Condominium ownership will involve monthly maintenance fees. These condo fees do not go to the builder-rather, they are managed by the property manager designated by the owners to run the day to day operations of the Condominium Corporation.
Type of Condo Fees
These fees are charged in accordance with the facilities that each buyer has purchased-if a resident does not own a locker or parking spot, they will not be charged a fee for them.
Unit maintenance fees go towards operating costs for amenity spaces and other shared costs. This includes features such as pools, gyms, concierge services, common area cleaning staff, common area utility costs and any other costs that benefit all residents (window washing and other exterior maintenance are common examples).
Parking spot maintenance fees go towards the upkeep of underground facilities, such as lighting, heating, washing of concrete surfaces and maintaining automatic doors.
Locker spot maintenance fees are for upkeep costs in locker rooms.
How to Calculate Condo Fees
The condo fee is typically calculated pro rata on the percentage which each component represents of the total building. There are several major factors that help determine the amount of fees:
The number of units in the building. Larger buildings tend to have lower fees, as there are more owners to help split the costs of maintaining and operating it (though this is not always the case).
Available amenities. Condo buildings come equipped with a wide array of leisure facilities and higher fees must be charged in order to maintain the buildings which have many facilities.
There will also be a portion going towards a reserve fund. As per the Condominium Act, all condo buildings are required to have a reserve fund to cover costs of future wear and tear of common areas and building components.
Special Assessments
More common in older buildings, these are fees for repairs or other maintenance costs that are not covered by reserve funds. While they can be high, monthly maintenance fees can drop after the repairs are completed.
Fee Increases
Condo fees are reviewed yearly based on an audited budget of the costs to run the building.