If you’re in the luxury condo market, you’re probably looking for a unit that provides superior comfort and aesthetic beauty—all in the middle of a vibrant neighbourhood. Properties that fit this description aren’t just great places to live, they’re also great investments. But they typically come with higher-than-average maintenance and condo fees. 

In addition to having a direct financial impact on you, these fees can affect your property values. That’s why it’s important to understand them to make an informed purchase. In this post, we’ll provide a comparison of maintenance fees in the city’s luxury market and look at how they’re set.  

What constitutes fair condo fees? 

For many unit owners, condo fees are a bit of a mystery. Most people are aware that they go toward utilities, amenities, and building maintenance. But how, exactly, does that monthly number break down? 

The answer is, it depends. Your fees will be a percentage of your condo corporation’s common expenses. For reference, Now Magazine sets out the annual expenses for what it calls a “fairly typical, 300 unit building.”

In Now’s sample building, 32% of common expenses go toward utilities. The second largest expense is shared facilities, at 24% (a gym or yoga studio would fall into this category).

A reserve fund, which goes toward things like major repairs, eats up 18 percent, while 15% is allocated for service and maintenance contracts (which would include window cleaning, pest control, etc.)

The rest of this particular building’s fees (10%) are split between minor repairs, administrative costs, and paying on-site personnel.

This breakdown provides a basic idea of how your fee might be spent, but it varies. To make things more complicated, you might not pay the same amount as your neighbours in the building. Square footage often makes the difference—meaning your fees will likely be higher if you’re looking at one of the building’s larger units. But a condo corporation can create its own criteria, charging you for things like a better view.

This helps explain why fees can be especially high for a large penthouse on one of the top floors of a luxury building.

A building’s age, the amenities it offers, and the level of upkeep it requires will all determine how much your landlord is charging you. In a luxury condo, high-quality materials and fixtures may result in higher fees (hard lofts can be costly because older buildings often require more upkeep).

Don’t forget amenities (many of which would fall into the “shared facilities” category above). If you have a sauna, hot tub, or a green space that requires landscaping, that’s all going to cost more to maintain. 

For comparison, we’ve laid out the fees for condos in three Toronto luxury buildings at different price points.

Toy Factory Lofts 

About the building 

Toy Factory Lofts is a historic, seven-storey building in Liberty Village. It contains 213 loft spaces with ceiling heights that range from nine-and-a-half to 17 feet. While some spaces benefit from soft loft additions, many feature their original warehouse aesthetic (which includes exposed wood, brick, and steel beams).  

The fees

For units without a locker or parking space, owners pay just over 31 cents per square foot. At slightly over half the city’s average (59 cents per square foot for similar units), these fees are incredibly low.

In 2012, Craig Gagliano, the president of the Toy Factory Lofts condo board, reduced fees by 30 per cent. Gagliano believes attractive fees are the reason his property value has increased at a higher rate than it has for similar buildings. 

 

The Indigo 

About the building 

The Indigo is a gorgeous tower designed by Peter Clewes, an award-winning architect. It’s 27 storeys and contains 104 units. The Indigo also includes amenities such as an outdoor rooftop terrace, an exercise room, sauna, BBQ area, and concierge service.  

The fees

The fees on this building are around 90 cents per square foot, making them significantly higher than the city’s 59 cent average. 

One potential reason for these condo fees is the range of amenities that the building provides. A rooftop terrace is truly a luxury, but it does add to fees. Areas such as exercise rooms and saunas can take additional time to clean—plus, the building’s façade is comprised largely of glass.

Of course, unit owners don’t pick The Indigo for low fees. Instead, attractive amenities and semi-private space is a luxury that buyers may prefer. You just need to know who your eventual buyer might be.  

The Four Seasons  

About the building 

This gleaming tower houses some of the most luxurious spaces in the GTA. Building features include a lap pool, yoga studio, a nail salon, and Cafe Boulud (which is part of celebrity chef Danial Boulud’s restaurant empire). 

The rooms are also incredible. A Toronto Life article offers a peek inside one of the suites, which has floor-to-ceiling windows, a marble fireplace, and a guest bedroom with an ensuite bathroom.    

The fees 

Fees at the Four Seasons clock in are well over a dollar per square foot, which is one of the highest prices in the City.

Fees on the condo featured in Toronto Life are $2, 839 per month. In one remarkable example (a $28 million penthouse), they tally over $7,000 each month.  

Condo hotels often charge the highest condo fees. More space commands a higher price tag, especially when it comes to buildings that offer 5-star amenities.  In these spaces, the amenities are one of the most important aspects of the unit experience. Buyers choose the Four Seasons not for a lower price tag, but for the exceptional and over-the-top experience of living there.

The Bottom Line

For luxury buyers, it comes down to what you plan to do with your property. If you’re buying a condo you hope to live in long-term, you need to think primarily about your own budget.  

If you’re planning to rent your unit out, finding a tenant may be more difficult if you expect them to take on high maintenance and condo fees. On the flip side, many buyers are looking for fantastic amenities that enhance their lives, and maintenance fees are an expected part of that.

However you intend to use your property, it never hurts to ask for a detailed breakdown of what the unit’s maintenance fees will cover. 

Have any questions about maintenance and condo fees and how they impact your home’s value? We’d love to chat. Contact us to book a no-pressure meeting.