- February 14, 2023
- Posted by: @dmin
- Category: Uncategorized
Any property owner knows that picking up a condo is only the beginning.
Maintaining the common elements is necessary for the long-term value that all condo owners get to enjoy within the building, and condo maintenance fees are an important factor in this matter.
What Are Condo Maintenance Fees, Anyway?
The point of condo maintenance fees is to make sure that all condo owners participate in the upkeep of the building as well as handling the costs of the shared amenities and common elements of the Corporation. One of the benefits of buying a condo is that every owner in the building shares in the condo maintenance costs rather than everything on the shoulders of one owner.
The maintenance fee covers various elements within the condo building, including insurance, administration, utilities, contracts, amenities, repairs and maintenance along with contributing to the reserve fund for major repairs and replacements when they come due. The fees cover a lot of ground, and the monthly condo fee should bedisclosed to the buyer well before the purchase takes place.
How Are Condo Maintenance Fees Calculated?
The monthly cost varies as it is based on the proportionate shares as set out in Schedule D of the condominium’s declaration which sets out what percentage of the overall budget is allocated to your suite. This is usually calculated on the square footage of the suite, however there may be other factors as well. .
Not all condominiums are created equally. Some maintenance fees include ensuite utilities where others are separately metered and the owner pays that directly. That’s why it’s so difficult to compare maintenance fees to other condominiums. Size in this case does matter, the maintenance fees for a 300 suite condominium with the same services (24/7 concierge) would likely be less than a 100 suite condominium as a result of having more suites to amortize the cost over.
One of the benefits of condominium living is the shared costs of replacements. When the roof needs to be replaced, this is paid from the reserve funds that have already been contributed to by the owners. In a single family home, this entire cost would be borne by the homeowner.
When looking to purchase a condo unit and the amount of maintenance fees are a concern, please ensure that you do your research and determine what is actually included and if there are any other hidden costs. Ask your lawyer if the parking is deeded or exclusive use common element. This will add to the monthly fee as deeded parking or storage is often charged separately.
For more information on optimal condo management, contact us today.
Featured Photo Credit: Christian Dubovan