
If you want help evaluating maintenance before you make an offer…
If you are looking at apartments and want a clear read on whether a building’s maintenance actually makes sense for your budget and goals, you can reach me through my website or message me on Instagram @TheNewYorkCityBroker. I’m always happy to help you review the numbers before things get serious.
