Let’s take a look first at how condo fees are determined and what they may pay for. This may include but not limited to:
- Up-keeping and maintenance expenses of the building
- Snow removal
- Grass cutting in front/back yard
- Future reserve fund upkeep projects planned
- Utilities Expenses
- Other professional service providers (elevators, pest control, garbage removal, carpet cleaning, garage cleaning etc)
- Professional fees from accountant and property managements
- Construction type of the home
- Age of the building
- Direction/Motivation of the condo corporation (board)
- Legal responsibilities (outstanding law suits judgements)
- Size of the building (how many units contribute to the expense)
- Special interest amenities (Social Rooms, Pools or gyms)
Average 1 Bed for a home around 600 sqft should be ~$200-250 in the first 5 years, $300-350 with homes 5-10 years and if older $350 and up depending on various factors.
Average condo fees for 2 bed 2 bath 900-1000 sqft condo, 5 years old or less ranges $350-450. 5-10 years $450-550 and older usually $550 and go up due to higher expenses with upcoming replacement costs being adjusted and saved in the reserve fund contributions.
A potential buyer have to ask the following:
- What is my condo fee paying towards?
- What projects have been paid for by the reserve fund over the last 3-5 years?
- What projects are being currently paid out of the reserve this coming year?
- What future projects are being planned?
- What utilities are being covered and how does the board manage any fluctuation in the expense?
- Are there any special amenities area that the fees help pay the maintenance for?
End of the days a higher condo fees maybe a good thing if it shows the corporation is thinking ahead and preparing for future projects accordingly. I almost caution against homes that appear too low in their fees as that raises the question how funds will be obtained to pay for any upgrades/repairs due.