You are ready to move into a condo but are baffled by the thought of paying maintenance fees on top of an already high list of expenses: mortgage payments, taxes, utility bills and moving costs? Many are deterred from purchasing a condo as a living option because of the additional fees owners have to shell out, with many considering maintenance fees a “waste of money” or “an additional rent payment.”
Let’s take a closer look at what maintenances fees encompass and help understand why owning a condo can actually be “good move” for buyers.
In essence, a condo maintenance fee is calculated based on the size of your unit and may differ year-to-year based on the condo’s annual operating budget. These fees cover all costs of maintaining the building, including landscaping, snow removal, window cleaning, housekeeping, garbage removal services, building insurance, etc.
If the building offers additional amenities such as on-site security, pool and spa facilities, gym and recreational areas, rooftop patio, and pet facility, these fees tend to be greater. In some cases, maintenance fees will cover some utilities such as water, hydro, heat and/or central air. Furthermore, condo maintenance fees will also cover parking spots and storage locker units.
Below are two of the most common misconceptions regarding condominium maintenance fee. Let’s tackle these so that you can make a better and informed decision when choosing your next home.
Condo Fees are Not a Source of Profit
One of the biggest misconceptions about maintenance fees is that a portion of the payment falls into management’s pocket. In reality, all condo buildings are registered as not-for-profit corporations. Additional fees collected are placed into the condo Reserve Fund, which is set up in case any unforeseen expenses arise.
Maintaining a Home is Not Always Cheaper Than a Condo
Many buyers have the false impression that owning a home is a more suitable option to avoid the additional expenses associated with condo fees. Anyone that owns a house understands that you must cover all utilities, house insurance costs, garbage removal costs, a home security system, as well as the overall maintenance of the house.
If one does their own yard work and snow removal, a home owner may invest hours to complete these chores. Hiring landscapers and snow removal companies can run up tab by hundreds, if not thousands annually.
Furthermore, there may be other unforeseen costs that may arise such as electrical and plumbing issues, flooding, roof repairs, parking permits, etc.
Overall, it is truly a lifestyle choice, rather than a financial choice that is the deciding factor when choosing a home.
If you would like more information, or if you are considering buying or selling a home, feel free to reach out to Mani Batoo at (647)282-4866.