What does "Heat, Central Air Included" mean regarding a condo unit?

My daughter and her boyfriend bought a condo a while back (Still can’t get a live person at the mortgage company!)

Part of the HOA fees are to include Water, hot water, heat, and central air.
What exactly does that mean? She ran the air during the day several times last month and her electric bill was astronomical. If central air is “included” wouldn’t that mean also the power to run it? What does “hot water included” mean? There is a water heater in her unit. Does it just mean that and she pays for the electricity to run it?

She’ll be discussing this with her HOA rep, but I would like to know for myself. I own a 12 unit apartment complex but it does not have central air. Tenants are free to install window units but they have to pay for electricity.

Paging @LSL

Understanding of course it might be very location specific both in law and local custom and tradition.

Here you go - paging @LSLGuy

Well, of course she has to pay her electric bill for whatever she runs in the unit.
The HVAC is installed doesn’t mean she has to run it. AC is nice, especially in this heat dome but not a right.

If it said “Utility bills are all paid” then yes, it means the management company pays them.

I doubt there’s very many nicer rental companies that do pay utilities. It’s too variable.

My Daddy’s rental units, he made a deal with the city and paid a flat rate for water/sewage and trash pick-up. He just added it to the average rent for the area. The renter had to pay deposit for electric to be turned on and the bill every month. If there was gas heat, same, Deposit and bill.

Thank you!

“Heat, Central Air Included” sounds like something from the real estate listing that your daughter responded to. There should be a written contract with the HOA. What the condo owner is expected to pay for, and what the HOA covers, should be in black and white in the contract.

Did your daughter and her boyfriend not read the CC&Rs before buying into the condominium? They should exactly what is covered by HOA fees, which likely includes insstallation and basic maintenance of HVAC systems but not the operating costs, because of course an HOA isn’t just going to cover utilitites.

The mortgage companhy has nothing to do with the HOA otehr than (presumably) wrapping HOA fees into the mortgage to make sure that the borrower doesn’t default by not paying the fees.

Stranger

I assume so. I do wonder, however, why her electric bill for a condo is more than mine is for a 3 story 4 bedroom home.

Well aware of that. Was just giving background on the property.

This is her first property ownership. She’s asking questions now she should have asked before buying.

You definitely want to read the condo declaration and bylaws, but I would read that as there is a central boiler and chiller that supply domestic hot water as well as hot or cold water for a fan coil unit for heating and cooling. This is the setup my mother has in her 1984 built condo.

Could the electric bill be high due to setup charges or an incorrect reading as the opening value?

Who knows how ancient and inefficient that central air conditioner is? She should just install her own units (separate ones in each room) - she’ll end up saving money in the long run.

Sorry I can’t add much certainty, just more informed speculation. Here are some fact-bites gained from my years living in condos in various states and being a condo prez and de-facto manager in FL.


Any relevant laws are state laws. So that means 50 answers (at least) across the USA.

In most states, homeowner’s associations and condo associations are regulated differently; many similarities but also many differences. So the terms are not interchangeable, and much confusion can result from using them that way. Which gets especially important if the OP’s daughter needs to consult the relevant state law as opposed to the bylaws and rules of the Association she bought into.


Legally speaking, a condo association is a flavor of business corporation. It has a constitution (also called a “declaration of condominium”), bylaws, and rules. In that order of precedence from most to least.

The Declaration by whatever name is the document most likely to establish what exactly the unit owners own versus what the Association owns. The exact demarcations are often a mixture of state law and local developer custom.

For example under the doc’s I’m most familiar with, the Association owns the drywall in your unit and you own the paint or wallpaper on the drywall. They own the structural floor and ceiling, and you own the decorative carpet / tile / hardwood / whatever flooring and the ceiling popcorn / paint. They own the pipes and wires in the walls and you own the toilets, sinks, and decorative plates around outlets and switches. etc. It’s generally a violation of the docs for you to work on their stuff or them to work on your stuff.

As well, that’s where you’ll find who’s responsible for maintenance of what. Often it’s a matter of you own it = you maintain it. But sometimes not.


In an enclosed high-rise type building this HVAC arrangement would not be unusual:

With the happy result that although you will be directly paying for the electricity to run the fans that blow air over the heat exchanger coils in your rooms, that’s a pittance compared to paying for the heat or AC capacity the central system provides.

And with the concomitant downside that the heat is not real hot, the cool is not real cool, and the entire building is doing one or the other, not either/both. Your choice is pretty much limited to “on” or “off”. Which in the Midwestern shoulder seasons can often be uncomfortable half the day or night.


Another (slim) possibility is it means each condo unit has an individual 2-part HVAC system with an airhandler / evaporator inside the unit and an exterior compressor outdoors nearby or on the roof. And that those items are owned by = maintained by the Association while their utility consumption is on the individual unit owner.


Without seeing any of the docs, I’d wager the most likely interpretation of the OP’s words:

means that those items are centrally billed to the Association who in turn includes that in the monthly maintenance fee. Although that conflicts with the OP’s statement that


My bottom line: The OP’s daughter has some studying to do.

One thing to be clear about with condos or with HOAs regardless of the niggledy details: Big picture there is only one source of revenue: the owners. So whatever expense we’re talking about, be it electricity, lawn care, or a new roof, either you’re paying for something individually, or you’re paying for it collectively. So if you want to know who’s ultimately paying look in the mirror. Because it’s you.

That’s not a bad thing, but sometimes folks lose sight of that reality.

I was in her unit 2 weeks ago when it was a swealtering 91 outside and unbearably humid.
Her place was like an ice box. I was impressed. But where the frigid air is coming from I know not.

Also, the hallways were quit cool as chilled air was coming through the vents. I didn’t see any units on the roof of the building.

Well, that’s why her electric bill was excessive right there.

Tell her to keep the thermostat at a more temperate level. Like say 70°

That HVAC unit was somewhere. They may all be in a location, central to that block of units, hidden from view or copper thieves.

It’s possible that she has both central air, and also individual AC units in her place. The central air is covered by the fees, but not the individual AC.

Yes, I’ve never heard of a rental/condo where electricity is provided. I’m thinking “included” meant that the unit existed and could be used if so desired. In the “legalezian” language, of course, it all depends on how it is worded.

It was pretty standard where I am until about the mid 80’s when separate metering started to become more common and it is now required in all new buildings to encourage energy conservation.

Is it possible that this had nothing to do with the air conditioning ? There have been a couple of times where everyone in my area had a super-high electric bill and supposedly the cost of electricity from the suppliers had gone up that month. Also, the way you said she ran it during the day a few times makes me wonder if she’s not normally home during the day. My electric bill is always higher when I’m home more than usual during the day - I’m using lights and the TV and so on for more hours but probably more importantly , I’m doing the laundry and running the dishwasher at different hours.

Hell, we have to keep ours at 81°; any lower and the AC will try to run 24/7 without any noticeable difference. With the southern exposure, the sun beats down on the balcony and the HAVC’s utility closet all afternoon; our HVAC never could keep up with that.

I accidentally locked the AC at 72, and it felt kinda chilly in the house. That’s warm in the winter, but it’s cool when you’ve adapted to summer.

I never change mine. They scream when it starts getting warm. Cooking, dryer running, showers, kids flapping doors, even the kitty flap. And you have a struggle some days.

I keep telling them sit still, turns lights lower and quit eating*. They’ll cool off.

(* I have a pet theory, if you eat heavy you’re warmer as you digest, probably just feels like it. But I preach it, baby)