You may be curious about condo fees and what they are used for, especially if you are considering purchasing a condominium for yourself. Here is what to expect.
The amount you pay in fees will vary from condo to condo, depending on the condo board and how the fees are structured. For condos with lower fees, say below $300 per month, those fees will likely only cover things like reserve find contributions and management fees – perhaps a few other small items. For fees ranging upwards of $400 and even as high as $500, they likely include most or all of your utilities, on top of reserve fund contributions, management fees and the like.
What’s the reserve fund?
The reserve fund is money that is allocated for projects that may affect the entire condominium structure or property. This could include repaving the parking lot, re-carpeting hallways or putting a new roof on the building. Having a large reserve fund is always a good thing, especially in cases of emergency. A burst pipe can destroy things quickly and be hard to foresee – or an update on the building’s exterior may prove to be beneficial to all in the long run – who can say?
Does everyone pay the same fees in the condo building?
This will depend on whether or not all the condos are the same size or not. Generally your condo fees are based on the size of your condo, so the more square feet you have, the more you pay. Condo fees can and do increase on a regular basis, but you may go a couple of years without seeing an increase at all.