What to Expect With Condo Fees

For many people, buying into a condo development in Kamloops is one of the easiest ways to acquire property within BC. Choose the right development, the right terms and the right location and you can expect smooth sailing ahead.

However, there is something that threatens to disrupt the party, something that you must be aware of; condo fees. Basically, a condominium development must pay for its upkeep and management by levying fees from its residents. If run correctly, these fees pose little problem; if poorly managed, they can cause a potential headache. Here’s what you can expect.

Special Assessments

Everything from insurance premiums and snow removal to lawn mowing and basic repairs must be paid for by the condominium corporation, something which will usually be exacted from the resident in the form of fees, usually paid monthly or annually.

However, if there is a shortfall in the funds required to meet the development’s financial obligations, the remainder will be recouped via ‘special assessments’, which are additional fees voted on by the condominium committee. These special assessments are usually only required in the event of an unforeseen emergency. If they occur repeatedly with no apparent cause, this is evidence that the development is being badly run.

Demonstrable Track Records

One way to avoid repeated additional costs on a condominium development is to shop around, looking for an older development with a low turnover of residents. If you are interested in investing in the development, the committee should be happy to share a record of fee increases, additional levies and past maintenance work done with you.

If the development is being run well, the record should reflect this, giving you a clear indication of where the fee increases have come from, where the money is being spent, and whether or not the development is an optimal place to live.

Increasing Fees on Newer Developments

It goes without saying that newer developments will not have this long track record of competent management to draw upon, so investing in a new development is always going to be something of a gamble.

Something that can cause problems on new developments is the Condominium Property Act which requires that all new developments must establish a capital reserve fund of an adequate size to look after the interests of the development within two years of its incorporation. While this law is in place to protect the interests of residents, it can result in a nasty surprise for these individuals as the deadline looms and the development’s managers are forced to levy an increased fee.

The key to a happy and harmonious time in your condominium is research. Is the development being run properly? Does it have a track record of responsible ownership and accountability? Do former and current residents have good things to say about it? With a little digging, these questions shouldn’t be too difficult to answer. Contact me today for more information or to get started on buying/selling your home in Kamloops!