The Pros & Cons of Condo Fees – Things to Consider

When it comes to purchasing a multi-family style home, there are typically two choices, condo fees or no condo fees. But what are the advantages/disadvantages to each, and which should you choose.

What typically sets apart whether monthly condo fees are charged or not is determined by how the home will be maintained, and by whom.

When purchasing a multi-family home that does not include condo fees (fee simple), it is the homeowner responsibility to maintenance their property. This includes all maintenance on their piece of land their property sits on and everything within it – including lawn maintenance, snow removal, fence/deck upkeep, roof/siding repairs and sidewalk clearing surrounding your property.

When purchasing a home that includes condo fees, the main benefit is being able to enjoy a lock and leave lifestyle. All the maintenance of your property is done through your strata company, which you pay a monthly fee for. No more lawn maintenance, fence painting, snow shoveling or exterior repairs. All this is included in your monthly condo fee, leaving you the freedom to enjoy your downtime.

On the other hand, there are some benefits to having no condo fees. It may help you qualify for a larger mortgage amount, however when costly repairs happen, it becomes the homeowners’ responsibility to pay to fix those. Those repairs can really add up, so even though you may not be required to pay monthly condo fees, as a homeowner you should still be accounting into these unexpected expenses into your monthly budget.

With owning a home that includes monthly condo fees, all the maintenance work is done for you. The upside of this is that the condo fees also include things like hiring and managing companies to do the maintenance, dealing with any issues that may arise in ensuring your home is well maintained. Time is money, so having your freedom to not worry or spend weekends doing the upkeep is a huge benefit, a lock and leave lifestyle makes it easy.

One of the most overlooked benefits of paying condo fees is when there is a large expense that may affect your neighbours or even your entire community, these fees are then split between everyone who may be affected. If you are not paying condo fees, when large expenses arise, this can mean more difficulties navigating with your neighbours or your entire community as to who will govern these decisions and how the work will be completed.

AJ van der Linden, sales manager for Vesta Properties Alberta, says “one way to look at condo fees is as an investment in the protection of the property and maintaining its value”.

“Condo fees ensure that the property is well-maintained, the sidewalks are cleared of snow, the grass is mown, the windows, sidings and roof are all properly cared for. It is what preserves the overall value of your home while making an easy lock-and-leave lifestyle possible,” he says.

“With no-condo fee homes, you are free to do with whatever you want with the property, there is no one to tell you different, but you bear sole responsibility in the upkeep of the home and the property surrounding it.”

Condo fees bring structure to condo living. They make sure the property is protected and maintains its value, they are there for emergencies when repairs are needed for communal areas of the property, which brings peace of mind.

But for the property to function as well as it could, a reliable, well-run condo board is essential. “That is why I always advise owners to raise their hands and participate in the condo board, as they will be responsible, with assistance from the property management company, to enforce the bylaws of the condominium, review and agree on a budget and how the fees are used. It is a shared existence, and the condo board is the most efficient way to settle differences with neighbours.”

The decision to purchase a home with or without condo fees is as important as the home style you select. You need to carefully consider lifestyle, time commitments as well as your financial situation. For each person, the decision is different, but you can now weigh both the pros and cons.

Vesta offers a variety of home styles with and without condo fees, so the choice is yours. Talk to our sales team to find out more.