Quote:
Originally Posted by Rusty van Reddick
When I was condo board president (2001-2004) I learned that the average in Calgary is 30 cents per square foot. 50 sounds insane- We were paying around $400/mo for a 1220sf condo. 68 for Toronto?? Is that to pay for a security desk or concierge or a fitness center? I can't imagine that.
If your building doesn't have elevators thank God- that's $100k more for the reserve fund.
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I was my condo's Treasurer around this time as well. Condo fees seem to have gone up, in general, around 100% since then. It always shocks me when I look at condo fees these days. Mine were $350 on a 1300 square foot condo in an early 80s building.
As for Special Assessments vs. Condo fees:
You need the money either way, so it's just a question of how you get it. Special Assessments are bad for anyone who is planning on selling and moving out in the near term. But, fuck those guys since they're bailing out anyways. Special Assessments are also bad if they are relied on regularly as a funding mechanism. It screams bad management, and an inability to manage money. Transparency is key. Make sure everyone is clear on why there is a need for the money, how it's going to be spent, and that extra diligence was done to ensure that the money is stretched as far as it can go. So many boards run like this: "Oh we need to fix the roof, because it's leaking into my unit. I got a quote from a friend of mine. We need a special assessment." Rest of board "Oh ok. Maybe we should get another quote. But that's a lot of work. Also half the board is golfing. Maybe we should ask them. Nah. I trust you."
Condo Fees are one of the top considerations for new purchasers, since, like taxes, they very rarely go down. Raising condo fees in perpetuity will make all the units in the building that much harder to sell.
tl
r Do a Special Assessment unless you've already done a bunch of them, then set condo fees to meet your new Reserve Fund study goals, for whatever's left over. Take the time to get numerous quotes for large projects. 3 is the standard but sometimes is not enough (like with your roof, which seems to depend on how high the estimator is that day).
You can also do payment plan Special Assessments and/or a temporary increase in Condo Fees with a specific end date (though most people don't trust this) or a mix of Special Assessment and condo fee increase.