Brookfield Residential works to keep condo fees low

Not all condo fees are created equal. In fact, there can be wide disparities in condo fees from one project to another in terms of the literal cost and what the fees cover, says Justin Castelino, marketing manager at Brookfield Residential.

With most builders offering some form of multi-family housing option these days – and the economy, local market pricing and OFSI stress test conspiring against would-be first-time homebuyers – understanding condo fees has become more important than ever. Indeed, if you’re going to add a couple of hundred dollars to your monthly housing expenses, you definitely want to know exactly what’s covered in your condo fees, and what’s not, says Castelino.

It’s best to begin with a basic definition, starting with the word condominium. According to Marc Bateman, president of Acclaim Condominium Management Services and a two-time past-president of the local chapter of the Canadian Condominium Institute (CCI), when most people think condominium, they think of an apartment or townhouse-style home. However, condominium is a term that refers to the legal ownership of the property, not the type of building. Condo buyers own their unit as well as a proportionate share of the total common property in the project. This is known as a resident’s ‘unit factor’. This unit factor is then used to calculate condo fees, which are set at the time of construction by the builder/developer. Therefore, who the builder is can make a big difference, says Bateman.

In theory, everyone living in the same size unit as yours will pay the same condo fee. Keep in mind that if you pay property tax on it, it counts towards your unit factor. So, if you own two parking stalls and your neighbour in an identical unit only has one stall, you will pay more in fees.

Condo fees are those monies paid above and beyond one’s mortgage in order to provide certain services and/or amenities at a given condo community. Most people understand that their fees go towards basic maintenance like lawn mowing, landscaping and garbage and snow removal.

“Condo fees help to have a convenient lock it and leave it lifestyle,” says Castelino. “Fees also go towards insurance coverage on the exterior of the building so that you’re only responsible for what happens within your unit.”

Of course, if the building has amenities like a library, swimming pool, billiard room, fitness centre, community kitchen, etc., you can expect to pay for it in the form of condo fees.

A portion of the fees also goes into a Reserve Fund, a separate account maintained by the Condo Board to prepare for regular repairs required due to general wear and tear as well as to respond to emergencies.

Some condo fees cover things like water and heat, while some don’t, so it’s important to know what you’re getting into says Bateman. For example, if you’re a single, do you really want to pay the same for water as the family of four next door? Maybe you’d prefer to just pay for what you actually use. Or maybe your neighbour keeps their thermostat set at 20 and you keep yours at 15 – it’s almost like you’re helping to subsidize their heating bill.

Not so at Brookfield Residential, says Castelino. “The fact that our condo fees don’t include utilities in our townhomes helps to keep costs low as your monthly fees won’t go to cover a portion of your neighbour’s water or heating bills.”

Like condo bylaws, he says, condo fees play an important role in sustaining the value of your home by ensuring that the exterior of every single home in the community is professionally maintained.

“Of course we’d prefer you buy a Brookfield home,” says Castelino, “but no matter what condo you’re looking at, make sure you know exactly how much the fees are, what they cover, if they’ll ever go up and if there are any special assessments pending. Brookfield works closely with the condo management company to ensure we are accurately forecasting expenses. This helps bring peace of mind to our homeowners, knowing that there shouldn’t be any major increases after they move in.”