Deciphering Condo Fees

Condominiums offer homeowners great benefits such as access to onsite amenities, enhanced security, and fewer maintenance responsibilities than a stand-alone house. It’s no wonder that more and more Albertans are considering the condo lifestyle. These advantages are made possible by condo fees, a monthly payment made to the condo board. In this week’s article, we are going to decipher what these fees entail and what that means for condo owners.

Utilities

Depending on the set up in your condo building, the condo fees may cover a portion of your utilities. That being said, be aware that older buildings may have centrally controlled heat. In these cases, the total amount will be split evenly between each unit based on square footage.

Reserve Fund

According to the Condominium Property Act, all condo buildings must have a reserve fund in case of an emergency. Because of this, a portion of your condos fees will go towards this fund. To be clear, this money can only be used for unexpected repairs, not regular wear and tear. Standard maintenance has its own budget which your condo fees also pay into.

Common Area Maintenance

Areas like the lobby, parking garage, and shared outdoor spaces are all considered common areas. Maintenance of these areas is paid for through the third and final portion of your condo fees. This also includes paying for services like trash and snow removal.

Additional Considerations

The total cost of condo fees is dependent on the size of the building, available amenities, and even the age of the building. Even after you move in, however, condo fees can increase with little to no notice. Actively participating in your own condo board is key to staying on top of changes and being involved in the decision process.

For many Albertans, condo living is convenient, affordable, and fits their needs. Deciphering condo fees is the first step to determining if this type of living situation is right for you! For those in Red Deer and surrounding areas, our team of experts can help you navigate the exciting world of condo homeownership. Book a consultation with us today!