Condo maintenance fees, explained

What the fee pays for

Every owner pays a monthly share of the cost of running the building. That usually covers upkeep of the common areas, the building's insurance, management, staff such as a concierge, and a contribution to the reserve fund that pays for major repairs. In many buildings it also covers some utilities, most often water and heat.

How it is set

Each unit is assigned a percentage of the building's common expenses, based largely on its size. That is why fees are often quoted per square foot: it lets you compare a 550 sq ft unit in one building with an 800 sq ft unit in another.

Why fees go up

Costs rise, buildings age and insurance premiums change. A newer building often starts with a low fee that climbs in its first few years as real costs replace the builder's estimates. A fee that rises steadily is normal. A fee that has been held flat for years can be a warning that the reserve fund is being underfunded.

What to check before you buy

• Exactly which utilities are included, and which you pay on top
• Whether parking and the locker carry their own fees
• The history of fee increases over the last few years
• The reserve fund balance and the date of the last reserve fund study
• Any special assessment, planned or recently charged

Most of this is in the status certificate, which your lawyer reviews before your offer goes firm.

Think in monthly cost, not just price

A cheaper unit with a high fee can cost more each month than a pricier one with a low fee. Our monthly cost calculator adds the mortgage, the fee and property tax together so you can compare units fairly.