Condominium fees can range from 200 to 700 dollars per month and above for apartments worth 200-600 thousand dollars.
It's amount depends on many factors, from the age of the condominium building to the region where it's located to how effective the administration is.
You shoudl aways be preparared for increase of the amount of condo fee in the future.
Why you need to pay condominium fees
The main difference between a condominium and a private house is that if something breaks in a private house, then you should fix it yourself, at your own expenses.
In a condominium, problems are eliminated by staff. Since the owner of an apartment in a condominium is also a partial owner of all common areas, such as elevators, lobbies, corridors, halls for sports activities, swimming pools and surrounding areas, etc. (common elements), then he should pay maintenance costs.
The condominium administration, whose members are several elected apartment, handle collection of money and payments to companies serving the condominium.
Part of the collected money goes into a reserve fund, in case there is a need to carry out some unplanned works - for example, repairs in the event of an accident or sudden deterioration of the building.
Factors affecting the amount of condominium fees
Condominium fees depend on a number of different factors. For example, the more apartments in a condominium, the less maybe the amount, because the expenses are divided by the number of owners.
Types and frequency of services also affect the amount of condo fee. Servicing gyms, saunas, swimming pools, squash courts and tennis courts, banquet halls, billiard and other rooms is also paid from the money collected as condo fee.
Additional payments in condominiums
In addition to condo fee, condo owners also need to pay property taxes. Another kind of expenses is charges for gas, water and electricity - utilities.
In some condominiums, these expenses are included in the condo fee, in others it must be paid separately. Usually new multi-storey buildings have separate counters for each condo.
The amount of fees is determined by the Administration of the condominium. Therefore, before you buy an apartment in a condominium, you should carefully examine what you have pay.
Another important point is that there are no regulations and restrictions on the amount of the condominium fees.
In fact, this amount can vary greatly, and is determined based on the needs of the administration of the condominium to cover the costs of maintaining the complex, proportionally to the area you occupy.
Condominium fees in new and secondary market condominiums
At the time of completing construction, construction companies set the initial monthly condo fee. In order to make their condos more attractive, they try to minimize the amount of condo fee. Therefore condo fee in new buildings will increase.
Therefore, before you buy a condo in a condominium you should carefully study the calculations of the construction company regarding the condo fee.
If the calculations seem very underestimated to you - be prepared for a fee increase. Besides, the amount of payments depends on the overall state of the economy and inflation. When inflation is high, the cost of materials and services, as well as the amount of the condo fee will increase.
If you buy a condominium at the secondary market, try to assess the growth prospects of the monthly payment based on the state of the building, its wear and tear, age and so on. In When you buy an apartment in a condominium, you have to get a lawyer check the bfinancial condition of the condominium.
It's not always true that "the older condominium, the higher the Condominium fees are".
If the condominium administration spends money effectively and maintains the building in good condition, the reserve fund may be sufficient to reduce the size of the condo fee, rather than increase it.
On Condominium Fees I used materials written by Helen Riabinin, Sales Representative, Century 21 St.Andrew's Realty Inc. for Russian Toronto.