Condo maintenance fees: How to know whether they're too high — or not high enough

Kamil Karamali has more on the struggle some pre-construction condo buyers in Toronto are facing amid Canada's condo market downturn.

Condos are a popular choice for many first-time homebuyers owing to their lower price point and access to amenities such as gyms and pools.

But as well as a mortgage, condo owners are responsible for monthly maintenance fees that support operating costs for the building, among other aspects, and it’s important to factor that into your purchase and monthly budget.

Condo fees generally cover a lot of what homeowners would spend out of pocket, such as property insurance and general maintenance, said Karolina Armstrong, a real estate broker at Right At Home Realty in Toronto.

“It’s what keeps the building running for all the owners,” she said.

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Other common items usually included in condo fees are garbage removal, elevator repairs, and security and cleaning staff. The fees also go toward the building’s reserve fund, which is money set aside for future repairs and larger maintenance projects, such as replacing windows and roofs.

How much a condo owner pays depends on the age of the building, how well it’s been maintained, whether utilities are included, and how many units there are in the building or complex.

Armstrong said older buildings can cost more to maintain, while certain perks, such as a swimming pool, can also be reflected in the fees.

“It’s a hands-off lifestyle, essentially, but you have to pay for it,” she said.

As a rule of thumb, condo fees should be between 75 cents and 85 cents per square foot of the unit, said Brendon Cowans, vice-president of business development at Property.ca Inc.

That means about $595 in monthly maintenance fees for a 700-square-foot condo is within reason, for instance.

If it is north of a dollar per square foot, he said it indicates the fees may be expensive, depending on the amenities you’re getting.

On the other hand, low condo fees could indicate the reserve fund isn’t well-funded, Armstrong said.

“If you’re paying 50 cents a square foot in a 20-year-old building, that’s too low in my opinion,” she said, which could hint at an underfunded reserve fund.

Alim Dhanji, a certified financial planner at Assante Financial Management, said he usually tells his clients to look at their budget and monthly cash flow before buying a condo.

If your budget is stretched thin, it’s likely time to look for something more affordable because condo fees typically go up, he said.

“If you are able to absorb those condo fees and still be able to make your own (savings) goals as well, then that’s a green flag,” he said.

Provinces, including Ontario and British Columbia, don’t have a legal cap on annual condo fee increases, and the condo board decides what the common pool of funds needs.

Each province and territory maintains and governs its own condo laws, which provide a structure for condominiums to form boards, set bylaws and manage the property.

But not all maintenance or condo fees are built equally and the monthly payment alone doesn’t necessarily give a full picture of a property’s financial health.

Cowans said it depends on how well the reserve is funded and whether the property has been maintained over time. If management fails to care for the property over the years, for instance, homeowners could see larger, unexpected repair bills down the road.

And if the reserve fund is lacking, the condo board could push for special assessments, which are a one-time charge to all condo owners for major repairs.

Special assessments are typically a warning sign, Armstrong said.

Often, she said special assessments can weigh on property values in the near term, and owners could have a hard time selling the property during that time.

“You’re going to have a buyer-beware situation,” she said.

Cowans recommends all his clients review the condo’s status certificate — a financial and legal report on the building — with their lawyers to understand the history of the property before buying.

“It talks about the health of the building, including the reserve fund studies,” he said.

Armstrong said condo fees should be considered a fixed cost, so people should thoroughly review building documents before purchase and know their financial picture.

“There’s no getting around it or not paying it or negotiating it.”

This report by The Canadian Press was first published June 22, 2026.

Ritika Dubey, The Canadian Press