- Your fee is the building's annual budget multiplied by your unit's percentage share set in the declaration, and that share may vary with unit size.
- This article gives no typical dollar range per square foot, because a single figure cannot tell you whether a building is healthy.
- The status certificate package holds the documents a buyer reads to judge a building's financial health.
- A lower fee is not automatically better, since fees include reserve fund contributions.
When you compare condo units, it is tempting to divide the monthly fee by the square footage and rank the buildings. The number looks neat, but what does it actually tell you?
Here we explain how fees are set, why a per-square-foot figure is only a starting point, and which documents show whether a fee is realistic for the building you are considering.
How fees are actually set
Condo fees, also called common expenses or maintenance fees, cover maintaining the common elements, reserve fund contributions, and services such as cleaning and building maintenance. They are shared among all owners.
The declaration sets each unit's proportion of the common expenses. It is a percentage that may vary with unit size, and your share is generally the annual budget multiplied by that percentage. For example, a $1,000 monthly budget and a 5% share means $50 a month.
Notice what that means for a per-square-foot comparison. Size can influence the percentage, but the percentage is written in the declaration, not calculated from a market formula. Two units with the same size in different buildings can have very different fees because the budgets differ.
Why there is no single normal range
We have not given a typical dollar range per square foot here. Fees differ by building, by what the budget covers, and by year, and a figure quoted today can be out of date quickly. Treat any rule of thumb you read online with caution until you have checked it against the building's own documents.
A per-square-foot figure can still be a useful screening tool, as long as you compare like with like. The questions below help you decide whether a comparison is fair.
- Does the fee cover the same services in both buildings? Fees include maintenance, cleaning and other services, but what is included varies.
- Is the unit's percentage share the same basis as the other units you are comparing?
- Does the building have amenities that add to the budget?
- How old is the building, and how much does the reserve fund have to cover?
- Is the fee low because the budget is realistic, or because reserve contributions are thin?
What a fee can signal about the building
A very low fee is not necessarily a bargain. Because fees fund reserve contributions, a fee that is too low can mean the building is not setting aside enough for future repairs. Where there are large shortfalls, the corporation can charge a one-time special assessment on each unit, and the board can do this without owner permission.
A high fee is not necessarily a warning either. It may reflect more services, a stronger reserve contribution or an older building with higher upkeep. The fee on its own cannot tell you which.
| What you see | What it could mean | What to check |
|---|---|---|
| Low fee per square foot | Efficient budget, fewer services, or thin reserve contributions | Reserve fund study and status |
| High fee per square foot | More services, higher upkeep, or stronger reserve funding | Budget and financial statements |
| Recent fee increase | Rising costs or a catch-up in funding | Reason for the increase in the certificate |
| Special assessments | Past shortfalls | Assessments since the current budget |
The documents that answer the question
For a resale unit, the status certificate shows the unit's common expenses and whether it is in arrears, any increase with the reason, and any special assessments since the current budget, with reasons. A status certificate package also includes the declaration, by-laws and rules, the current year's budget, the latest audited financial statements, the latest reserve fund study and reserve fund status, insurance certificates, and any outstanding judgments or litigation. These are the documents a buyer reads to judge a building's health.
A corporation may charge no more than $100, including all applicable taxes, for a status certificate and must provide it within 10 days of the request. The Condominium Authority of Ontario advises buyers of a resale condo to have a lawyer review the certificate and to check its Condo Registry.
If you are buying a new unit from the builder, the disclosure statement includes a copy of the budget statement for the first year after registration of the condo corporation. Because that is a first-year budget, ask a lawyer how it may change later.
What to do next
- Divide the fee by square footage only as a first filter, not as a conclusion.
- Request the status certificate package and read the budget, financial statements and reserve fund study.
- Look at the reasons given for any increase or special assessment.
- Compare what the fee covers, not only the amount.
- Have a lawyer review the certificate and check the Condo Registry before you buy.
- Ask about the unit's percentage share in the declaration.
Frequently asked questions
Is a lower fee per square foot always better?
No. Fees fund maintenance, services and reserve fund contributions. A low fee might reflect a lean budget, but it could also mean limited reserve funding, so check the reserve fund study and financial statements.
Is my fee really based on square footage?
Not directly. The declaration sets each unit's proportion of the common expenses as a percentage that may vary with unit size, and your fee is generally the annual budget multiplied by that percentage.
What does a status certificate cost and how long does it take?
A corporation may charge no more than $100, including all applicable taxes, and must provide it within 10 days of the request.
Can fees change after I buy?
Yes. The corporation creates a budget every fiscal year, and a large shortfall can lead to a special assessment. Reading the budget and the reasons for past increases before you buy helps you plan.
Sources
- Condominium Authority of Ontario – Status Certificates — condoauthorityontario.ca
- Condominium Authority of Ontario – Pre-construction Condos — condoauthorityontario.ca
- Condominium Authority of Ontario – Common Expenses — condoauthorityontario.ca
- Condominium Authority of Ontario – Special Assessments — condoauthorityontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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