Common Area

A common area is a portion of a property that is used and enjoyed by all owners or tenants within that property. Typical examples include clubhouses and pools in condominium developments, hallways and stairs in apartment buildings, elevators in office buildings, and the central mall area in shopping centers.
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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

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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!

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