If you're thinking about moving into one of the manyToronto condos located throughout the city, you likely know that condo living requires owners to pay monthly maintenance fees. So, how much do Toronto condo maintenance fees cost? And where exactly is your money going as a condo owner?
Navigating the world of condo maintenance fees can be challenging. But the insurance experts at BrokerLink have got you covered. To learn more about the average condo maintenance fees for the Toronto area, stick around!
What do monthly maintenance fees cover?
While there are numerous different expenses your monthly maintenance fee will cover when you live in a Toronto condo, one of the main expenses is allocated toward the maintenance costs of the building.
One of the main portions of condo maintenance fees is to cover the cost of utilities throughout common spaces in your condo building. Some of these utilities include the following:
Day-to-day cleaning costs
Your maintenance fees cover the associated costs of cleaning and maintaining all shared spaces throughout your building. For example, the gym, lobby, elevators, hallways, lawn care, and any other amenities. It also includes things like snow removal in the wintertime.
Typically, your condo corporation will hire a cleaning service to attend to your Toronto condo building at least once a day.
Routine and unexpected repairs
Condo maintenance fees are also put towards any repairs and upkeep that the building needs to maintain utilities. For example, maintaining the building's air conditioning and heating systems, technical maintenance of elevators, and repairs to the plumbing and electrical systems.
Building insurance
Condo ownership can be risky. But luckily, your monthly costs will also pay for building insurance. Just keep in mind that the condo fees will only go towards protecting the common areas of the building, but not your individual condo unit. For example, it provides compensation in the event shared spaces are damaged by fires and other insured risks.
Property management fees
Condo fees also help pay for property management companies and their staff to operate and maintain the condo on a daily basis. For example, if you have a 24/7 concierge on shift to handle any requests or problems.
Condo security expenses
Condo owners are also likely to pay monthly maintenance fees for security. This includes things like security cameras, systems, and any personnel that are posted on-site.
What is the average condo fee per square foot in Ontario?
Generally speaking, the average maintenance fee per square foot can range from $0.50 to $1.00, depending on where you live. You can anticipate higher fees when purchasing a unit in new buildings, whereas older buildings tend to have lower fees.
That being said, what most newer and older buildings in Toronto do is calculate the annual maintenance fees for the condominium. Once this total expense is calculated, all unit owners are given a percentage of the maintenance fees for the year based on the square footage of their private dwelling.
How much is a condo maintenance fee?
Condo maintenance fees in Toronto can vary. However, you can expect to be paying anywhere between $300 and $1000 a month on top of your mortgage payments on average. Remember, if you have more amenities, live in a larger, newer condo, and have, for example, a two-bedroom unit instead of a one-bedroom, you can anticipate paying more each month than other residents.
Are condo maintenance fees negotiable?
No, condo maintenance fees are not negotiable. These monthly fees are determined by the governing condo board in charge of running your building and are essentially based on the annual budget that is required to maintain and manage the property during the year.
As we mentioned, the budget covers common elements such as maintenance fees for common areas, building repairs, landscaping, security, utilities, and insurance. Because the condo expenses are crucial to maintaining the building, negotiating a different price would not be fair to other residents.
Ultimately, when purchasing a condo in Toronto, your condo maintenance fees will be outlined within your purchase documents. Further, it's important to note that your condo maintenance fees do not cover your mortgage payments or property taxes. You, as the owner, are required to pay these added costs on your own.
How can I find out what my condo maintenance fees are paying for?
If you are purchasing a condo in Toronto and want to know what you will be paying in terms of maintenance fees, make sure to take a look at the status certificate.
A condo status certificate is an important document that outlines information about the financial and legal status of a specific condo unit that is listed on the market, as well as the overall condo corporation that governs the property. This document is regulated under the Condominium Act in Ontario.
There are a couple of key components to this document that you should be aware of:
Required maintenance fees
The certificate will first outline important details related to the monthly costs the current owner of the unit is required to pay.
Reserve fund
Information about the reserve fund is also included. The reserve fund is used in scenarios where significant repairs or replacements are needed for the building. The document will include the total amount currently in the building's reserve fund.
Annual maintenance fee budget
The latest annual budget of the condominium corporation is important as it can give you a better idea about what the yearly costs are and how they pertain to the unique square footage of your unit.
Toronto building rules
Any current condo rules and by-laws enforced by the condo corporation will also be listed in this certificate.
Ongoing legal concerns
Sometimes, the certificate document will include information about any ongoing legal suits that involve the condo corporation.
Insurance
Details of the specific insurance coverage purchased by the governing condo board will be included so you have a better idea of what policies you have and what they cover.
Board of directors
Information about who the board members and property management company are, including their employees.
Recent board meetings
General board meeting information will also be included, especially if there are any ongoing issues or improvement projects that will be taking place in your building.
Information about the current owner
You will also see whether the current owner of the apartment unit is up-to-date on their payments, and whether they have had any issues with their ownership.
Unit renovations
Any modifications or changes to the apartment unit that have been approved by the condo board is also included for your personal knowledge.
Ultimately, when buying a condo in Toronto, it's important that you work with a real estate lawyer who can explain the details of each clause.
Are condo fees mandatory in Toronto?
Given that you are sharing the area with other tenants, condo fees must be paid in Ontario and other provinces. The management of your building, including day-to-day operations, would not be feasible without condo fees.
As a result, if you're thinking about buying a condo in the future, you'll need to decide if you want to cover the costs of upkeep and shared amenities on top of your mortgage payments.
Is there a cap on condo fees in Ontario?
No, there is no cap on condo maintenance fees in Toronto or Ontario. The amount you will be paying each year is essentially calculated by your condominium board. This board is in charge and responsible for calculating an annual budget that encompasses all of the expected costs that will be needed to preserve the integrity of the property for the year.
In other words, the budget has to contain enough money to pay for maintenance fees and any unexpected repairs that may be needed. Because of things like inflation, fluctuating utility rates, and other variables, putting a cap on home condo fees is not realistic and can lead to inefficient funds for the corporation.
Contact BrokerLink today!
Being a condo owner comes with a special set of risks, which is why having a home insurance policy tailored to your unique needs and condo is essential to protecting your private condo unit and financial interests.
The insurance brokers at BrokerLink have years of experience helping condo owners find affordable premiums without sacrificing comprehensive coverage.
To work with BrokerLink, contact a member of our team directly over the phone. Alternatively, you can get free insurance quotes from the comfort of your own home using our online quote tool.
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