What Do Condo Fees Include?

Most often, when clients inquire about a condo, they focus on price and location, but one major area I always inform clients on is Condo Fees. After all, your monthly budget for living expense will be comprised of (usually) a blended mortgage and tax payment as well as additional condo fees.  

Some clients want a pool, gym, theatre room, entertaining area, outdoor patio, the 'works' so to speak. While others are just happy with their unit and a convenient location. Recently, I was asked, "why is this building so much more in condo fees than the last one? It's newer so it should need less maintenance no?"

Let's dive in a bit closer and unpack their question. First off, it's important to know that there is no standard rate for Condo Fees in Canada. Whether it's town houses or in an apartment complex or even in a residential park owned by a condo corporation, condo fees are usually collected and divided into 3 separate budgets.  

1) Amenities: Remember my clients question about the fees? Well in that situation, the building had quite an extensive list of amenities offered to their occupants. It had an indoor pool, rooftop patio complete with BBQ's, billiards and gaming room, it even had a nice wood working shop in it. All of these elements require regular cleaning and maintenance. So my client complaining about the, almost $100/month more in fees, is really purchasing the right to use all these extra rooms at their disposal.  

2) External care: Now what's interesting with my client's remark, the First condo we looked at had a very lavish garden. It was beautiful in every way (or at least the pictures looked beautiful, its hard to see the flowers in February). It also boasted much more natural light in the units which means... you guessed it. MORE WINDOWS. External care is self explanatory. From snow removal, gardens, window cleaning and often out door lounge or patio areas.  

3) Reserve Fund: Condo corporations often have yearly plans both short term and long term for the building. Planned renovations require extra that year so to avoid a heavy levy on the owners of the units, they build their plan into the condo fees. But, as is life, not every renovation or update is planned. This fund is also used for emergency repair.  

To read more on how the Condo Fees are calculated and other resourceful information go to:

https://blog.remax.ca/what-do-condo-fees-actually-cover/