Your condo fees are divided into three main categories: utilities, common areas and the reserve fund. Let’s take a closer look.
A chunk of your condo fee goes to utilities such as water, hydro and sometimes heat – but this isn’t always the case. Most brand-new condominiums are now being built with individual heat pumps that are controlled by, and paid for by individual owners. Make sure you’re clear on your condo fees before you buy.
The more amenities your condo has, the higher your condo fees will be. Think pool, gym, hobby rooms, sports courts, an in-house theater indoor and outdoor areas. Ask yourself if you’re going to actually use all of the amenities offered by your condo, because you’ll be paying for them.
Condo fees also pay for snow and garbage removal, cleaning and minor repairs of common areas, exterior window washing and the like.
What is the Reserve Fund?
A portion of your condo fee is set aside in a reserve fund, which every condo board must maintain as a savings account for big-ticket items that inevitably arise. A roof replacement can cost upwards of half a million dollars, so this fund is essential.
