Condo fees are one of the most misunderstood parts of buying a condo in Calgary. Some people see them as a deal breaker, others barely look at them at all. The truth sits somewhere in the middle.
If you’re buying or already own a condo, understanding how condo fees work, what they cover, and what they can tell you about a building is essential. These fees affect your monthly budget, long term costs, and even resale value.
Condo Fees at a Glance
Here’s the quick version:
Condo fees are mandatory monthly payments
They cover shared maintenance, services, and building expenses
Fees are based on unit size, building type, and amenities
In Calgary, condo fees usually range from $0.50 to $1.00 per sqft
Part of your fee goes into a reserve fund for major repairs
Very low fees can be a red flag
Condo fees almost always increase over time
What Are Condo Fees?
Condo living offers a low maintenance lifestyle, but that convenience comes at a cost. Condo fees are monthly payments made to the condo corporation to cover shared expenses for the building.
These fees pay for the upkeep of common areas, building operations, and long term maintenance planning through the reserve fund.
Not every unit pays the same amount. Fees are usually calculated based on unit size, so larger units generally pay more. Buildings with more amenities also tend to have higher fees.
Condo fees are paid on top of your mortgage, property taxes, and personal insurance. While lower fees can look attractive, they sometimes signal underfunded reserves or deferred maintenance, which can lead to costly surprises later.
What Do Condo Fees Cover?
What’s included can vary from building to building, which is why reviewing the condo documents is so important. In Calgary, condo fees often include some utilities, but not always all of them.
Condo fees commonly cover:
Maintenance and repairs of common areas like hallways, lobbies, and elevators
Utilities such as water, heat, garbage, and sometimes electricity
Landscaping and snow removal
Building insurance
Amenities like gyms, pools, or party rooms
Security and concierge services where applicable
Property management services
Contributions to the reserve fund for future major repairs
Think of condo fees as a structured way of paying for long term building costs. Instead of being hit with random repair bills, you’re paying gradually over time.
What Condo Fees Do Not Cover
Even with condo fees, there are still expenses you need to budget for separately.
Property taxes: These are always paid separately to the City of Calgary. For a $300,000 condo, taxes are often around $2,000 per year, depending on the area.
Personal condo insurance: The building’s insurance covers the structure and common areas, but your personal belongings and liability inside the unit are your responsibility. Expect roughly $300 to $500 per year.
Parking and storage: Some buildings charge extra for parking stalls or storage lockers, especially in downtown or inner city locations.
Special assessments: If the reserve fund cannot cover a major repair, owners may be charged a one time special levy. These can range from a few hundred dollars to tens of thousands.
How Are Condo Fees Calculated?
Condo fees are based on several factors, including:
Unit size
Type of building and amenities
Annual operating budget
Shared utility costs
Maintenance and repair needs
Reserve fund contributions
Building age
Inflation and rising service costs
Older buildings often require more frequent repairs, which usually means higher fees or increased reserve fund contributions.
How Much Are Condo Fees in Calgary?
Most Calgary condos fall between $0.50 and $1.00 per square foot.
For example:
A 1,000 square foot condo with basic amenities might pay $500 to $750 per month
A similar unit in a luxury building with a gym, concierge, or pool could exceed $1,000 per month
Condo fees almost always increase over time as costs rise and buildings age. Reviewing the financials before buying helps you understand not just today’s fee, but where it’s likely heading.
Reserve Funds and Special Levies Explained
What Is a Reserve Fund?
The reserve fund is essentially the building’s savings account. Every owner contributes to it through their condo fees. This fund pays for major future repairs like:
Roof replacements
Elevator upgrades
Window replacements
Structural repairs
In Calgary, harsh weather, freeze thaw cycles, and Chinooks can be tough on buildings, especially older ones.
What Happens When the Reserve Fund Is Too Low?
If a major repair comes up and the reserve fund doesn’t have enough money, owners are charged a special levy. This is in addition to your regular condo fee and can be financially painful.
The Reserve Fund Study
Well managed buildings complete a reserve fund study every 3 to 5 years. This professional report outlines upcoming repairs, estimated costs, and whether the reserve fund is on track.
Always review this document before buying. It tells you more about the building’s health than almost anything else.
Red Flags to Watch For
Condo fees far lower than similar buildings
No recent reserve fund study
Declining reserve fund balance
Visible deferred maintenance
Multiple special assessments in recent years
How to Evaluate Condo Fees Before Buying
Don’t stop at the monthly number. Dig deeper.
Review financial statements: Look at the last few years and check whether the reserve fund is growing and whether the building runs consistent deficits.
Study the reserve fund report: This shows what repairs are coming and whether special levies are likely.
Check fee history: Annual increases of 2 to 3% are normal. Bigger jumps can signal trouble.
Compare similar buildings: If one building is charging much less than others nearby, find out why.
Understand what’s included: A higher fee might include heat or water, which could actually save you money overall.
Ask about upcoming special assessments: Always ask if any are planned in the next 12 to 24 months.
Common Condo Fee Questions
Do condo fees include utilities?
Sometimes. It depends on the building. Always confirm exactly what’s included.
Can condo fees change over time?
Yes. Increases are normal and should be expected.
Are condo fees tax deductible?
Only in certain situations, such as rental properties or home offices. Always check with a tax professional.
What happens if condo fees aren’t paid?
Late fees, interest, legal action, and even liens can occur. Condo fees should always be paid on time.
Do condo fees include property taxes?
No. Property taxes are always separate.
How are special levies handled?
Owners receive notice outlining the cost and payment options. These are one time charges for major expenses.
Conclusion
Condo fees aren’t just an extra monthly cost. They provide information on how well a building is managed and how prepared it is for the future.
Understanding what you’re paying for, what’s included, and how the building plans ahead can help you avoid costly surprises and make a smarter buying decision.
If you’re thinking about buying a condo or want help reviewing condo documents before making a move, feel free to reach out. I’m always happy to walk through the details and make sure you’re buying with confidence.
