Video: Condo Maintenance Fees Explained

Breaking Down Condo Maintenance Fees: Costs, Coverage & Insights!

Are you wondering what exactly condo maintenance fees cover and why they vary from building to building? Whether you’re a first-time condo buyer or an existing owner looking to better understand your monthly expenses, this guide will break it all down for you.

What Are Condo Maintenance Fees?

Also referred to as condo fees or common expenses, these are mandatory monthly payments required from every unit owner. The amount you pay depends on several factors, including:

Size of the Building – Larger buildings with more units often spread costs out, but can also have higher operating expenses.
Age of the Building – Older buildings may have higher fees due to increased maintenance and repair costs.
Amenities Offered – Features like pools, gyms, concierge services, and rooftop terraces all contribute to costs.
Your Unit’s Proportionate Share – Fees are typically calculated based on the square footage of your unit, plus any additional owned spaces like parking spots and storage lockers.

For example, if your condo is 1,000 square feet in a building with 100,000 square feet of total unit space, you’d likely pay 1% of the total monthly operating costs.

Looking for an in-depth look at condo ownership as a whole? Watch this video right here next!

What Do Condo Fees Cover?

While every condo corporation’s budget is different, the following are the most common expenses included in condo fees:

Building Insurance – Covers common areas like the lobby, hallways, and amenities. You still need a personal home insurance policy for your unit.
Utilities – Depending on the building, some or all of your utilities (heat, electricity, water) may be covered.
Maintenance & Repairs – Regular upkeep for shared spaces, including landscaping, snow removal, and general cleaning.
Amenities – The costs of operating and maintaining pools, gyms, party rooms, and other shared facilities.
Reserve Fund Contributions – A portion of your fees goes into a reserve fund to cover major repairs and future renovations, such as roof replacements or elevator upgrades.
Property Management Fees – Pays for the company that oversees the building’s daily operations and administration.
Security Services – Includes security guards, surveillance cameras, and other building safety measures.
Shared Equipment Costs – Covers the operation and maintenance of elevators, HVAC systems, garbage chutes, and more.
Miscellaneous Costs – Other expenses such as concierge services, pest control, and Wi-Fi in common areas.

Do you still have questions about owning a condo in Toronto? Here are a few more videos you might find helpful:

Why Do Condo Fees Increase?

Like most costs, condo maintenance fees tend to rise over time. Here are the most common reasons:

Inflation – Costs for services such as utilities, security, and cleaning increase annually.
Aging Building – Older buildings require more maintenance and repairs, leading to higher fees.
Reserve Fund Shortfalls – If unexpected repairs arise and the reserve fund is underfunded, fees may be increased to compensate.
Amenity Upgrades – If the condo corporation decides to enhance or add new amenities, these costs get factored into your fees.

What Happens If You Don’t Pay Your Condo Fees?

If a unit owner defaults on their payments, the condo corporation will first send reminders and formal notices. If payments remain unpaid:

A lien can be placed on the property, which must be cleared before the unit can be sold.
The lien has “super-priority”, meaning it takes precedence over other claims, including the mortgage.
The lien may include missed payments, interest, legal fees, and collection costs.
In extreme cases, legal action can be taken, and the corporation may force the sale of the unit to recover owed fees.

Final Thoughts

While some may grumble about the cost of condo fees, they are essential for maintaining the building, protecting your investment, and ensuring the smooth operation of shared spaces.

When considering a condo purchase, always review the condo corporation’s financial documents (often included in the status certificate) to understand current fees and projected increases. Consulting a real estate lawyer can also provide added clarity.

If you have any questions about condo fees or anything real estate-related, don’t hesitate to reach out. I’d love to help you make informed decisions! Fill out the form on this pace, call 416-909-9235, or email info@yaelandco.com today!