Quote:
Originally Posted by WarrenC12
It's all about the operational costs, just like any business. Some of these amenities are pretty amusing.
The 501 has a few unique items:
1. Two guest suites. Sort of like hotel rooms, a bedroom and a bathroom. They rent to residents for guests at $50-$60 each per night. Very reasonable, I'm not sure they are turning a profit with cleaning, etc. But probably not losing money. Linens are not included.
2. A "caretaker suite" which is a 1 bedroom condo that was meant to be used by the building manager. The strata "owns" it (but is paying a mortgage). I don't remember the original details, the developer must have "sold" it to the strata with a mortgage at 80% of the value or some weird thing. It's a decent asset to have, but again, roughly breakeven until it gets paid off.
And then no visitor parking, which is a giant PITA.
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Absolutely. As an owner you pay for these amenities even if you never use them. It's quite ridiculous in some cases. I pay strata fees in my rental unit in Park Place and in 2.5 years now my renters have never once used the amenities. Yet I pay for them every month as a portion of my fees.
When I was living there I used them mind-you but the vast majority of people I find don't actually use them. Don't get me wrong I think each development needs something, but some of this luxury amenity stuff is just pure insane.
#1 though guest suite, I'd be surprised if they are actually renting it out. I've seen several stratas with them including our own, and in 1 year of having a guest suite we're rented it for exactly 4 days total. 4 days in 1 full year. And it is considerably cheaper than the hotels in the area and also quite nice.
#2 on the caretaker suite, same deal many buildings have that and you're right it is generally the strata with the mortgage on it. It does reduce maintenance costs though in general as if you have a live-in caretaker it is typically cheaper than contracting out to a third party and they are on site and understand the site.
I think simple amenity rooms and a gym are still bar-none the best amenities for owners. Gyms get used a lot and are relatively cheap to run. Amenity rooms too with a pool table, tables, seating, etc., also relatively cheap to run (cleaning only and a bit of maintenance unless people are insane but that's what bylaws are for) and are well used.
Don't need a limo service or a yacht. Most people buying into those buildings that have such things already have enough money to own their own stuff.
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