How to minimize maintenance fee shocks when shopping for a condo

There's no avoiding maintenance fees if you buy a condo, but there are ways to reduce the risk of nasty surprises down the road.

There's no avoiding maintenance fees if you buy a condo, but there are ways to reduce the risk of nasty surprises down the road.

Taking a closer look at potential building expenses is important these days, says Jamie Herle, president of the Canadian Condominium Institute, as costs rise for everything from insurance to energy to labour and materials.

"Especially with the economy as it is right now, and the world as it is right now, all these input costs, if you have any repairs or anything that has to happen, they're going to be a lot more than they were budgeted for a year ago."

Given the potentially higher repair costs, it's important to understand the health of the building, both by walking around and looking for potential issues like water damage, and by poring through condo documents like the status certificate and condo board meeting minutes.

"You have to actually go through and do your due diligence," she said.

Along with a mortgage and property taxes, condo owners must pay a separate monthly fee that covers the costs of the building's operation, which generally include immediate expenses like security, cleaning and some utilities, as well as contributions to a reserve fund for bigger repair jobs down the road.