Condos are an extremely popular choice among GTA homebuyers, and not just because they’re a great investment. The right unit can provide a low-maintenance lifestyle, access to top-notch amenities, and the peace of mind that comes with living in a secure environment. While these benefits are highly attractive, there’s one aspect of condo living that can create confusion among first-time buyers—and that’s maintenance fees.
If you’re thinking of purchasing a unit, it’s important to be aware of the monthly costs you’ll be expected to pay. In this post, we’ll provide a straightforward breakdown of maintenance fees (also known as condo fees) to help you understand where your money will go.
Buying a condo in Toronto? Our strategic advisory services can help you achieve a smooth purchase. Call us at 416.441.2888 or reach us by email at evan@christensengroup.ca.
What Do Condo Fees Cover?
What do condo fees cover? This is one of the biggest questions prospective buyers ask when they start looking for a unit. While every building is different, here are the most common costs included in those monthly fees.
Condo Utilities
Condo maintenance fees usually cover water. Heating is often included, while hydro and central air may or may not be. In some cases, buyers are surprised to find that cable and internet costs are also built into their fees. For budgeting purposes, it’s crucial to know what you’ll be paying for out of pocket. Be sure to ask about which utilities will be covered in your fees for each and every building you look at.
Common elements
Put simply, common elements are the shared spaces within a building. A sizeable portion of your condo fees will almost certainly go towards maintaining these areas. Common elements may include (but won’t necessarily be limited to) hallways, lobbies, elevators, amenities, and the grounds around your building.
One of the best things about living in a condo is avoiding the hassle of ongoing upkeep. Your monthly fees will help ensure that your elevator always works and the snow outside of your building is shovelled. That said, you’ll likely be responsible for some maintenance within your own unit. When in doubt, ask the condo corporation.
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- Should You Keep Your Condo as an Investment Property?
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- Is Condo Living Right For Your Family?
Reserve Funds
A portion of your monthly fees will go towards your building’s reserve fund, which is basically a sum of money set aside for unexpected repairs. If the roof or boiler in your building needs to be replaced, your condo board can use some of this cash to pay for it. Before you buy into a building, knowing how much money is in its reserve fund can also help you understand its financial health.
How much will my condo fees be?
Recent average condo fees in the GTA sit somewhere between 60 and 70 cents per square foot. That said, they vary significantly from one building to the next. Here are some of the biggest factors that can impact what you’ll pay.
The age of your condo building
Units in older buildings often come with higher fees than those in newer buildings. The reason is simple: aging materials and systems typically need to be repaired or replaced more often than those that are brand new. Of course, it’s not a hard-and-fast rule that older buildings charge more.
Your condo building’s size
In a larger building, there are usually more units—and more owners to split overall costs. The fees that each condo owner pays will often be lower as a result.
The amenities included in the condo
Amenities—such as pools, saunas, exercise rooms, and yoga studios—require ongoing cleaning and maintenance. Often, the more amenities a building has, the higher the condo fees will be in order to pay for upkeep.
Planning on downsizing to a condo? Consider these blogs for more helpful insights.
- Should I Keep My Toronto Home When I Downsize?
- How to Downsize Without Hassle
- Should You Downsize Before Retirement?
Your condo unit’s square footage
Generally speaking, the larger your unit is, the higher your condo fees will be. You’ll typically be charged on a cost-per-square-foot basis. So if you have a little bit more space than your neighbour across the hall, you’ll likely be paying more in monthly fees.
The bottom line on condo fees
It may seem like you’ll save money if you choose a unit in a building that charges low monthly condo fees. The reality isn’t so simple. In truth, lower fees are often paired with a higher unit sale price, which means it’s possible to wind up paying more overall in a building that charges low fees. It’s also important to take your unique needs into account. How important is it for you to have a large unit, or access to upscale amenities?
Once you know what’s included in the condo fees for a given unit, you can make a more informed decision about whether it’s a viable option for you. Check a condo’s status certificate or disclosure statement for a breakdown of the maintenance fees associated with it. A real estate agent with extensive condo market experience can answer any questions you might have.
Looking to buy or invest in Toronto real estate? Our strategic advisory services can help you achieve a smooth home purchase or sale. Call us at 416.441.2888 or reach us by email at evan@christensengroup.ca.
