HOW TO Assess and plan for condo fees.

Where do the strata fees go?

In BC every strata corporation must maintain two funds which are funded by your maintenance fees.

The operating fund and the CRF (Contingency Reserve Fund)

The operating fund is used for common expenses which occur more than once over the course of the year.

For example heating, cable and internet are sometimes included in a strata fee which would fall under the operating fund which would result in a higher strata fee but would be offered at a cheaper cost compared to purchasing these services independently.

High strata fees to cover amenities you may never use may be cause to consideration!

—–> DO YOUR HOMEWORK:
1) A wise buyer will look at the strata minutes for history on the building, and the depreciation reports to have an idea what will be required in the next 30 years.

2) Observing these minutes will give you a better picture on the buildings management style, whether problems are being fixed immediately as well as solutions in order to keep the maintenance fees low. Is regular maintenance provided?

3) It is a good idea to have your professional property inspector to review the minutes to determine if what is seen on inspection is reflected in the minutes. Your professional inspector will also be able to help you understand any special assessments and the depreciation report.

Understanding how and when your money will be spent is prudent to understanding your condo fees!

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