Condo Fees Demystified

This post explains what condo fees are, what they cover, and why they tend to increase over time. Condo fees are the monthly fees paid by condo owners to a condo corporation to cover expenses associated with maintaining the property. The fees cover six categories, including reserve fund, repairs and maintenance, insurance, utility payments, personnel, and professional management. The reserve fund is an emergency fund set aside for future or unforeseen expenses, and insurance covers a wide range of emergencies. Utility payments cover air conditioning, heating, and other utilities, while personnel covers maintenance and janitorial staff, and professional management refers to the management of the corporation by a professional condo management company. Condo fees tend to increase over time due to the fact that the services required by the condo also increase with time.