You’re about to become a co-owner for the very first time, and the condo association fees are adding to your expenses. New condo owners aren’t always aware of this when buying their property, but becoming a co-owner involves paying contributions to the contingency fund study as well as condo fees. Budgeting wisely is key.
What condo expenses do these fees cover, exactly? In addition, when the apartment is rented, is it the tenant or the landlord’s responsibility to pay them? How are the condo association fees calculated?
Find the answers to these questions below.
Definition of Condo Association Fees
The condo fees include all the current running expenses of the condo related to the management of the condo building. These expenses are presented at the general meeting of co-owners and are necessary to ensure the proper functioning of the condominium.
What do condo fees cover and include?
The condo association fees cover the common property expenses of the condominium — in other words, the expenses related to:
- Condo Syndicate Management;
- Property Maintenance Management;
- Property Management, particularly the bookkeeping;
- Administrator Compensation;
- Renovations, Repairs, and Work;
- Minimum of 5% for the contingency fund to cover unforeseen expenses (major repairs);
These monthly condo fees are paid to the condo syndicate.
Do condo fees include property taxes?
The property taxes are fees coming from the municipality in which you reside. Therefore, condo fees do not include property taxes.
Common expenses for restricted-use areas, such as the maintenance of a garden, terrace, or parking space for the exclusive use of one co-owner, are therefore excluded. The maintenance expenses for the common areas are part of the condo fees. Learn more on should you buy a parking space with your condo.
It should also be noted that condo transfer fees, which are different from condo fees, apply when selling a property. These are collected by the municipality and must be paid by the buyer within 30 days of issuance of the invoice.
The Distribution of the Condo Fees Between Tenant and Owner
Who pays the condo fees in the event of a rental?
With respect to the condo fees, the tenant is not directly concerned. In effect, it is the landlord, in their capacity as a co-owner, who is responsible for the common expenses.
It is therefore the landlord’s responsibility to include the condo fees such as heating, if it is collective, in the rent.
Certain building by-laws demand a deposit from the co-owner or fees to be paid to the syndicate in the event of a move. The landlord must collect these fees or the unreturned deposit from the tenant in the event that the common areas have been damaged.
Calculating the Condo Association Fees
As prescribed by Section 1064 of the Civil Code of Québec, each co-owner participates in the common expenses in proportion to the relative value of his fraction.
The Condo Fees Depend on the Value of the Condo
The condo fees are calculated not based on the square footage of the apartments, but on the value of each unit as specified in the declaration of co-ownership. For example, not all units in a condo building have the same value. If a unit oversees a view by the water and another unit oversees parking lots, both units won’t have the same value.
To find out how to calculate the condo fees, it is therefore important to refer to this document.
Distribution Keys for Each Type of Expense
To distribute the condo fees fairly, the declaration of co-ownership includes fee distribution key tables.
Rely On a Condominium Management Firm that Cares
Condo management can seem complex to co-owners. Don’t wait for the situation to become a nightmare. Your time is valuable. Contact and entrust these duties and obligations to Condo Stratégis, a condominium management firm with expertise in all areas of property management services, for harmonious condo living.