Many first-time condo buyers resent maintenance fees. Our clients feel maintenance fees are “cash grabs” and seem mysterious. This is, however, far from the truth. Maintenance fees are essential to the health of the condo building. Let’s get into what they are.

Maintenance fees are a necessary part of condo ownership, and they play a crucial role in keeping the building and its amenities in good condition. While they may seem like an additional expense on top of mortgage payments, property taxes, and other housing costs, they are essential for ensuring that your condo remains safe, comfortable, and attractive.

What are maintenance fees?

Maintenance fees are calculated by dividing your total square footage (including parking and locker) by the yearly operating budget so that your payment matches exactly the share of your ownership in the building. Your total yearly fee is then divided into twelve months so that you can make twelve equal payments. All buildings are registered as not-for-profits, so all your maintenance fees go towards the maintenance of the building (which is, after all, your asset).

While the maintenance fees you pay will vary depending on the size, age, and amenities of your building, you can generally expect to pay anywhere from a few hundred to several thousand dollars per month. This may seem like a lot, but it’s important to remember that maintenance fees are a shared expense that all condo owners pay. They are calculated to cover the cost of maintaining and operating the building and its amenities.

What are maintenance fees cover?

The exact expenses covered by maintenance fees can vary from building to building, but in general, they cover six main categories of costs:

1. Interior and exterior maintenance

This includes everything from cleaning the common areas, such as hallways and elevators, to maintaining the building’s exterior, such as fixing cracks in the walls and cleaning the windows. Keeping the building in good repair not only ensures that it looks nice but also helps prevent more severe maintenance issues.

2. Utilities

Most condo fees include some of your utilities. Some older buildings also include hydro. By pooling the costs of these services across all residents, the condo corporation can secure better rates.

3. Reserve fund

A portion of all your maintenance fees go towards the reserve fund. This fund ensures that there is always cash on hand in case of significant expenses, such as major repairs or upgrades to the building’s infrastructure. A healthy reserve fund is the sign of a well-run building, and it can help ensure that you don’t face unexpected costs or assessments down the line.

4. Insurance

Most buildings will include a blanket insurance policy on the whole building. However, if you need a mortgage on your property, the mortgage company often insists you get a more comprehensive policy. This protects you and the building in case of damage or other issues.

5. Security

This could include keeping the lights on in shared spaces, having a concierge, installing a buzzer system, or having security personnel on-site. These measures help ensure that the building is secure and that residents feel safe.

6. Amenities

Many condos offer amenities such as a gym, theatre room, rooftop terrace, and pool. These features can make condo living more enjoyable and convenient but require ongoing maintenance and upkeep.

★ Thinking of buying a condo? Read this blog as a reminder of something you should always do:
Why you should ALWAYS review a status certificate

Maintenance fees cover a wide range of expenses necessary to keep the building and its amenities in good condition. While some condos have higher maintenance fees than others, it’s important to remember that these fees are calculated based on the specific needs of your building.

Here’s the most important reason to love (strong word..) paying maintenance fees.. They help maintain the resale value of the building and your unit. A poorly-run building will not sell well, just as a run-down house will not sell for the total potential value.

There is no such thing as owning a property and not paying maintenance. You either own a home and pay on your own schedule, or you own a condo and pay monthly. Either way, you will be paying maintenance. Owning a condo is a more stress-free way of maintaining your space than a condo.

Our team can provide you with a home sale or purchase that’s both enjoyable and successful. Click here to send us an email or call 416-788-1823.