blog condos 9

Why do I pay a mortgage and condo fees?

First of all, condominium fees are neither optional nor negotiable.

In addition to making monthly mortgage payments, each condo owner is required to make mandatory monthly payments to the condominium corporation in the form of condo fees. Your condo fees are initially established by the building owners/developers and, over time is then transferred to a board of volunteer directors working with a professional property management company and are based on what’s called ‘percentage of interest’. It boils down to how much interest or ownership you have in the building. This is determined by the square footage of your unit and how it compares in size to other units in the building and a percentage owned of all common elements, including hallways, parking, gardens, security if applicable and the like. Your percentage of interest is then multiplied by the building’s annual operating budget and broken down into a monthly fee.

Unit owners are required to pay a share toward the care and upkeep of amenities such as swimming pools, regardless of whether or not they plan to actually use the pool. Unit owners cannot withhold payment of their condominium fees if they are displeased with the board of directors, the property manager or other unit owners.

So what might this monthly expense cover? Depending upon the bylaws of each specific corporation and whether a high-rise or townhome, they may include some or all of the following:

General building maintenance;

Condo employee salaries (cleaning staff, superintendent, recreational facility staff);

Minor repairs;

Cleaning – windows and common area carpets;

Garbage collection;

Landscaping and snow removal;

Security;

Pool and/or gym maintenance;

Elevator maintenance and repairs;

Pest control;

Parking facility (including garage maintenance and monitoring);

Heating, ventilation and air conditioning maintenance;

Management company and legal fees;

Insurance (for external and common aspects of the building only); and,

Reserve funds used to finance any major repairs and/or renovations.

Buying or selling your home? Consider Mary Bateman, a professional real estate agent with considerable expertise and knowledge of the residential home and condominium market in Barrie and Simcoe County. A trusted real estate solutions provider. Call Mary Bateman today at RE/MAX Chay Realty Inc. at 705-722-7100 or toll free 866-606-2429. Get to know Mary at www.marybateman.com or on Facebook. A convenient call or a click away.

Awards & Designations

Hall of Fame Award, Lifetime Achievment Award, Platinum Club Award. ABR and SRES

Contact

Please contact my directly at either of the numbers listed below. If I'm unavailable please leave a message and I WILL call you back. Thank you.

Email: [email protected]

Barrie: (705) 722-7100

Toll Free: (866) 606-2429

 

Follow Mary

We're on Social Networks. Follow us & get in touch.