If you’re thinking of buying a condominium, you may have questions about the maintenance fees associated with your purchase. While it’s common knowledge that these monthly costs go towards paying for the convenience of condo living, few buyers are aware of the specifics.
Before you purchase a unit, you should have a full understanding of the fees you’ll be charged, where (precisely) they’ll be going, and the services you can expect in return. Obtaining this information is one of the keys to making an informed condo purchase—one that will work for your budget and lifestyle.
If you’re ready to buy a unit, here’s what you need to know about monthly condo maintenance fees…
What do they cover?
One of the best things about condo living is the low-maintenance lifestyle it provides. Whereas owning a single-family home comes with many responsibilities—from landscaping and snow removal to ensuring that your HVAC system and roof are in good working order—a condo owner need only worry about maintaining their unit. General upkeep of the building is paid for through monthly maintenance fees. This includes common areas (like your lobbies and hallways) along with shared amenities (such as pools and exercise rooms).
A sizeable portion of your condo maintenance fees will also go towards a reserve fund. In the simplest terms, this is a sum of money set aside by your condo board to pay for emergency building repairs that may arise in the future. Lastly, part of your fees will cover utilities. It’s important to know what’s covered and what isn’t, as some buildings may exclude basics such as hydro.
How much are they?
The cost of your condo fees can depend on a range of factors, including the age and condition of the development you live in. Older buildings sometimes charge higher sums because their components and systems may be more likely to break down or need replacing. Having said that, new condos often offer access to state-of-the-art amenities, which may be costlier to maintain—and result in higher fees.
The size of your building and suite may also play a role in how much you’ll pay each month. As a very general rule, larger developments tend to charge lower fees because there are more units to split the maintenance costs. In contrast, having greater square footage than other suites in your building can mean paying more each month. Larger units typically have a higher assessed value than smaller ones, and you may be charged more as a result.
Given the number of factors involved in calculating condo fees, it’s difficult to say how much you can expect to pay on average. Very generally, you’ll probably be charged between 50 cents and a dollar per square foot in Toronto—though some buildings do charge more.
Things to be aware of
While condo fees tend to cover three major expenses (maintaining common areas, caring for shared amenities, and at least some portion of your utilities) there may be other assorted costs included. The only way to be sure about what this monthly sum will pay for is by carefully reviewing your status certificate. In this document, you’ll find crucial information about your building—including a breakdown of your maintenance fees.
Lastly, you should be aware that your fees can rise, and that increases may occur without warning. It’s a building’s condo board that ultimately determines how much unit owners will pay each month, and its members can decide to raise this amount at any time. Fortunately, leaving a bit of room in your budget to cover possible increases (along with any other unexpected issues that may come up) will help protect you against future financial strain.
In short, condo living offers a low-hassle lifestyle and can provide many day-to-day perks—such as first-class amenities. While most unit owners feel that the value they receive in exchange for their monthly fees is more than worth the cost, it’s important that you understand how much you’ll be charged if you buy a unit—and what (exactly) you’ll be paying for. If you have questions about maintenance fees (or other aspects of condo ownership) a real estate agent with the right expertise will be pleased to answer them!
Ready to buy the condo of your dreams? Reach out to start the process, and we’ll take the first step together!