Strata fees in Ontario

[hagbard]

Why are they so high? I was skimming condos in Windsor, looking at $89k condos have strata fees of over $300 a month. Why so high? Do they include property taxes?

[hoob]

Why are they so high? I was skimming condos in Windsor, looking at $89k condos have strata fees of over $300 a month. Why so high? Do they include property taxes?

Here is this year's Aug 07 - Jul 08 operating budget for our 132-unit condo in Toronto. The corporation is three years old. Hopefully it gives you an idea of the costs that go into running a condominium. Utilities do not include in-unit electricity or gas:

Gas 85000
Electricity 94100
Water and Sewer 48600
Telephone 3400
TOTAL UTILITIES 231100

Security Staff Wages (60hr/week) 44452
TOTAL STAFF SALARIES 44452

Cleaning Services and Supplies 45370
Includes windows, garage, compactor, common area
Plumbing/Drainage 3000
HVAC Maintenance 8260
Electrical 4600
Fire Alarms and Life Safety 6700
Elevator Maintenance 12725
General Building and Repairs 5000
Garage Door Maintenance 1300
Locks Doors and Windows 2000
Pest Control 520
TOTAL BUILDING MAINTENANCE 89475

Landscaping and Snow Removal 18610
Pool/Gym/Spa maintenance 5735
TOTAL RECREATION 24345

Insurance 11920
Consulting Fees 0
Management Fees 44105
Audit and Legal Fees 4100
Administration Expenses 4000
TOTAL CORPORATE ADMINISTRATION 64125

RESERVE FUND CONTRIBUTION 150300
TOTAL CORPORATION ASSESSMENT 589297

MONTHLY ASSESSMENT 49108

[hagbard]

In Victoria, you'd expect condo fees of $300-$400 on a $500,000-$600,000 condo. These condos I was looking at in Ontario were under a hundred grand.

[hoob]

In Victoria, you'd expect condo fees of $300-$400 on a $500,000-$600,000 condo. These condos I was looking at in Ontario were under a hundred grand.

Except for certain high-cost services that are only present in very upper crust buildings, there is very little relationship between how much units in a building cost, and what the common assessment fees in that building are.

Bigger corporation with more units often have more expensive features like swimming pools, but in turn those and all other costs are split between 2-3 times as many units. In our corporation, the monthly assessment is charged based on the proportion of the total square footage in the building that comprises your unit (so larger units, which tend to be more expensive, will pay more.)

My 870sf unit has a $360/mo assessment.

Certain fees in the budget numbers I listed are elective (on-site security 60hr/week, for example -- but this building voted overwhelmingly to keep that service) but everything else is a relatively immutable cost.

[hagbard]

That makes sense, but it still seems crazy to pay $300+ a month in condo fees on a $90k property.