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Thread: Amenity Fees
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Old 08-10-2024, 07:43 AM
Bill14564 Bill14564 is online now
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Quote:
Originally Posted by Maker View Post
If everyone gets the exact same amenities, WHY are the fees different?
I asked, and was given a long explanation about how they use sales dates, anniversary dates, etc, to arrive at a unique fee per house. They never could say WHY they are all different, other than "this is how we do it."
A guess:

1. Buyers will feel better about a rate that is adjusted annually for inflation rather than a rate that is set arbitrarily each year.

2. Adjusting the rate on the anniversary of the initial sale rather than the date of resale makes it easier to project income - the date a home will be adjusted for inflation is fixed, it never varies.

3. NOT tying the annual change in the prevailing rate (the Amenity fee set when a home changes hands) to inflation allows the Developer to make a larger increase if necessary.
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