Toronto houses some of the best condos in the world. If you are on the lookout to live a condominium lifestyle in the city, then you are indeed in the right place. With favourable market conditions and excellent lifestyle benefits, condos are attracting an increasing number of buyers.
It’s cheaper to own a condo compared with a townhouse. However, you’ll need to consider condo maintenance fees. Along with your purchase fee, there are other condo maintenance fees to consider long-term. Researching these in advance will help you make a more informed purchase.
Here’s a breakdown of all the condo maintenance fees you need to know about if you’re planning on buying a condo in Toronto.
Average Condo Maintenance Fees – Entertainment District, Toronto
The maintenance fees that you have to pay as an owner every month can dent your budget.
The above pictorial shows the steady increase in maintenance monthly fees that Toronto residents have seen between 2010 and 2019. The maintenance fees have jumped from 51 cents to 63 cents per square foot.
It might not sound a lot, but when you factor in all other costs associated with home ownership fees – maintenance fees can soon add up. However, it’s worth mentioning that although condos have maintenance fees, they still work out cheaper than townhouses overall.
For first-time buyers, the concept of maintenance fees might seem daunting. However, it’s good to remember that many driving factors can affect the total amount. Plus, if you create a reserve fund on the side, this could help with costs later down the line.
Let’s break down these variables in more detail.
Toronto Condo Maintenance Fees: Breaking it Down
The condo maintenance fees you’ll need to pay go towards your share of running costs for the whole building. There is a lot that condo maintenance covers. The utilities, amenities, property management, location, and even the age of the condo are all included in the amount.
Here’s an excellent video that explains the fees in more detail. We’ll also be breaking the fees down below in the next sections.
1. Condo Facilities
Your building may come with additional security, underground parking facilities, concierge services, fitness centers, a pool, and even a rooftop patio and more.
With the extra facilities included in your Toronto condo, comes additional costs set by the condo board. However, keep in mind that facilities such as underground parking and concierge services are mostly optional.
Additionally, there is a contingency fee in Toronto which is mandatory for every condominium in the city. [1]
This amount is kept as reserved funds to be used in case of unexpected expenses. This includes scenarios such as roof damage or flooding.
To sum up, when purchasing a condo you are required to pay a monthly mandatory fee. This fee is non-negotiable and covers a broad range of expenses.
“The existence of contingency fees is critical in opening the doors to justice for all Ontarians, no matter your financial situation.”
– Malcolm Mercer, Chair of the Law Society’s Advertising and Fee Arrangements Issues
The condominium fees include the utilities, reserve fund and maintenance charges. This also covers the common areas that you have access to.
To be on the safe side, it’s better to finalize the condo purchase after consulting with your realtor or lawyer. It will allow you to discover the features and determine whether the extra condo maintenance fees are worth your investment. It’s better than getting surprised by the fees for amenities you won’t use anyway.
If you’re thinking of investing in a Toronto condo, then it’s better to do proper research on the management company and developer. Go with a company that has a great reputation, and be sure to consult your real estate lawyer.
Maintenance costs will proportionally increase with the rate of inflation.
Many Toronto condo buyers forget to realize that fees are to be paid monthly. The amount is not fixed and can change according to the board’s discretion.
There are a lot of buyers in Toronto who look for condos with lower condo maintenance fees to manage their mortgage amount. In some cases, the cost of the whole unit may be reduced to maintain the said charges.
2. Size and Age Of The Condo Building
The size of the condo building can make a significant dent in your budget as well. If two similar structures require a roof repair, irrespective of the floors, it will cost the same.
The age of the building can also greatly affect maintenance fees per month. Newer buildings require less upkeep. However, older buildings will require a lot more attention and therefore will incur higher costs.
The cost of renovation will be another factor to add to the expenses. For example, if the main entrance requires rebuilding, it will be added to your monthly maintenance fees as it’s a shared space for condo owners.
However, newer buildings are not completely exempt when it comes to maintenance fees. With the rise in competition in the real estate business, many condominiums in Toronto are using low-grade materials for construction. Cutting corners on common elements may deliver lower prices initially, but could cause further problems down the line.
The overall costs of repairs and maintenance of the common spaces will be shared among all tenants. However, with the increase in the number of residents, this could lead to more wear and tear of the building. This is especially the case with older buildings. So, there are pros and cons on both sides of the debate.
3. The Condo Building’s Status Certificate
Getting a status certificate of the building could prove to be very beneficial. It offers vital information about the financial state of the company.
Additionally, it will also include the total budget, details on reserve funds and information on any legal matters. This could include details of special assessments. The status certificate also provides information about Toronto’s current condo maintenance fees. In addition, it will give you an estimation of future fees too.
4. Other Fees To Consider
Depending on the condo you buy or rent there could be additional expenses per month. The standard per month fees in Toronto cover the gas, hydro, and cable connection in one condo. However, other areas of Canada may have metered units for everything.
With the many factors playing a significant role in your condo monthly fees, it can be tricky to calculate the exact estimate of the costs involved. The total square footage is a contributing factor. In Toronto, the average price of condominium charges comes in at around $0.50 per square foot. However, it can range up to $1 per square foot and above.
With a larger condo, the monthly maintenance fees for unit owners will be higher. However, there is no upper cap limit for the expenses that you have to pay monthly. This is because budget costs are decided by the board of directors at the individual condo.
However, the maintenance fees are a concern for every homeowner. Mainly, it manages to cover a lot of condo expenses from damages, repairs, and a lot of other requirements.
Even as a regular house owner in Toronto, the maintenance fees can vary a lot depending on the condition of the condo. If it’s in poor condition, you will be hit with a repair bill. [2]
The average cost of condominiums in Toronto rose from $510,000 to about $558,000 from last year. This means that to be able to afford a condo, buyers would need to have a minimum income of $100,000.
Furthermore, there are tough regulations to qualify for a mortgage in the first place. To cover all bases, it’s worth building a reserve fund for the condo maintenance fees.
According to a recent study, the average condo fee in Toronto buildings spiked 2.5 percent in two years.
If we take into consideration a 594 square-foot property, then the average maintenance fees are about $386.60. However, the standard fees for larger condos stood at about $881.20 monthly.
Additionally, with more facilities in the building, expect the highest condo maintenance fees in Toronto. The fees cover water, heat, air conditioning, and connection for hydro. If you pay for all these utilities separately, you might face an even bigger bill. Plus, there’s upkeep of common areas to consider too.
Are Condo Maintenance Fees in Toronto Increasing?
To get a proper estimate of the monthly condo maintenance fees in the city, you may need to put aside some time to research your purchase. Plus, build a reserve fund to cover unexpected expenses. Understanding how much condo maintenance fees are in total can be confusing. It largely depends on the condo corporation you choose. However, what is certain is that the fees for condo owners are increasing.
But, with a thorough evaluation of the corporation and included facilities, here at Precondo we believe that you can make an informed decision about your purchase.
We hope that we helped you understand the monthly costs involved when purchasing condos in Toronto. If you’d like to find out more about condos in Toronto, drop us an email and our friendly experienced team will get back to you. We look forward to assisting you with your Toronto condo purchase!
References:
1. Cision, Law Society publishes recommendations on contingency fees, retrieved from https://www.newswire.ca/news-releases/law-society-publishes-recommendations-on-contingency-fees-656647103.html
2. Tess Kalinowski, Rise in condo maintenance fees slowed last year, says the study, retrieved from https://www.thestar.com/business/real_estate/2018/01/17/rise-in-condo-maintenance-fees-slowed-last-year-says-study.html
