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What Are Condo Fees and What Do They Cover?

What are Condo Fees?
Condo fees are a normal part of being a co-owner of the entire building. Every homeowner in a condo also has an equal share of the building, like a co-op, and you manage it together through a council. Your dues every month cover your share of the communal costs to run the building.
For example, part of your fees will cover general wear and tear. Instead of being responsible for the full cost of roof repairs in a single-family home, every homeowner puts in a little to keep the shared roof in good shape.

What Condo Fees Cover
Shared Utilities
Some condo buildings cover certain utility costs instead of monitoring individual unit use. Typically, shared utilities include water, natural gas, trash pickup, and sometimes services like phone, cable, and internet. If your condo does not come with a water bill, for example, the shared cost of building water is likely rolled into the condo fees that every owner pays.
Building Maintenance
Buying a separate house, you can expect to spend 1% of the property value per year on building maintenance. Roof repairs, siding replacement, plumbing and electrical repairs throughout the year, infrastructure upgrades, appliance and equipment replacements all come with a predictable cost, one covered in a handy, efficient way by the condo association and the shared cost is covered by owner dues.
Building Amenities
In addition to basic maintenance like roofing and upkeep, your condo fees also cover the maintenance and staffing of any on-site amenities like a fitness center, dog wash, or spa. Building concierge service, cleaning staff, and all those other little luxuries that come with condo living can be enjoyed by owners because they all share the split cost as part of the condo fees.
The Reserve Fund
Finally, a slice of every year's condo fees go into the reserve fund. This is your condo building's account for building upgrades and emergency repairs. Every condo association should have a well-maintained reserve fund in case of historic local storms, to cover big-ticket maintenance like roof replacement, or to save up for the next great building upgrade. You can find information a buildings reserve fund in their status certificate.

How to Assess a Condo Association's Dues Strategy
Most people don't know how to respond when they consider condo fees because it is an unfamiliar way to handle the costs of homeownership. Instead of looking at it like an 'additional' fee, consider the value you will enjoy from the amenities and the comparative cost (in time and money) of maintenance that you won't have to handle personally when you own a condo. No yard work, no calling the roofers when a leak springs.
To assess a specific condo, look at the health of their reserve fund and ask for a detailed look at their maintenance and improvement plans. Be aware of special assessments, outside-dues costs that homeowners agree to share for special projects, and how the council manages its affairs.
If you see a practical group of people sharing the costs of a building and planning for the future, the only remaining choice is whether you will feel rewarded living as part of the shared community.

RE/MAX Condos Plus Corp. Brokerage
45 Harbour Sq. Toronto, ON M5J 2G4

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