Why do you pay a monthly fee for an apartment you own?
By Olof Kernell • November 25, 2025
It may feel strange to pay a monthly fee even after buying your home. The ownership structure of a Swedish condominium works differently from other types of housing, such as single-family homes. When you buy a condominium, you own the right to live in the apartment, but you do not own the building itself. The building is jointly owned by all members of the housing association. In this article, we explain how it works and what the fee is used for.
Quote:
"The monthly fee covers important costs that keep the building functioning, such as maintenance of the property and shared areas."
"The monthly fee covers important costs that keep the building functioning, such as maintenance of the property and shared areas."
The difference between a condominium and a rental apartment
When you buy a condominium, you purchase the right to live in an apartment owned by a housing association. You become a member of the association and pay a monthly fee that covers operating and maintenance costs. A rental apartment works differently. You rent the home from a landlord and pay a monthly rent, while the landlord is responsible for maintaining the apartment and the building.
The housing association fee
When you buy a condominium, you automatically become a member of the housing association. The association owns the property and is responsible for managing and maintaining it. The monthly fee you pay goes toward covering the association’s costs for running and maintaining the building.
The association has a board elected by its members. The board is responsible for managing the finances and making decisions about maintenance and renovations. As a member, you can influence these decisions by attending annual meetings and voting on important matters.
What the fee includes
The monthly fee covers a variety of costs. Exactly what is included may vary between different housing associations, so it is a good idea to check the association’s statutes and financial plan. Here are some common examples:
- Operations and maintenance: A large portion of the fee goes to maintaining and operating the building. This includes cleaning of common areas, snow removal, gardening, elevator maintenance and repairs.
- Heating and water: These costs are often included in the fee.
- Waste collection: Most associations include refuse collection in the monthly fee.
- Insurance: The association typically has property insurance that is covered by the fee. This insurance protects the building against damage such as fire or water leaks.
- Interest and loan repayments: If the association has loans, part of your fee goes toward interest payments and amortisation.
How the fee is determined
The housing association’s board decides the size of the monthly fee. They take the association’s finances and expected costs into account when setting the amount.
Several factors can affect the fee. Older buildings with higher maintenance needs often have higher fees, while newer buildings may have lower ones. Interest rates also play a role, as higher interest costs on the association’s loans may lead to increased fees. A financially strong association that actively repays its loans may be able to keep fees lower.
The number of shared facilities and services the association provides, such as a laundry room, gym or broadband, can also influence the fee. It is important to remember that the fee can change over time. The board can decide to raise or lower the fee depending on the association’s financial situation and future expenses.
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