fees
Jordon Scrinko
Published by Jordon Scrinko
Last Updated On: May 14, 2024

What Do Maintenance Fees Include for Condos?

Deciding to rent a condominium involves more than just covering your monthly rent; it also includes understanding and budgeting for condo maintenance fees.

As a real estate professional with years of experience in the condo market, I’ve seen how these fees can sometimes catch tenants and new owners by surprise.

Beyond just keeping the building looking good, these fees also cover some of the less visible, yet critical aspects of a condo’s upkeep such as building insurance, security systems, and sometimes even utilities like water and heat.

Let’s dive deeper into what you can expect from your condo maintenance fees and how they contribute to your living experience.

Quick Summary

  • Condo maintenance fees typically cover building maintenance and repairs, utilities for common areas, landscaping and snow removal, amenities like pools and gyms, building insurance, contributions to a reserve fund for future large repairs, and more.
  • Purchasing extras like parking spots or lockers can increase monthly maintenance fees by a flat rate, with parking costing an extra $50 to $100 per month and lockers adding another $15 to $25 per month.
  • Older buildings tend to have higher maintenance fees due to increased needs for repairs and updates to keep the building up to code and maintain its functionality and appearance.

What Do the Condo Maintenance Fees Cover?

The condo building and condo common areas or common elements require regular upkeep and maintenance. Usually, monthly costs spring up towards such maintenance.

Every condominium complex has a condo board. Condo owners come together and establish a board that determines the average condo maintenance fees, also known as the monthly maintenance fees.

The condo board creates a reserve fund from the monthly maintenance fee it charges each condominium. Either the condo owner or a tenant pays such maintenance fees.

The condo corporation is the authority governing this reserve fund. The corporation decides on the amount of monthly fees and what expenses the condo maintenance fees should include.

The reserve fund health of any condo complex determines how financially prepared it is to face emergency situations. This corporation uses the reserve fund in a variety of ways. It is common practice to create a savings account for this fund and use it in a piecemeal fashion in the near future.

Usually, the maintenance covers the cost of repairs and maintenance of the condominium property. This includes the interiors of each condo unit as well as the common area surrounding the complex. Often, these condo fees are higher for older buildings. This is because as the building ages, the average condo maintenance fee goes slightly up.


What Do the Maintenance Fees Include?

Maintenance fees of a Toronto condo will include areas like the upkeep of the in-house theatre, the development of a proper garbage removal system, and any other additional cost needed to undertake unexpected repairs.

Many a time, roof replacement is an area of expense too. Snow removal is another avenue that needs some financing.

Ultimately, as a tenant, you pay condominium maintenance fees according to the age of the property and the amenities your condo has. Therefore, you pay condo fees at a higher rate for more amenities.


How to Determine the Maintenance Fees?

Your real estate agent or property management agent will usually explain the details of your condominium fees and what they cover [1].

The available square footage in your condo determines the amount of monthly fee. So, the condo association charges condos fees as a standard amount of money per square foot.

Your condo maintenance fees are directly proportional to the total square foot area of your unit. In case of any dispute, a real estate lawyer will intervene to try to resolve it.


What Is the Condominium Owner’s Contribution?

The condominium owner pays a fixed amount which gets added to the building’s reserve fund. They also contribute towards condo buildings insurance.

Sometimes, expenses other than repairs crop up. If the condominium landlord wishes to sell off his property, among other things, they need to complete a lot of paperwork.

They will first have to obtain a status certificate and put all papers regarding their monthly mortgage and the price of the purchase in order.

The condo’s status certificate reflects its financial condition and that of the corporation it belongs to, as well.

There is also the question of property taxes and condo insurance.

Though condominium maintenance fees include a majority of the repairs, building insurance is necessary for sudden losses arising from natural calamities. For instance, the real estate sector is quite prone to disasters like earthquakes, fires, floods, etc. and insurance takes care of losses and damage arising due to these.


Do the Maintenance Fees Include Condominium Insurance?

Condominium insurance helps the owner undertake major repairs and keep their personal belongings safe. Lastly, sometimes special assessments of the property require professional services. Thus, these are factors requiring a monthly expense that the condo fees cover is insufficient.

It, therefore, makes sense that condo living includes the cost of repairs and regular maintenance charges. In the cases where a tenant is living, they become responsible for bearing such costs.

Such maintenance charges in Toronto cover pretty much all expenses related to the upkeep of the property.

Most Toronto condominiums come equipped with a varied range of amenities, some of which are in the luxury category. It makes sense that if a tenant is using or consuming the facilities, they also pay up to keep them in good shape.


What Amenities Include Maintenance Fees?

A Toronto condo is pretty much an upmarket real estate destination, and most individuals would consider renting or living in such a property a matter of pride and prestige [2].

In addition, almost all such units have best-in-class amenities. These are quite luxurious and fancy.

If a unit owner has leased out their property, they are not there to enjoy such high-end facilities, though the condo owner pays for the same; the purchase price they have paid covers the cost of all these amenities.

It is obviously both logical and fair that they pass on the expense of upkeep and maintenance of all such amenities to the individual renting the property.

It thus becomes the responsibility of tenants to pay condo maintenance fees.

This is not to say that such maintenance charges don’t have their own upside. They do, actually.

People renting a condominium end up saving on numerous areas and aspects of their condominium living.

Facilities like squash courts, theatre systems, and gyms are already available in the complex. So the tenant need not pay more for them elsewhere.

Then again, most condominiums have central locations that are quite close or (sometimes) within the heart of big cities.

Workplaces and commercial complexes are usually within walking distance. If not, there is a well-connected transport system nearby. Thus, the tenant also ends up saving on transportation costs.

To sum things up, maintenance charges for tenants of a condominium are a necessary expense, but they have their advantages too. For more information, contact the PreCondo Team today.

References:

  1. https://www.ratehub.ca/condo-fees
  2. https://www.clicbrics.com/blog/guide-to-apartment-maintenance-fees

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