Are you torn between a condo in the city and a home in a suburban community with an HOA? You are not alone. Many Chicago buyers compare both options and wonder how dues, rules, and responsibilities stack up. In a few minutes, you will understand the key differences, what to look for in documents and budgets, and how to choose the fit that supports your lifestyle and budget. Let’s dive in.
Ownership and legal basics
What a condo means
When you buy a condominium in Illinois, you own your unit’s interior space and a shared interest in the building’s common elements like the roof, hallways, elevators, and land. Condos operate under the Illinois Condominium Property Act, which sets duties for associations and owners. You will see terms like Declaration, Bylaws, and Rules and Regulations in the resale packet. To learn the legal framework, review the Illinois Condominium Property Act.
Condo associations collect assessments, maintain common elements, manage budgets and reserves, and enforce rules. In Chicago, condos range from classic walk‑ups to amenity‑rich high‑rises in the Loop and along the lakefront.
What an HOA means
In a homeowners association, you usually own the land and the home in fee simple, and your property is subject to covenants, conditions, and restrictions that run with the land. The HOA manages shared amenities like private roads, a clubhouse, or stormwater systems, and enforces architectural and use rules.
You will receive CC&Rs, Bylaws, Architectural Guidelines, and community Rules and Regulations. Around Chicago’s suburbs, including Oak Park, River Forest, La Grange, Naperville, and Arlington Heights, HOAs are common in planned communities and townhome developments.
Dues, reserves, and assessments
What dues typically cover
Whether you buy into a condo association or an HOA, monthly dues generally support:
- Routine maintenance of common elements or shared areas
- Utilities for common spaces, such as hallway lighting or irrigation
- On‑site staff or professional management and amenity operations
- Insurance for common elements and, in many condos, the building shell
- Contributions to the reserve fund for future major projects
Always check what your dues include. Some communities include heat, water, internet, or parking, while others do not.
Why fees differ so much
Dues vary widely based on:
- Building type and scale. Elevators, doormen, central HVAC, and parking garages drive higher costs in many downtown high‑rises.
- Amenities. Pools, gyms, and concierge services increase staffing and maintenance.
- Age and condition. Older buildings often need larger reserves to fund roofs, façade, boiler, or elevator work.
- Allocation method. Your share depends on the percentage assigned in the Declaration.
- Included services. Lawn care, snow removal, cable, and utilities can raise or lower dues.
A small suburban townhome community that covers lawn and snow may have lower dues. A full‑service high‑rise with a pool and garage will often have higher assessments. Verify the exact fee and inclusions for every listing you consider.
Reserves and special assessments
A reserve fund pays for predictable, big‑ticket items like roofs, paving, elevators, and mechanicals. Best practice is to commission a reserve study and fund reserves over time. For a helpful overview, read CAI’s guidance on reserve studies.
If reserves are low or unexpected needs arise, the board can levy a special assessment. Review the history of special assessments, the most recent reserve study or summary, and current reserve balances. Reserves matter because underfunding often leads to surprise costs for owners.
Rules and governance
Common rules you will see
Both condos and HOAs set community standards. Typical rules address:
- Exterior appearance and architectural changes
- Landscaping, yard maintenance, and snow removal standards
- Parking, garage use, and guest parking
- Pets, including limits or waste rules
- Leasing, rental caps, and short‑term rental policies
- Noise, hours for common facilities, and nuisance issues
Rules vary by community, so read the documents rather than assume.
How rules are enforced
Boards made up of elected owners adopt budgets and enforce rules. Many communities hire a professional manager for day‑to‑day operations. Enforcement can include warnings, fines, suspension of amenities, and liens if assessments go unpaid. Transparency matters, so review meeting minutes, election procedures, and notices to see how the board conducts business.
Insurance and maintenance
Condo coverage basics
Most condominium associations carry a master policy that insures common elements and often the exterior building shell. Owners typically carry an HO‑6 policy that covers the interior finishes, personal property, and liability. Policies can be “all‑in” or “bare walls,” so confirm what the master policy covers and what your HO‑6 must include.
For maintenance, the association usually handles exteriors and building systems that serve multiple units. You handle interior repairs unless your Declaration states otherwise.
HOA coverage basics
In many single‑family HOAs, the association insures only common areas such as private roads, a clubhouse, pool, or landscaping. You would carry an HO‑3 policy for your dwelling and personal property. In some townhome HOAs, the association may cover exteriors or roofs. Always check the CC&Rs and the insurance summary.
Ask for the master policy’s summary, deductible amounts, and any loss assessment coverage requirements. After a large claim, owners can face a special assessment if coverage or reserves fall short.
Chicago and Cook County details
City to suburb trade‑offs
Chicago condo living often comes with shared services, elevators, and limited exterior chores. In the suburbs, you may find HOAs that include lawn care and snow removal, which can be a relief for busy schedules, but those services are paid through dues. Parking is different too. Downtown, parking might be deeded or leased. In suburban HOAs, you may have a driveway and garage, and the association may maintain private roads.
Renting and short‑term rentals
If you plan to rent your unit or rely on short‑term rental income, verify both municipal and association policies. Chicago has licensing and rules for short‑term rentals, and many associations limit or prohibit them. Confirm rental caps, minimum lease terms, and any approval steps before you write an offer.
Property taxes and records
Property taxes in Cook County are set by the Cook County Assessor and billed under the county system for both condos and HOA homes. Exemptions such as the Homeowner or Senior Exemption can lower your bill if you qualify. You can review assessments, exemptions, and tax details through the Cook County Assessor.
Buyer due diligence checklist
Documents to request
- Declaration or CC&Rs, Bylaws, and Rules and Regulations
- Architectural Guidelines, if applicable
- Last 2 to 3 years of budgets and audited or compiled financials
- Most recent reserve study or summary and current reserve balance
- Meeting minutes for the last 12 to 24 months
- Estoppel letter or disclosure showing current dues, any pending assessments, and owner delinquencies
- Master insurance policy summary with coverage limits and deductibles
- List of legal matters or pending litigation
- Management agreement and board contact information
- Policies on rentals, short‑term rentals, pets, parking, and architectural approvals
- Capital improvement plans and anticipated projects
Key metrics to evaluate
- Monthly dues and what they include, such as utilities, cable, parking, lawn and snow, and reserve contributions
- Reserve funding and the presence of a recent reserve study
- Owner‑occupancy and rental ratios, which can affect financing and insurance
- Delinquency rate for unpaid dues, since a high rate can signal risk
- History of special assessments or major dues increases and the reasons behind them
- Any pending litigation and potential financial impact
- Governance quality, including consistent budgeting and professional management
Red flags to watch
- No recent reserve study and very low reserve balances
- High delinquency rate, often above 5 to 10 percent as a caution
- Large or repeated special assessments in recent years
- Multiple open lawsuits, especially construction claims
- Missing financials or reluctance to provide required disclosures
- Insurance with large deductibles or exclusions that shift risk to owners
Real‑world comparisons
Downtown high‑rise condo. Expect higher assessments if the building has elevators, a doorman, a pool, and a garage. You will likely have less exterior maintenance and more on‑site services. Review the reserve study carefully, especially for façade, boiler, and elevator projects typical of older Chicago buildings.
Suburban townhome in an HOA. Dues can be lower to moderate if the HOA covers lawn care, snow, and exterior maintenance for townhomes. Verify exactly which components the HOA maintains and insures. Private roads and stormwater systems may be HOA responsibilities, which should show up in the budget and reserves.
The takeaway is simple. Do not assume an HOA is always cheaper than a condo. Compare your total monthly cost, including mortgage, taxes, dues, utilities, and insurance, along with the value of services and amenities.
Make a confident choice
Buying into a condo association or an HOA can be a great fit when you know the rules, the budget, and the long‑term plan. Always read the documents, confirm what dues include, and pay special attention to reserves and delinquency rates. For more background and consumer guides, you can also browse Illinois REALTORS resources and CAI’s consumer pages on budgets and reserves.
If you want a calm walkthrough of dues, reserves, and rules for specific Chicago or western‑suburb communities, we are here to help. Reach out to JLG Group to compare options, request key documents early, and make a confident offer.
FAQs
What is the main difference between an HOA and a condo association in Chicago?
- In a condo you own the interior of your unit plus a share of common elements, while in an HOA you typically own the land and home and the HOA manages shared amenities and covenants.
How do reserves impact my future costs as a buyer?
- Strong reserves reduce the likelihood of surprise special assessments, while weak reserves often mean higher risk of sudden dues increases or owner assessments.
What insurance do I need for a Chicago condo vs an HOA home?
- Condo owners usually carry an HO‑6 walls‑in policy on top of the association’s master policy, while many HOA homeowners carry an HO‑3 policy that covers the dwelling and personal property.
Are HOA dues always lower than condo dues in the Chicago area?
- No, dues depend on services, amenities, building systems, and reserves; you should compare total monthly cost and what is included for each property.
Can I rent my unit or home if I buy into an association property?
- It depends on the association’s leasing rules and any municipal regulations; always check rental caps, minimum lease terms, and short‑term rental restrictions before offering.
What should I review before writing an offer on a condo or HOA home?
- Ask for governing documents, budgets and financials, the latest reserve study, insurance summary, meeting minutes, delinquency rates, and any litigation or pending assessments.
