I’m really curious as to why Toronto condo maintenance fees are so much higher than other Canadian cities. Take Vancouver for instance, you will find that most maintenance fees are only $290-$350/month for a 1 bedroom condo, even condos built 30 years ago. I’ve purchased a condo in Toronto and the fees are set to 60cents a square foot plus parking, locker, bike rack etc which ads up to about $438/month for less than 600 square feet on a new build. Looking at real estate listings in Vancouver, although some condos are much higher in price their maintenance fees don’t vary quite as widely as ours. Someone said it’s because of our laws mandating that we set aside a larger percentage for the reserve fund. But I have friends in Vancouver who own, who say they also pay into a reserve fund. So I am really wondering what it is that costs so much more to run condos in Toronto than Vancouver that our fees for older buildings sky rocket, and the average price psf seems to much higher.
I’ll be honest – I’m not familiar with how Vancouver condos are run.
But seeing as these two markets are in different provinces, and the Condominium Act falls under Provincial legislation, I would think that how the Act is written likely has a major influence on how condos are run.
It also depends on the cost of water, gas, electricity, and labour. Those are the big four expenditures that condominiums endure.
Most condos here in Toronto see the unit owner responsible for their own electricity, but the common areas are massive in most condos, and the gas and electricity used is substantial.
The labour isn’t just property management and concierge, but also maintenance, cleaning, repairs, lawyers, accountants, and anybody that works with the condominium corporation.
Remember that there’s an inverse relationship between maintenance fees and price, so if you pay $1.00/sqft for fees as opposed to $0.60/sqft, you might get a $200/sqft discount on the purchase price.
If anybody else has something to add here, or has experience investing/owning in Vancouver, please make your voice heard!