Stefan Nespoli P.Eng, LEEP AP Project Manager, Shareholder Edison Engineers Inc.
Lyndsey McNally RCM, Team Leader Malvern Condominium Property Management
condominium
owners
Timely ideas, insight, inspiration and information of particular interest to condominium owners
+
CV
condovoice
Cover Story
Why Are My Fees Going Up?
Listen in to authors Lyndsey McNally and Stefan Nespoli discuss the many factors that can affect condo fees and why understanding your fee is a crucial part of condominium ownership
Audio Podcasts Now Available!
Understanding Your Condo Fees is a Crucial Part of Condominium Ownership Of This I Can Be Certain In this ever-changing, uncertain world, it’s impossible to be sure of anything – except death and condo fees. And of course – condo fee increases. But why do my fees keep increasing, sometimes substantially in just one year? Understanding your condo fees is a crucial part of condominium ownership. It empowers owners with knowledge to make informed decisions, supports the building of a healthy and vibrant community, and sets a course for long-term stability for your Corporation.
The amount required for each fund varies significantly for different buildings based on social habits of residents, staffing levels, amenities, services provided by the corporation, construction style & materials, mechanical needs, building age, current fund balances, level of finishes, and the expectations of residents.
Factors Affecting the Operating Fund It is challenging for condominium communities to keep fee increases low. It is important to be sure that in cutting costs, the Board of Directors isn’t also reducing services for owners and residents or compromising on the quality of service being provided to the corporation. Many Boards will try to aim to keep fee increases in line with inflation annually. This is a good goal, but sometimes not a realistic one. In fact, many costs associated
with the operation of a property are rising at a rate much greater than that – let’s look at some examples. Legislative changes We hope that all readers are aware of the changes to the Condominium Act, 1998 which took effect November 1, 2017. There are several more changes to be implemented in the future contemplated in the Protecting Condominium Owners Act, 2015. Additionally, the Condominium Management Services Act, 2015 is increasing costs for property management companies. CONDOVOICE SPRING 2020
CV
59
ILLUSTRATION BY CARL WIENS
What are Contributions made of? The annual budget for a condominium corporation can be classified using two different funds – the operating fund for day-to-day expenses and the reserve fund for major repairs and replacements of the common elements.