Condominium living has many wonderful benefits, especially the fact that residents do not have to maintain and repair the building and the fabulous amenities it contains.
You can use the time you would spend clearing snow, weeding the garden and raking leaves for things like swimming, watching a big game in the theatre, soaking away the cares of the day in the whirlpool, stretching out in the yoga room, playing virtual golf or any of the other activities made available in your building. Of course, over time all residences need upkeep, so it is only natural that in a condominium there are practices in place to ensure that the necessary arrangements can be made and paid for. Hence, the maintenance fee.
This monthly payment is an important factor in keeping your quality of life high in your condominium. This includes things like security. Most condominiums today offer 24/7 concierge service, and these professionals require salaries. Remember that if you opt to add a security system to a low-rise home, you pay a monthly fee for monitoring as well.
Maintenance fees also protect your real estate investment. In addition to providing for the ongoing cleaning and maintenance of all the public areas in the building, including the lobby and hallways, a portion of the fee goes toward something called the reserve fund. This is really an automatic savings plan that ensures the money is there to pay for essential services in the future. The fund is administered by the condo board, and in the case of unforeseen problems after the Tarion Warranty coverage is over, they can be accommodated through the fund.
If you are thinking of purchasing a condominium suite, it is important to place the maintenance fees into perspective. A substantial percentage covers utilities such as hydro, gas and water, which you would pay for separately from your mortgage in a low-rise home. There is a trend today toward providing hydro metering separately per suite, which is just fine with most purchasers. People’s hydro use varies greatly. Some residents are careful about shutting off lights, avoiding running appliances during peak hours and the like. Most buyers are happy to pay for what they use. They also appreciate the fact that if they are away for weeks or months, their hydro bills are very low. We are even beginning to see water metered separately. Of course, when this is the case, the maintenance fees reflect that.
From time to time, condominium sales representatives hear concerns from potential buyers who do not intend to use a specific amenity and feel they should not have to pay for its maintenance. Pools are most commonly mentioned. What these people do not realize is that the cost to maintain and service a pool and whirlpool is an extremely small portion of the annual condominium budget. Although you may not use a pool or another amenity, your guests may be happy to indulge, and the amenities will enhance the resale value of your suite in the future.
When you shop for your condo, keep all of this in mind. Amenities are an extension of your living space. Of course, you will gravitate to the buildings that include the amenities that are important to you. But if there are amenity spaces that do not appeal to you now, they may someday.
In a low-rise home if you do not want to mow the lawn, weed the garden, wash the outside windows, etc., and you do not have teenagers in the house, you have to hire someone to do it! Although it might seem you are paying more through maintenance fees, in fact, much of the cost goes for items you would have to find the money for anyway. And the rest is well worth it to afford you luxury, convenience and free time.
Barbara Lawlor is president of Baker Real Estate Incorporated and an in-demand columnist and speaker. A member of the Baker team since 1993, she oversees the marketing and sales of condominium developments in the GTA and overseas.
