Condo fees are monthly payments that help cover the shared costs of owning and maintaining a condominium property. They usually cover building maintenance, common area upkeep, and, in some cases, utilities or amenities. The cost is a separate payment, in addition to each resident’s mortgage and property taxes.

As condos increasingly become the home of choice for many Canadian homebuyers, particularly first-timers but also increasingly move-up buyers, these questions are on the minds of many who are thinking about buying but may not fully understand how condo fees work.

Key Takeaways

• Condo fees are monthly payments that cover shared building costs like maintenance, amenities, and common services.
• Fees vary by unit and building, often based on size, amenities, and shared expenses.
• Utilities may be included, but coverage depends on the property and should be confirmed before buying.
• Condo fees do not include property tax, which is paid separately to the municipality.
• A portion of fees goes to a reserve fund, used for major repairs and long-term maintenance.

How Are Condo Fees Calculated?

Condo fees are usually calculated based on each unit’s share of the condominium corporation’s common expenses. In Ontario, owners pay common expense fees to maintain the condo’s common elements, fund the reserve fund, and cover shared services. The amount assigned to each unit is set out in the condominium’s governing documents and is often linked to the unit’s size, parking space, or locker. That means two units in the same building may pay different condo fees. A larger unit, or one with additional exclusive-use elements, may carry a larger share of the common expenses.

What Do Condo Fees Cover?

Condo fees usually help cover reserve funds and services such as cleaning, building maintenance, and condo management.

Utilities and Shared Services

In some buildings, condo fees cover utilities such as water, heat, gas, or hydro. However, this is not always the case, especially in newer buildings where some services may be separately metered and paid for by each owner. Condo fees may also help cover shared services such as snow removal, garbage collection, cleaning, and minor repairs in common areas.

Maintenance and Repairs

Condo fees also help cover property maintenance costs, such as lawn care, exterior cleaning, and common-area repairs. A portion of the fees may also support larger repair and replacement costs through the reserve fund. Repairs can include major work such as parking garage repairs, roof work, or other building-wide maintenance projects.

Amenities Operation and Upkeep

If the building has amenities, condo fees usually help cover their upkeep and operation for amenities such as a pool, gym, guest suite, rooftop terrace, hobby room, or other shared spaces.

Administration and Insurance

Condo fees also help cover management fees, administrative services, and other costs tied to running the corporation. In many buildings, condo fees also contribute to the building’s insurance coverage. Note that this is separate from the condo unit insurance that an individual owner may still need to carry.

Because every condominium corporation is different, it is important to review the status certificate or disclosure documents to see exactly what the fees cover and whether any costs are paid separately.

Do All Condo Properties Work the Same Way?

Most buyers are familiar with standard condominium ownership, where the unit owner has a private unit and a shared interest in the common elements. Some properties, however, use different ownership structures, and the fee arrangements may not work the same way. If that applies to the property you are considering, it is worth reviewing the ownership structure closely before buying.

The Difference Between Divided Co-Ownership and Undivided Co-Ownership

Divided co-ownerships mean you own an individual unit and may also have exclusive rights to spaces such as parking or storage, depending on the property. At the same time, you share ownership of the building’s common areas, such as hallways, elevators, amenities, and outdoor spaces. In undivided co-ownership, the property is collectively owned rather than split into clearly defined private and common portions. Owners hold a share of the entire property, and the rules governing financing, administration, and resale may differ from those of a standard condominium.

Because these ownership structures do not work the same way, it is important to confirm which one applies before buying. This is why some buyers explore no-condo-fee townhomes in Edmonton as an alternative to traditional condo ownership.

How Much Are Condo Fees in Canada?

Condo fees differ dramatically from one city to another in Canada. Fees typically range from $200 to $1,200+ per month, depending on a variety of factors, including:

• Location: Average condo fees in Toronto and other major urban centres tend to be higher than in smaller cities.
• Building Size and Age: Older buildings often have higher condo fees as systems and structures require more frequent repairs. Building type, size, and whether it is a high-rise can also affect costs.
• Utilities Included: Buildings where water, heat, and electricity are included typically have higher monthly condo fees but may offer more predictable total housing costs.
• Amenities Included: Amenities such as pools, fitness centres, concierge services, and guest suites can increase condo fees.

According to WelcomeAide, this is a breakdown of the average condo fees per square foot in major Canadian cities: