It's no secret that Toronto and the GTA have some of the highest maintenance fees for condos in the country. In 2019 CondoAdvisor conducted a survey, they found condos in Toronto and the GTA had the highest fees averaging at $0.66 per square foot. This makes it important for buyers to be aware of these fees before they purchase a condo, as they can amount to a significant portion of your monthly budget.
What are maintenance fees and what do they cover in Toronto condos?
Condo fees, also known as maintenance fees, are a monthly charge that all condo owners must pay. The fee goes towards the upkeep of shared amenities and common spaces, as well as general property maintenance.
A percentage of your monthly fees will contribute to the condo reserve fund. Condos in Toronto is legally required to have a reserve fund, as specified by the Condominium Act, which acts as a emergency savings account for emergency repairs.
It's important to understand what your condo maintenance fees cover. In some cases, they do not cover utilities such as hydro and water, this will vary from property to property. And in cases where the utilities are included in the monthly maintenance fees, it doesn't mean you shouldn't be mindful of turning off the lights when not in use. While your monthly maintenance fees may not increase, the condos as a whole will. If the entire condo's usage gets higher than expected than you may see a raise in your condos fees to help compensate.
How much do maintenance fees typically cost for a condo unit in Toronto or the GTA, and how is this amount determined?
Condo maintenance fees in Toronto and the GTA can vary widely, depending on the size of the unit and the building amenities.
According to condos.ca, the average cost of maintenance fees in the Greater Toronto Area in 2020 was 64¢ per square foot. So if you purchased a 700 sq ft condo unit, you can expect to pay around $448 per month in your condo maintenance fees.
With that in mind, it's important to pick your condo floor plan wisely as having a large unused space like a large hallway as "wasted space" and you'll be paying extra in maintenance fees for it.
If you purchase a parking spot or locker, your monthly maintenance fees will increase by a flat rate. Parking spots can cost anywhere from an extra $50 to $100 per month, and lockers can be an additional $15 to $25 per month.
Always keep in mind that older buildings will have higher maintenance fees. The age and condition of the building starts to take its toll, and these costs are divvied up amongst all of the owners. Boutique condos typically follow this same rule since there are fewer owners to contribute to the overall cost of upkeep.
Why are condo maintenance fees so high in Toronto?
Condo maintenance fees in Toronto are high for a number of reasons.
Facilities and Amenities
Condos often have a lot of amenities and features that require regular maintenance. This includes things like pools, gyms, and common areas. These facilities all come with an associated cost, which is passed on to Condo owners in the form of maintenance fees.
The Size of the Building
One of the most important factors that determines monthly maintenance fees is the size of the building. This makes sense when you think about it; after all, a larger building will require more resources and materials to keep it running smoothly.
The Age of the Building
Another factor that can affect monthly maintenance fees is the age of the building. Generally speaking, newer buildings will require less upkeep than older buildings. This is because older buildings may need repairs to keep them up to code, which can be costly.
The Location of the Building
Location is also a major factor in determining condo maintenance fees. Buildings located in more affluent areas of the city will typically have higher monthly maintenance fees since
The Bottom Line
In conclusion, understanding what your monthly condo maintenance fees cover is important.
As we have seen, these fees can vary widely depending on a number of factors. It's important to be mindful of what you're paying for and to pick your condo floor plan wisely.
If you're purchasing a parking spot or locker, be aware that your monthly maintenance fees will go up by a flat rate. Always keep in mind that older buildings will have higher maintenance fees.
The bottom line is that condo maintenance fees are high in Toronto for a number of reasons, so it's important to do your research before making the commitment to purchase!