Condominium fees are paid monthly and are based on the Corporation’s annual budget for shared common expenses. A condominium fee (common expenses) consists of several components. These expenses vary widely depending on the building and amenities available like pools, fitness facilities, concierge services and exterior features, etc.:
an amount for the operation of the condominium
contributions to reserve funds which is money set aside to fund major repairs and replacement of property components and systems that deteriorate over time, and
an amount to pay for a portion of facilities shared with other condo corporations (like a parking garage or recreation centre), if applicable.
The corporation's declaration states the portion each owner must contribute to the budget. This portion is expressed as a percentage and may vary often by the size of the units.
The annual budget is typically developed by management in consultation with the Board of Directors. The Board reviews the budget in detail, makes adjustments and approves it.