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Understanding Condo Fees

As the owner of a condominium, you’re paying for the condo itself plus the space shared with your neighbors. Everyone knows there are fees, but here’s a guy to understanding the details of those fees.

Calculation of Condo Fees

The association you belong to will set the maintenance budget and annual operating budget. The amount of these fees can depend on several factors, such as the location, how old the building is, and the amount of maintenance required. This may also include amenities and electricity and heating.

Plus, there’s money that must be saved for the reserve fund for repair of items like siding, fencing, and roofing. A reserve study is done every three to five years to determine how much should be set aside for this future maintenance. The amount also depends on the condo complex’s size.

After these expenses have been calculated each year, a fee is assessed for owners based on their unit’s square footage.

You’re Say in the Cost

As an owner in your corporation, you have input into the way your condo fee is spent. The association you’re a part of is run by the volunteer board’s president. If the association is working with a condo management company, a fee will be paid to the company for paying bills and overseeing maintenance. But the board members should be approachable anytime an owner has a question or concern. So although the board and condo management company are running the community, it’s still a democracy and you have a vote and a voice. Speak up if you have a concern about our fees.

Additional Costs

You might also experience special assessment fees for replacements, repairs, upgrades, or other maintenance that go above what is provided for in the reserve fund. Although special assessments are usually voted on by residents in the community, sometimes their emergency nature can means the meetings are impromptu and the assessments are costly. Since you’re an owner, you still hold responsibility for maintenance and unexpected repairs.

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