What do my monthly condo fees actually cover in Ontario?
Your monthly condo fees, called common expenses, pay for maintaining the common elements, cleaning, building maintenance, condo management and contributions to the reserve fund. Which utilities are included depends on the building, so check your declaration and budget.
The declaration sets each unit's share as a percentage, which may vary with unit size. For example, a 5% share of a $1,000 monthly budget is $50. The reserve fund portion is kept only for major repairs and replacements. The corporation must also insure the units and common elements against major perils such as fire and flood, so ask how the budget accounts for that cost.
Fees do not cover everything. The corporation's policy does not cover improvements or non-standard parts of a unit, and fixtures, furnishings, equipment and personal property are not part of a standard unit. A board can also levy a special assessment, split using the same percentage as your fees. Before buying, ask for the current budget and the latest reserve fund study, and have a lawyer review them.
Key takeaways
- Condo fees pay for common element maintenance, cleaning, building maintenance, condo management and reserve fund contributions.
- The declaration sets each unit's share as a percentage, which may vary with unit size.
- Your own improvements, furnishings and personal property are not covered by the corporation's insurance.
- A board can also levy a special assessment, split by the same percentage as your fees.