If you’re looking to buy a condominium, you have probably run into the term “maintenance fee”. The maintenance fee is an additional expense you will need to pay on a monthly basis on top of your mortgage and living expenses. This fee can range from a few hundred dollars to over a thousand dollars a month. But what exactly is a maintenance fee and why can it change drastically from unit to unit and building to building?
First off, maintenance fees are calculated by the condo corporation to ensure they are bringing in enough money to pay for the building’s expenses and to make sure there is enough money in the reserve fund. For expenses tackled by the condo corporation, these are paid thanks to the maintenance fees. Landscaping, the upkeep of amenities, repairs, and service personnel are all paid from the contributions of the maintenance fees.
Maintenance fees are not a set price for every building or even for every unit. They are calculated based on the total square footage you own within a building. This includes the unit itself, lockers and parking. A unit that is identical to another but has an additional parking space will pay more in maintenance fees due to the increase in square footage.
Not all buildings have the same amenities either which impacts the cost of maintenance fees. If you live in a building which offers a party room, pool, gym, concierge services, tennis courts and a library, you will be paying more in maintenance fees compared to a building which only offers a pool. This is due to the increased cost and maintenance of the additional amenities. If you live in a building with fewer units, the responsibility of maintenance fees is divided less which increases your portion.
Maintenance fees do have their advantages though. Depending on your building, some utilities might be included in the maintenance fees as well. For example, a building might have internet, cable, water and building insurance included in the maintenance fee as well as the use of building amenities. Based on how you budget your funds while looking to rent or to buy, you might be able to increase your budget if expenses you budgeted aside for are included in the maintenance fee.
In the end, it is always important to do your research on the building you’re interested in to see what the average cost of the maintenance fee is and what is included for the price. By contacting an experienced real estate agent such as Marco Pedri with Shoreline Realty Corp., Brokerage, they can give you access to historical data on building maintenance fees, the amenities the building has to offer and much more.
Marco Pedri is a Broker at Shoreline Realty Corp., Brokerage. He brings his expertise in public relations and communications to reach key demographics and audiences. With his sales knowledge in real estate, Marco Pedri is a powerhouse agent bringing exceptional service to buyers, sellers and renters.
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