CONDOMINIUMs: What are condo fees and what do they cover?

What are Condo Fees?

Condo fees refers to a levy paid by every property owner in a condominium complex to cover ongoing maintenance cost. The fee is often based on the size of the condo unit, the amenities that the building offers, and any anticipated annual expenses. Oftentimes buyers look for the property with the lowest condo fees, however, if that low fee is not covering the expenses and required savings for future repairs and upgrades, then a special assessment is inevitable. Good financial stewardship is very important to the health of a condominium corporation.

What do Condo Fees Cover?

Condo fees typically cover utilities (water, heat, garbage collection), building insurance, contribution to the reserve fund, regular maintenance and improvements to the common areas (gym, hallways, social rooms, parkade), and services for the condominium (concierge, security, cleaners, gardeners, management).

Clarity on Condominiums:

One of the biggest misconceptions about condominiums is what exactly a condominium is. Many consumers believe a condominium is an apartment-style property in a complex which offers amenities for its residence. Although this may be accurate, it is not the whole story, as a condominium can be almost anything from an apartment or townhouse to the lot under a single-family detached home or a 10-acre parcel of rural land. The reason for this is that a "condominium" is a type of corporate ownership of a project, rather than simply owning a piece of real estate.