What do recurring expenses refer to in condominium management?

Recurring expenses in condominium management refer to frequent costs related to service contracts. These are regular and ongoing payments that a condominium corporation must budget for to maintain operations and services. Such expenses typically include costs associated with maintenance contracts, utilities, management fees, and insurance premiums, which are incurred repeatedly over time.

Understanding recurring expenses is crucial for effective financial planning within a condominium. They form a significant part of the operating budget and need to be managed carefully to ensure the financial health of the condominium association. This contrasts with options like one-time payments, emergency fund allocations, and initial capital investments, which do not represent ongoing liabilities but rather singular or unexpected expenses that do not recur at regular intervals.