Real Estate

Legitimacy of townhouse monthly fee

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  • Apr 7th, 2016 7:25 pm
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Sr. Member
May 5, 2010
971 posts
119 upvotes

Legitimacy of townhouse monthly fee

Hi,

Looking in place of a relative who currently lives in a complex managed by Royale Grande Property Management. I am kind of skeptical of a 650$+ monthly fee for a sub 1200 sq-ft unit. Who usually decides which property management company to hire and how monthly fees paid by residents are allocated?
8 replies
Deal Addict
Aug 20, 2007
1983 posts
794 upvotes
Kitchener
It all depends on what the fee covers. In some cases its minimal and in other cases it covers everything from garbage, water/hydro, lawn cutting, maintence/repair on the exterior of the units which would include windows, roofs, siding, etc.
Deal Guru
Feb 9, 2006
13378 posts
8308 upvotes
Brampton
The condo board. It sounds like these aren't freehold townhomes so they'll have a board like a regular ol condo.
Deal Fanatic
Sep 23, 2007
5654 posts
2168 upvotes
Condos have a governance system. A board of directors is elected from the residents. There's an annual meeting to make certain decisions, including budget decisions and choice of property management.

$650 is a bit high but as peelhic said, it depends on what's covered. Some condos include water/hydro (which is usually a tragedy in my opinion as residents all act selfish). Some condos have high maintenance due to design/directions residents want. Sometimes it's high due to certain issues like a sudden massive repair or whatever. One thing is for sure: it's always higher than what you'd like and there's only room to go wrong.
Deal Addict
Aug 12, 2004
4511 posts
2168 upvotes
Calgary
I own a townhouse condo, and condo fees covers building insurance, reserve, street maintenance, patio maintenance, roofing, landscaping, snow removal, lawn cutting, water. 350$ a month, and is per unit, not measured based off square foot. Reserve is very healthy.

650 monthly could includes additional stuff like internet / TV, pool, etc. No one can tell you what is in it without you checking the condo documents or simply just asking...
Sr. Member
May 3, 2013
760 posts
475 upvotes
Toronto
For a 1200sf unit, $650 doesn't jump out at me as high in general. At that fee, I would guess the complex has the usual amenities of rec room, swimming pool, gym, etc. Hydro may or may not be included, I'll guess it's not.

If you want the property management changed, or services decreased to lower maintenance fee, bring it up to the board. A majority of the owner would have to show up to the meeting and the majority has to vote on the change.

If you are skeptical, you can look over the accounting statements to see where those fees are going.
Deal Fanatic
User avatar
Dec 27, 2009
7941 posts
5483 upvotes
Victoria, BC
That sounds really expensive for a townhouse fee. Another reason I can't stand strata properties. At least with my freehold I can choose what I spend for a variety of things and when.
Deal Addict
Apr 4, 2013
1274 posts
410 upvotes
You are asking the question that everyone who pays condo fees will eventually ask - at what point are the fees too high and start to become a deterrent. Look at it this way - if you were to pay about $140,000 more for a freehold town home, your monthly payment would increase about $650.
Deal Fanatic
Jan 18, 2003
6484 posts
2389 upvotes
Mississauga
What is the age of the complex... The older, the more maintenance required... Hence the higher condo fee...

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