Do condo dues stay the same forever?

That’s a very financially prudent question to ask. The short and direct answer is: No, you should absolutely not expect your condominium dues to stay the same forever. In fact, a well-managed condominium will have periodic, planned increases in its dues.

Thinking of your dues as a fixed cost is a common misconception. It’s more accurate to see them as your proportional share of the building’s annual operating budget, which is dynamic. Let’s break down why they change and how the process works.

1. Why Do Condo Dues Increase?

There are several predictable reasons why the cost of maintaining a building goes up over time:

General Inflation: This is the primary driver. The cost of everything the dues pay for increases year after year. This includes the salaries of security guards and maintenance staff (which are also affected by government-mandated wage hikes), the cost of cleaning supplies, electricity rates for common areas, and insurance premiums. As of mid-2025, we’ve all seen how inflation can impact daily costs, and a condominium building is no different.

Aging Building & Capital Expenditures: A brand-new building has minimal repair needs. However, a 5-year-old building will need more upkeep than a new one, and a 15-year-old building will require major capital expenditures. Regular dues must be sufficient to not only cover daily maintenance but also to build up a Reserve Fund for these future big-ticket items, such as:

Repainting the entire building exterior.

Major elevator overhauls or replacements.

Replacing main water pumps or generator sets.

Re-waterproofing of the roof deck or pools.

Building Upgrades & Improvements: Sometimes the community of homeowners may decide to invest in upgrades to improve security, lifestyle, or property value. This could be installing a more advanced CCTV system, renovating the lobby, or upgrading the gym equipment, all of which would be factored into a new, higher budget.

2. How Are Increases Decided? (You Have a Say!)

An increase in dues isn’t arbitrary. It follows a formal, democratic process:

Annual Budgeting: The Property Management Office, overseen by the homeowner-elected Board of Directors, prepares a detailed budget for the upcoming year. This budget forecasts all expected operational costs and allocates funds for the Reserve Fund.

Presentation & Approval: This proposed budget is presented to all unit owners during the Annual General Homeowners’ Assembly. The Board will justify the need for any proposed increase in dues by showing the breakdown of expenses.

Majority Vote: The budget, including the dues increase, must be approved by a majority vote of the condominium corporation’s members (the unit owners). Your participation in these meetings is your opportunity to ask questions and cast your vote.

So, while increases are inevitable, they are transparent and require the consensus of the community.

3. What is a “Special Assessment”?

This is another critical cost to be aware of. A special assessment is a one-time, extra fee levied on all unit owners to cover a large, urgent, and typically unbudgeted expense that the regular dues and existing Reserve Fund cannot cover.

Examples are very relevant to us here in Cebu:

Major structural repairs needed immediately after a strong typhoon or earthquake.

A sudden, catastrophic failure of a critical system, like the central air-conditioning or an elevator, that requires immediate replacement.

The cost of a major lawsuit against the condominium corporation.

A large-scale upgrade that the homeowners vote to fund immediately rather than over several years.

Like a dues increase, a special assessment must also be approved by a majority vote of the homeowners.

Conclusion & Advice:

You should budget for a small, reasonable increase in your condo dues every 1-3 years. A condo board that is proactive and transparent about raising dues to keep pace with inflation and build a healthy Reserve Fund is actually a sign of good governance. It shows they are protecting the long-term structural and financial health of the building, which in turn protects the value of your personal investment.

When buying a condo (especially from the secondary market), I highly recommend you ask for a copy of the condominium corporation’s most recent financial statements and the minutes of the last Annual General Assembly. This will give you a clear picture of the building’s financial health, the status of the reserve fund, and whether any dues increases or special assessments are being discussed.