Common Area

Definition

A common area refers to the shared spaces within a property that are accessible and used by all tenants or owners. These areas play a crucial role in the property’s functionality and community experience.

Examples

Clubhouse and Pool: Amenities typically found in condominium developments and used by all residents.
Hallways and Stairs: Parts of an apartment building that provide access to individual units.
Elevators: Vertical transportation systems within office buildings or high-rise apartments.
Mall Areas: Shared walkways and gathering spots in shopping centers.

Frequently Asked Questions (FAQs)

Can tenants be restricted from using the common areas?

Yes, property managers or owners can impose rules and restrictions on the use of common areas to ensure safety and respect the rights of all tenants.

Who is responsible for the maintenance of common areas?

Usually, property management or homeowners’ associations (HOAs) are responsible for the upkeep and maintenance of common areas, funded by common area maintenance (CAM) fees paid by tenants or owners.

Are common areas included in the purchase price of a property?

The use of common areas is typically included within the ownership rights of individual units in a property, and the maintenance costs may be factored into CAM fees or association dues rather than the purchase price.

How are disputes over common area usage resolved?

Disputes are often addressed through the property management or homeowners’ association bylaws, which dictate the appropriate use and dispute resolution processes.

Can common areas be altered or repurposed?

Any alterations or repurposing of common areas generally require approval from the property owners’ association or a majority vote among property owners, depending on the governing documents.

Common Area Maintenance (CAM): Fees paid by property tenants or owners for the maintenance of common areas.
Homeowners’ Association (HOA): An organization in a subdivision, planned community, or condominium that makes and enforces rules for the properties and residents.
Property Management: The operation, control, maintenance, and oversight of real estate properties.
Condominium: A large property complex divided into individual units and sold, with the title to each unit owned individually and the common areas collectively owned by the unit owners.

Online Resources

Suggested Books for Further Studies

“Property Management Kit For Dummies” by Griswold
“The New Condo Buyer’s Guide: Everything You Must Know When Buying a Condo” by Dan S Kainer
“Professional Property Management: Transforming People and Properties for over 50 Years” by Robert C. Kyle and Floyd M. Baird
“Real Estate Principles: A Value Approach” by David C. Ling and Wayne R. Archer

Fundamentals of Common Areas: Real Estate Basics Quiz

### What is a common area? - [ ] An individual unit owned by a tenant. - [ ] A proprietary section of a building. - [x] A shared space within a property accessible and used by all tenants or owners. - [ ] A secluded area used exclusively by property management. > **Explanation:** A common area refers to shared spaces within a property that are accessible to and used by all tenants or owners within that property. ### Who is typically responsible for the maintenance of common areas? - [ ] Individual tenants - [x] Property management or homeowners' associations - [ ] External contractors - [ ] Local government authorities > **Explanation:** Property management or homeowners' associations (HOAs) are usually responsible for maintaining common areas, and these costs are often funded through common area maintenance (CAM) fees. ### Which of the following is NOT an example of a common area? - [ ] Hallways in an apartment building - [ ] Elevators in an office building - [ ] Clubhouse in a condominium development - [x] Private bedroom in an apartment unit > **Explanation:** A private bedroom in an apartment unit is not a common area because it is used privately by the individual tenant. ### What are CAM fees used for? - [ ] Tenant entertainment - [ ] Leasing individual units - [x] Maintenance of common areas - [ ] Marketing property listings > **Explanation:** Common Area Maintenance (CAM) fees are used to fund the upkeep and maintenance of shared common areas within a property. ### Can tenants be restricted from using common areas? - [x] Yes, rules and restrictions can be imposed for safety and respectful usage. - [ ] No, all tenants have unrestricted access. - [ ] Tenants decide which areas they can access themselves. - [ ] Usage restrictions only apply to external visitors. > **Explanation:** Property managers or owners can impose rules and restrictions on the use of common areas to ensure safety and respect the rights of all tenants. ### What is the role of a homeowners' association (HOA) concerning common areas? - [ ] Selling individual units - [ ] City compliance - [x] Making and enforcing rules for common areas - [ ] Providing individual tenant repairs > **Explanation:** Homeowners' Associations (HOAs) make and enforce rules concerning the common areas to ensure proper use and maintenance for the collective benefit of all property owners or tenants. ### Why might a property management team require regular maintenance of common areas? - [x] To ensure a safe and pleasant environment - [ ] To increase the cost of CAM fees - [ ] To maximize privacy - [ ] To limit tenant interactions > **Explanation:** Regular maintenance of common areas ensures a safe and pleasant environment for all tenants or owners, which directly impacts the property’s overall appeal and functionality. ### How are disputes over common area usage typically resolved? - [ ] By calling local law enforcement - [ ] Through random selection of tenants - [x] By following property management or HOA bylaws - [ ] By ignoring the issue > **Explanation:** Disputes are often resolved through property management or homeowners' association bylaws, which outline the rules for use and the dispute resolution process. ### In which document would one most likely find rules regarding common area usage? - [ ] Tax records - [ ] Individual lease agreements - [x] HOA bylaws or covenants - [ ] City's public infrastructure plan > **Explanation:** Rules regarding common area usage are typically found in the homeowners' association (HOA) bylaws or covenants. ### When might common areas be altered or repurposed? - [x] Only with approval from the property owners' association or majority vote - [ ] Anytime by any tenant - [ ] Without any notice - [ ] Only upon property sale > **Explanation:** Altering or repurposing common areas generally requires approval from the property owners' association or a majority vote among property owners, as determined by the governing documents.

Thank you for exploring the concept of common areas in property management and real estate. We hope this clarifies the responsibilities and common practices associated with these shared spaces!