Welcome to Condo’s Corner

by Daulton Read, OLCM

Issue #002

Get ready for a weekly dive into condo living like never before with Condos Corner. Speaking from my perspective as a Condo Manager, my goal is to entertain and provide valuable management insights and stories that can help you live your condo life a bit better—all with a little bit of wit, charm, and practicality.

What’s Happening This Week?

Storytime – 2 guys, a Uhaul, and a Kijiji ad

What are condo fees, and how are they created?

Condo Chronicles: 2 guys, a Uhaul, and a Kijiji ad

Alright, so this story takes place at a large 130-unit high-rise in the heart of the Niagara region. Now, we’ve got this unit owned by a guy who’s offsite, living in the GTA and renting his place out to whoever’s willing to pay the price. Cue the drama.

So, one day his current tenants pack their bags and head out, and while helping them our Superintendent lets me know that they’re leaving behind a scene straight out of a horror movie. I’m talking stained carpets, busted furniture, you name it – it was a mess. Now, technically, it’s not my job to clean up after these folks, but I figure, hey, might as well shoot the owner a heads-up, right?

Fast forward a week, and I get a call from my Superintendent, and he goes, “Boss, you won’t believe what just happened while they were clearing out that unit.”

Turns out, this owner, being the budget-savvy man he is, decides to hire two jokers off Kijiji to haul away the junk. Sounds innocent enough, right? Wrong.

These two roll up in a massive U-Haul and drive right up to the lobby entrance. But here’s the kicker: our lobby entrance has this permanent overhang, and the clearance of the exit is quite a bit smaller than the entrance. And what do they do? They barrel right in, ignoring the big, bold sign that says, “No trucks over x feet.“

Our Superintendent goes out to let them know, but these guys decide to play demolition derby instead. Instead of hitting reverse like any sane person would, they decide to floor it forward. And guess what happens next? They manage to wedge the U-Haul between the overhang and the pavement like a twisted game of Tetris gone wrong.

Now, you’d think at this point, they’d stop and assess the situation, right? Nope. They double down and hit the gas, pushing the U-Haul through the underside of the overhang. Ceiling tiles are destroyed, the siding goes flying, who knows how much damage was done to the roof of the Uhaul and the entrance looks like a war zone.

Long story short, we had to call in an engineer to make sure the permanent overhang was still stable and bring in contractors to repair the damage. And the cherry on top? The bill for all this chaos? Roughly a cool $10,000, slapped right onto the owner’s tab.

Moral of the story? When it comes to hiring help, don’t cheap out and make sure you vet your contractors. As an owner of the building, you are responsible for any damage that your tenants, contractors, or any other agents cause to the building.

Manager’s Memo: Condo Fees: What They Are and What They Cover

Let’s talk about one thing that tends to confuse folks: condo fees, also referred to as common element fees or maintenance fees.

Now, why are condo fees even a thing? Well, they’re the funds that keep the condo running. Think of them as your ticket to all the perks and amenities that come with condo living.

But what exactly are they, and how do they work?

In a condo, every unit owner chips in a regular monthly, non-negotiable fee. The size of your unit determines your slice of the condo fee pie—bigger unit, bigger fee. And guess what? This fee gets a yearly tune-up based on the condo’s budget, which is approved by the Board of Directors.

But who sets these proportions? Great question. It’s the builder who lays down the law through something called the declaration that is created when the condo is first approved. So, if you’re wondering why your neighbour with the penthouse pays more, it’s all in the declaration.

So, what exactly are you getting for your condo fee? While it varies by condominium, let’s try and break it down:

1. Utilities: Your fee might cover utilities like water, gas and electricity, but it’s not a given. Some condos now have individual heat pumps controlled by owners, so it’s best to check your declaration for what utilities are included

2. Common Areas: Ever wondered who’s responsible for keeping those common spaces clean? Your condo fee foots the bill for stuff like landscaping and snow removal, cleaning, and repairs and maintenance.

3. Reserve Fund: A large portion of your condo fee is set aside in a reserve fund, which every condo board must maintain as a savings account for big-ticket items that inevitably arise. A roof replacement can cost upwards of half a million dollars, so this fund is essential.

4. Administration: Building insurance, CAO fees, meetings, and management services—your fee’s got it covered.

When buying a condo, remember to factor in the condo fee in your budget. Leave a buffer in case the fee increases (which is common as condos age). The condo board decides the fee, so be prepared, but recognize that condo fees are essential to maintaining the property.

Do you have a condo tale to tell or burning questions about condo living? Don’t be shy—share them with me! Whether it’s a funny story, a management mystery, a celebratory story, or just a nightmare, we’re all ears. Respond to this email so we can keep the content coming.

Make sure to share this newsletter with your friends, family, and, more importantly – that neighbour who could learn a few things!