We recently got this question from an owner at one of the communities we manage and thought it was absolutely worthy of its own blog post. The question was 'what do my condo fees actually cover'?
Now of course this will vary from community to community, but we'll try and narrow down a few common costs typically factors into condominium fees.
Building maintenance is typically a large portion of those fees. Superintendents, cleaners, contractors, and landscapers are only a few of the different people it takes to keep your community running. In addition to paying those lovely people, your fees will also help with the general maintenance and upkeep of the community as well.
Community dependant, utilities can also be some of those fees as well. At times the condo fees can cover just water. Others pay for all utilities including internet and tv. Some pay for nearly nothing at all. More often than not, some of your fees are being budgeted for the cost of some utilities.
Every condominium will allocate a portion of the fees you pay towards the reserve fund. The reserve fund is in short an emergency savings account for your building. It is mandatory for all condo corporation to have, to ensure that they'll be able to cover any unexpected or large scale repair work.
In terms of individual fee amounts, they vary based on many factors. Location, and age of building are two big ones. Location for obvious reasons (unfortunately some areas just are more expensive), but age plays a large factor because an older building typically requires higher maintenance fees. Amenities offered can also play a huge role in the flux of condo fees from building to building.