Well the answer is pretty broad, because it depends on which building/land, and what type of condo we’re talking about. More basic condos, usually have at the very least, insurance fees, management fees, and reserve fund contributions.
Insurance Fees: usually cover the land and buildings which are jointly owned by the owners. You should check the insurance certificate, but usually it covers catastrophic losses and other damages to jointly-owned property. In many cases, this insurance means that condo owners only have to buy a very reduced-fee condo insurance since most of your exterior insurance is covered. This, however, differs from condo to condo.
Management Fees: somebody has to answer the phone when there is a problem with the common property. Most owners don’t have the time to handle these calls themselves, especially in extremely large condos, so they hire a management company to do it. Not only do they answer phones for problems with the grounds, but they often usually keep up the books, manage the reserve fund, and enforce the condo by laws.
Reserve Fund: we all have to save for a rainy day, and your condo is no exception. A reserve fund is a savings account which is meant to cover items which depreciate over time, and is in place to cover any type of emergency or unexpected loss to the common property. A reserve fund study is requisitioned every 2 years to see that the fund is healthy and sufficient for the needs of the condo. This is an important thing to look at when you do your condominium document review in the purchase phase. A low reserve fund could mean a special assessment in the future.
In a more luxurious condo, you may have fees that cover a pool, flowers in hallways, gym or workout retreats, or even a guest suite. There are some condos which cover all or part of your utilities and still others cover your lawn care and snow removal.
It’s important to know what goes into your condo fees in Calgary. Make sure your agent and your condo reviewer gives you a list of inclusions so you know what comes with your purchase!
The Vanderveen Team
Maxwell South Star Realty
Phone: 403.253.5678 Fax: 403.592.6736