What is in a condo fee?

Maintenance - current and future

Because the property outside of your unit, whether a townhouse or apartment, is owned in common by all the owners, all the owners also share the cost of maintaining that "common element". This includes both current maintenance and a budget for future maintenance.

So when you look at a listing, one item that should always be listed under condo fees will be "Building Maintenance". This includes lawncare, snow removal in the winter, cleaning services in apartment buildings, and other regular items, as well as emergency items such as foundation leaks. If the condo has significant amenities included (private library, swimming pool, fitness room, concierge, etc.), these will be included in the budget as well.

A portion of the condo fee will also go into the condo corporation's Reserve Fund, which is a regulated and legally-required fund to pay for future repairs such as roof replacement, window upgrades, resurfacing parking, elevators in apartment buildings, and so on. As a homeowner, you have to budget for these type of exterior maintenance items, anyways. But with a condo fee, you don't need to worry about whether the money will be there when it's needed - someone else is taking care of that.

Insurance

Condo corporations also keep an insurance policy that covers the entire exterior of the building, and often the interior of units as well (to original condition, not covering upgrades an owner may have done since, such as a finished basement). So when you get your homeowners' insurance, you're going to find that you're in a different classification.

Rather than a usual home policy, you'll get a condo policy, which is more similar to what a renter in an apartment would get. Your policy only needs to cover your personal belongings and any major upgrades you've done to the unit. This makes the price tag on the insurance policy much less. Rather than a typical $700-1000, you're probably looking at $200-400. Actual figures will vary depending on your household, but will always be less in a condo than a full home where your policy covers the building as well.

Other Items

From there, you start to get a variety of what is included in condo fees. Many buildings will include heat (due to central heating systems), and sometimes even hydro. Water is often included in both townhouses complexes and buildings. Cable is not unusual, either.

So when you look at any given condo fee, you have to consider both the dollar value being charged and what you are getting for it. Figure out the extra cost on insurance, cable, water, and whatever inclusions there are, if it were not a condo. In some cases, you may find that the condo fee more than pays for itself. Not to mention the benefit of never having the mow the lawn or pick up a snow shovel.

If you have any questions about condo owndership, or have any other real estate questions, please call me at 905-512-4069 or email Jeff@JeffSellsHomes.ca