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What do condo fees pay for?
When buying a condo unit, you may be astounded to discover that beyond your advance payment, you need to budget for extra payment every month which will cover a sort of fees, it is not normally cheap.
Condo expenses, popularly known as strata expenses, are non-negotiable and mandatory fees, which every condo owner needs to pay to the condo corporation. What condo owner pay for and the cost differs from one condo to another, however here is an outline of what you might be looking at.
What exactly do your condo charges pay for?
Precisely what the condos expenses will pay for differs, however normally they will: partly cover your services, pay for area maintenance as well as add to the condo reserve fund. It is not unusual for the condo expenses to partly cover hydro and water, and most of the times even heat. In older condos, heat is centrally situated and is costly to operate; therefore the expense of heating is frequently divided equally amongst the rooms based on sizes. Newer condos don’t include heat, particularly if rooms have heat pump systems.
Condo expenses also serve as your payment to the maintenance and operation of all common placed in the condo such as the gym, snow and trash removal facility, gym, repairs etc. Part of the expenses will be added to the reserve fund that is an emergency savings account for the building. It is mandatory that the condo have a reserve fund to make sure the corporation have enough resources for unexpected replacements and repairs.
The amount of expenses differ, and not only from condo to condo, but also state to state. Like for instance, condo in Toronto, the typical condo expenses are 0.55 dollars to 0.65 dollar for every square foot, however in Vancouver the typical condo fees are 0.30 dollars to .40 dollars for every square foot.
Apart from location other factors that affect the monthly condo fees include the size of the condo, the age as well as the amenities on hand.
For instance, the dimension of the condo might or might not add to the monthly condo expenses. It is not the case always, however bigger condors tend to have lower monthly expenses, as general expenses are divided between more rooms.
Older rooms tend to have costly charges, since common factors might require be replacing or fixing on a regular basis compared to newer condo. But, some newer condo which is equipped with many amenities might have costly fees because amenity maintenance could be expensive.
Swimming pools, party rooms and fitness facilities are common features of lots of condo in Canada, and the expense of operation and maintenance of the amenities are shouldered by the owners through condo expenses.
Some owners of condo unit don’t know that their fees could increase without prior notice. The monthly charges you disburse are controlled by the board, and they are capable to alter the expenses at their caution. If you are planning to purchase a condo, it is wise to ensure you can pay for the existing condo fees and possible increase as well.
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