What do condo fees cover

Review it and make sure you understand it. The fee for the status certificate? The information contained it in? Potentially worth a great deal more to your investment. What Are Condo Fees? View Larger Image. What are condo fees? The fees that each condo owner pays will often be lower as a result. Amenities—such as pools, saunas, exercise rooms, and yoga studios—require ongoing cleaning and maintenance.

Often, the more amenities a building has, the higher the condo fees will be in order to pay for upkeep. Generally speaking, the larger your unit is, the higher your condo fees will be. How important is it for you to have a large unit, or access to upscale amenities?

A real estate agent with extensive condo market experience can answer any questions you might have. Looking to invest downtown? We know the downtown Toronto condo market! Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads.

Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Your Money. Personal Finance. Your Practice. Popular Courses. Personal Finance Home Ownership. What Is a Condominium? Key Takeaways: A condo is similar to an apartment, except that it is a sellable property. Condo owners pay a fee, which covers some maintenance and other costs associated with the property, such as heat, water, sewer, and garbage collection fees.

Condo buyers should consider the condo fees before buying a condo and any special assessments that might arise that would require additional funding. Fees are typically paid monthly and are decided by a board of directors composed of condo owners. Co-owners must contribute their share of expenses to help ensure the building is properly maintained for everyone.

Moreover, if a co-owner is in payment default, he or she could be sued. The condo corporation could even be granted the right to sell a condo to recover debt if its owner is in default. The value of each unit is specified in the declaration of co-ownership as a percentage or a fraction.

Unsurprisingly, a 1, sq. In some parts of Ontario, condo fees can be overwhelmingly high. The Greater Toronto Area, for example, averages 65 cents per square foot monthly. Be sure to exercise caution, as some developers of new condos reduce fees in order to sway buyers. At some point, the condo corporation will have to increase them substantially to keep the building in good condition.

For existing buildings, condo fees that are too low could indicate that preventative maintenance is not being done and major renovations are being put off.

When a building is neglected, it loses value and puts it owners at a disadvantage. Each month, a portion of your condo fees are deposited into the reserve fund to ensure the corporation has enough money to pay for future repairs. How much money should be in your reserve fund? This way, owners know, for instance, that the roof will need to be redone in three years, the railings and stairs in ten years, etc.

The condo corporation can then adjust the amount deposited into the reserve fund accordingly, and determine a catch-up strategy if necessary.