Linda Linfoot - Keeping You Informed
Fees May Vary
If you're shopping around for a new condo, you may be wondering why monthly fees differ so widely, from the pricey to the seemingly too-low-to-be-true. Here are a few reasons.
- Amenities. The more amenities offered, the steeper a condo's fees will likely be. It takes money to maintain those amenities and employ the staff needed — that's part of what the fees are for. So prepare to pay higher fees in condos with a pool and concierge than in condos with little in the way of common elements besides the elevator and lobby.
- Management styles. In self-managed condos, Board of Directors and volunteer residents execute daily operations. As such, fees tend to be lower than in professionally managed condos, where operations are contracted out. If a condo's fees seem suspiciously low, it may simply be that it's a small, self-managed condo.
- Financial fitness. All other factors being equal, a condo board's ability — or inability — to budget can explain the difference in fees from one condo to another. A board that ignores looming expenses or underestimates maintenance costs is one that likely sets fees at a lower rate than a board that ensures it has ample funds to cover expenses.
- Unit size. Fees vary even within a condominium, as they're proportionate to each unit's value relative to the total value of all units. So if you buy a more valuable unit in your current condominium, expect your fees to rise. And if you're looking at multiple units within a different condominium, don't expect their monthly fees to be the same.
