Two similar condos: same price, same neighbourhood… yet one’s monthly fees are triple those of the other. How is this possible?
For many buyers, condominium fees can feel confusing and sometimes even oddly low. However, these fees are never arbitrary: they reflect the building’s characteristics and management choices.
The Key Difference: The Building’s Amenities
The condo fees each co-owner pays on a monthly basis cover the building’s overall service offer. The greater the number of services provided, the higher the bill.
Real world examples:
- Elevator (maintenance and mandatory inspections)
- Swimming pool, spa, gym (heating, maintenance, insurance)
- Concierge or security guard
- Full snow removal and landscaping
- Heating or hot water (if included)
- Indoor parking lot maintenance
- External management company fees (e.g., $80,000 per year for a 120-unit building)
Good to know: A small six-unit building with no elevator or communal areas will almost always charge lower fees than an 80-unit tower with multiple amenities.
New Legal Requirements
Following recent regulatory reforms introduced by the Québec government, syndicates of co-owners (made up of co-owner administrators elected by the other co-owners) must now
- ensure sufficient reserves in the contingency fund;
- keep an up-to-date maintenance logbook.
The goal is to preserve the building’s value on behalf of all co-owners as well as protect them from hefty special contributions for sudden and costly damages that exceeds the emergency fund’s reserves. This is also good news for new buyers: imagine buying a unit and then, a few weeks later, having to pay a special $1,000 contribution for unexpected repairs!
These new rules have, however, caused condo fees to rise in several buildings. In some cases, these fees will remain high for an indefinite period to replenish a deficient contingency fund; in others, these fees will never come down.
Remember, an effective syndicate of co-owners
- plans work over the long term;
- maintains a sufficient contingency fund;
- avoids expensive emergency repairs.
And an ineffective syndicate of co-owners
- delays maintenance work;
- imposes surprise contributions;
- keeps condo fees artificially low… until things take a turn for the worse.
The Building’s Size and the Number of Co-owners
These two factors can influence condo fees… but not always in the same way!
On the one hand, the many co-owners of a large building may pay higher fees to cover the costs of pricier equipment, more upkeep, and extra administrative work. On the other hand, while a small building may offer few services, each co-owner bears a greater share of the expenses. In short, it depends!
Don’t worry, though: in the case of a new building, where some units have yet to be sold, the developer is responsible for paying the empty units’ condominium fees.
Insurance and Past Claims
Condominium insurance premiums have skyrocketed in recent years across Québec, especially for buildings that have previously experienced
- water damage;
- recurring claims;
- plumbing or roofing problems.
A building with a history of claims will pay more… as will the co-owners.
The Building’s Age
Even when they both provide similar services, new buildings tend to come with lower fees compared to older constructions. Here’s why.
New constructions generally benefit from
- up-to-date materials;
- guaranties (GCR);
- new mechanical systems.
Conversely, older condo buildings usually involve
- more preventative maintenance;
- repeated repairs (roofing, masonry, balconies);
- occasional costly upgrades (e.g., to meet new fire and elevator safety standards).
As a co-owner, condo fees make up a significant portion of your budget. It’s important to remember, however, that homeowners must also pay for regular maintenance, yearly insurance premiums, etc. These fees are thus normal and necessary.
If you’re considering purchasing a particular condo unit and are unsure regarding its condo fees, don’t hesitate to discuss your concerns with your real estate broker. They’ll be happy to give
