Toronto Condos & Maintenance Fees: What Do I Need to Know?
If you are thinking about buying a condo, especially for the first time, you will probably have a lot of questions about maintenance fees. Also called condo fees, these monthly costs differ, and cover different things, depending on the unit and building. Naturally there are many Frequently Asked Questions regarding maintenance fees in Toronto.
So let’s answer some common questions about maintenance fees in Toronto condos:
- What do condo fees actually pay for?
Each building is different when it comes to which utilities are included. (Heat, water, hydro, air conditioning, etc). Read the MLS listing of a property you’re interested in to see what exactly is included/excluded from that condo’s monthly fees. Some buildings will cover more of these than others, so check how much the fee is and what it pays for. Then you can decide if it is fair and comparable to other buildings in the area and units in your price range.
They also cover building maintenance such as elevators, exterior walkways, gardens, and other ongoing upkeep of the interior and exterior of the entire building (and the people who manage this/actually do these tasks)! Then there is the reserve fund, where money is saved in case more significant repairs are needed. Finally, on a less boring note, they cover your building’s shared amenities including pools and gyms, rooftop BBQ terraces, and more of the things people love about condo living!
- What is the average cost of maintenance fees?
Condo fees are calculated by square footage, though some buildings charge the same fee for all units. Most often, however, the fees are based on cost per square foot. The average changes of course, but in Toronto it can be from less than $0.50 per square foot up to over $1 per sq ft. So, with that being said…
- How can I find a building with lower fees?
If you want to pay less per month, consider these factors:
(1) Building Size. A taller tower has more residents, and therefore more people to share the costs. If you want to pay less, choose a building with more storeys.
(2) Unit Size. Since maintenance fees usually are based on square footage, if you want to pay less consider buying a smaller condo unit.
(3) Amenities. A long list of amenities takes more money to keep up. Some amenities are also more expensive than others (we’re looking at you rooftop swimming pools).
(4) Age. If a building is older it takes more to keep it up. So, even if your hard loft doesn’t have a gym, the heritage structure still costs more to maintain than a newer building.
- How do maintenance fees compare to the monthly costs of owning a house?
First of all, there are many misconceptions about condo fees, most notably that “it’s like paying rent for what you already own.” It’s not “rent.” It’s bills. You will continue paying bills on what you own with any type of property- that’s sadly unavoidable! If you own a house you pay monthly bills including heat, water, hydro, cable, insurance, and so on. Houses cost more over time, and are unpredictable, which brings us to…
Final Notes:
- With a house, you pay for unexpected costs, such as a basement flood or roof repairs. These issues are not only unpleasant and time consuming to deal with, but they can be very costly (think many thousands without warning). Therefore, with a house you also need to keep more savings in the bank in case of emergency.
- For many people’s lifestyle, not having to worry about the many ongoing costs and unexpected repairs needed for house ownership is a weight off their shoulders. With a condo, they can pay their monthly fee and not have to worry about directly dealing with maintenance and surprise repairs.
- Also, if you wanted the kind of amenities condos come with at a house it would cost a lot to maintain (not to mention time and energy to maintain), so most houses aren’t going to have those exciting amenities. Some are also mostly unique to condos, like a concierge and security guards.
Still have questions? Contact us to chat about what you can afford and about the current fees at specific buildings.
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