The condo corporation's master insurance policy covers the building structure, common elements and liability. This is a significant expense that the condo fee covers. As a detached homeowner, you pay your own building insurance ($1,500 to $3,000+ per year). In a condo, it is included. You still need your own condo unit insurance policy (covering contents, improvements and personal liability) but that is typically $300 to $600 per year, a fraction of what you pay for detached home insurance.

Most condo buildings in Richmond Hill include water in the condo fee. Many also include heat (especially buildings with central heating systems). Some newer buildings have individual metering for hydro and gas, which means you pay those separately. I confirm what is included and what is excluded on every building before recommending it to a downsizing client. The utilities included in the fee can represent $200 to $400/month in costs that detached homeowners pay separately.

Hallways, lobbies, elevators, parking garages, stairwells, the roof, exterior walls, windows (in most buildings), landscaping, snow removal, garbage collection, recycling, common area lighting and HVAC systems. Everything outside your unit walls is maintained by the condo corporation using your fees. As a detached homeowner, you handle (or pay for) all of this yourself.

A portion of every condo fee goes into the reserve fund, which is the building's savings account for major capital repairs: roof replacement, elevator modernization, parking garage waterproofing, window replacement, boiler replacement and other large-ticket items. In a well-managed building, the reserve fund is adequately funded to cover these costs without special assessments. In a detached home, you are the reserve fund. When the roof needs replacing, you write the cheque. The reserve fund contribution is the condo equivalent of the maintenance savings you should be setting aside as a homeowner but often do not.

Fitness centre, pool (in some buildings), party room, guest suite, rooftop terrace, concierge or security desk, bicycle storage and other shared amenities. These are facilities that would cost tens of thousands of dollars to build and maintain in a private home. In a condo, the cost is shared across all owners through the monthly fee. If you use even two or three of these amenities regularly, the value exceeds what you could access for the same cost on your own.

The professional management company that runs the building: handling maintenance requests, coordinating contractors, managing the budget, enforcing rules, communicating with owners and ensuring the building operates smoothly. In a detached home, you are the property manager. You call the contractors, schedule the repairs, manage the budget and deal with every issue yourself. The condo fee pays someone else to do all of that.

You pay property tax separately, directly to the municipality. Condo property taxes are significantly lower than detached home taxes because the assessed value is lower. A condo unit assessed at $500,000 pays roughly $3,000 to $4,000/year in property tax versus $8,000 to $12,000+ for a detached home assessed at $1.2M to $1.8M.

The building's master policy covers the structure. You need your own condo unit policy covering your contents, any improvements or upgrades you have made to the unit, personal liability and loss assessment coverage. Typical cost: $300 to $600/year.

Some buildings include hydro in the condo fee. Others have individual meters where you pay your own electricity bill. Newer buildings are more likely to have individual metering. I confirm what is included and what is separate on every listing.

Everything inside your unit walls is your responsibility: appliances, in-suite plumbing, in-suite electrical, flooring, paint, fixtures. The condo fee covers the building and common elements, not your individual unit's interior maintenance. That said, the interior maintenance of a condo unit is a fraction of what a detached home requires because the scope is so much smaller.

The reserve fund study is an engineering report (updated every 3 years in Ontario) that projects the building's major repair and replacement costs over the next 30 years and assesses whether the current reserve fund balance and contribution rate are sufficient to cover those costs. Look for whether the fund is "adequately funded" or "underfunded." An underfunded reserve means either fee increases or special assessments are coming.

The audited financial statements show the building's operating budget (what it spent versus what it collected), the reserve fund balance and any surplus or deficit. Look for whether the building is running a surplus (good) or a deficit (concerning). A building consistently spending more than it collects will need to raise fees or levy a special assessment.

The rules and bylaws govern daily life in the building: pet policies, balcony usage, noise restrictions, renovation approvals, guest parking and move-in procedures. The board meeting minutes reveal ongoing issues: are there complaints about noise, maintenance delays, budget disputes or litigation? Reading the minutes from the past 12 to 24 months gives you a sense of how the building operates and whether there are unresolved problems.

The status certificate discloses any pending lawsuits involving the condo corporation and any planned or anticipated special assessments. Litigation is not automatically a deal-breaker (buildings sometimes sue contractors for deficient work, which is a positive sign of accountability) but it needs to be understood. Special assessments that are planned or anticipated represent costs that will come out of your pocket after you purchase. Your lawyer should review these items carefully.

If the reserve fund study shows the fund is significantly below where it should be, major fee increases or special assessments are likely. Ask your lawyer to quantify the shortfall and estimate the potential impact on your monthly fees.

One special assessment in a building's history is not unusual (unexpected repairs happen). Multiple special assessments suggest chronic underfunding or poor financial management. Each assessment can cost individual owners $5,000 to $30,000+ depending on the scope.

Unusually low condo fees can be a warning sign rather than a benefit. If a building's fees are significantly below comparable buildings, it may mean the reserve fund contribution is too low, maintenance is being deferred or the building is running a deficit. Low fees feel good monthly but can result in large special assessments or rapid fee increases later.

If a significant number of owners are behind on their condo fee payments, the building may struggle to meet its operating budget and reserve fund obligations. High arrears often correlate with a higher rental-to-owner ratio and can signal broader financial stress in the building.

Condo fees increase over time (inflation, rising insurance costs, aging systems). Annual increases of 2% to 4% are normal. Increases above 5% annually or sudden large jumps suggest the building was undercharging previously or is facing unexpected costs. Review the fee increase history for the past 5 years as part of your due diligence.

The difference between a building that includes heat, water, hydro and building insurance and one that only includes water and common element maintenance is $200 to $400/month in additional costs you pay separately. I confirm the inclusions on every building before recommending it.

The reserve fund study answers this question directly. "Adequately funded" means the building can cover projected capital repairs without special assessments. "Underfunded" means fee increases or assessments are coming. This is the single most important financial question for any condo purchase.

Consistent 2% to 4% annual increases are normal and expected. A building that has not raised fees in years is likely underfunding its reserve. A building with sudden large increases may be catching up from prior underfunding. The fee increase history tells you whether the building manages its finances proactively or reactively.

Buildings with a higher percentage of owner-occupants tend to be better maintained, have more engaged boards and develop more community. A building where 60%+ of units are owner-occupied is generally healthier than one where 60%+ are investor-owned rentals. I check this ratio on every building I recommend to downsizers.