When purchasing a condo, unit owners must pay monthly "condo fees" or common expenses fees. These fees are used to maintain the condominium building's common elements, and are paid in equal parts by every unit owner throughout the building. If you are considering purchasing a condo, here is some info on what condo fees are, how they are determined, and what they go to pay for.
What Are Condo Fees?
Condo fees is a term used to describe what condominium owners call common expense fees. These common expense fees are an extra expense on top of the full cost of the upkeep of your unit. The fees are used to pay for the maintenance and upkeep of common elements in the building.
What are common elements? Anything that is not the individual units. This includes hallways, the building lobby, a parking garage, elevators, as well as the upkeep of any recreation centers in the building such as a gym or a pool.
How Are Condo Fees Calculated?
The common expense fees are calculated by collecting several pieces of information. The fees is based on the amount for the operation of the condo building, the amount for a reserve fund, and the amount to pay for facilities shared with other condo corporations. The shared facilities are only paid for in portion, and are not applicable to every condo building. Consult with the condominium management to understand.
All of these fees are calculated and then the final total is divided up. The calculated fee is then billed to each owner on a monthly basis.
A reserve fund is a trust that is set up by the condo corporation or condo management team which allows them to take on any financial burdens associated with unit repair or replacing common elements. Any major work to the building or property is paid for collectively by the unit owners through this reserve fund.
If you are interested in becoming a first time condo buyer, connect with an experienced real estate agent who knows the Niagara condo market. Team Davids has the experience to help you. Connect with our team today.