Condo Living

June 4, 2025 Published by South Alberta Chapter - By Sundeep Bir

What Condominium Fees Are Used For?

From the Spring 2025 issue of the CCI South Alberta CCI Review

Owning a condominium can be a costly endeavor, with owners required to pay various fees to keep their investment running smoothly. These condominium fees, paid by all residents, are essential for property upkeep and maintenance. As a condominium corporation owner in Canada, understanding how these fees work is crucial to ensuring you maximize your investment.

What Are Condominium Fees?

Condominium fees are payments collected by the condominium association to cover property upkeep and maintenance. These costs vary depending on factors like location, unit size, and available amenities. For instance, condominiums in suburban settings typically have lower fees compared to urban areas with higher living costs. Similarly, luxury condominiums with highend amenities often come with higher fees due to increased maintenance requirements.

By understanding these factors, condominium owners can better gauge the financial commitments associated with their property.

Understanding Canadian Condominium Fees

In Canada, condominium fee regulations vary by province, with each region setting its own guidelines. For example, Alberta follows the Condominium Property Act, which governs reserve fund studies and fee management. Condominium fees in Alberta generally cover expenses such as reserve fund contributions, insurance, and maintenance. Local real estate market trends, particularly in cities like Calgary and Edmonton, can also influence these fees.

Can Condominium Fees Fluctuate?

Yes, condominium fees can fluctuate. Numerous factors, including the condominium’s overall budget, unit size, and economic conditions, influence the amount residents pay. Larger units generally incur higher fees than smaller units. Additionally, inflation and changes in utility costs can cause fees to increase over time. For instance, in 2022, many residents experienced significant fee hikes due to rising utility expenses.

How Are Condominium Fees Determined?

The calculation of condominium fees is usually straightforward:

Condominium Fee = (Total Contributions × Unit Factors of Your Condominium) / Total Unit Factors of All Condominiums)

When a condominium is built, developers assign unit factors based on the size of each unit. Larger units have higher unit factors, leading to higher fees. These unit factors are outlined in the condominium’s bylaws and generally remain consistent throughout the property’s lifespan.

How Much Are Condo Fees in Alberta?

Condominium fees in Alberta vary significantly depending on location. In Edmonton, the average cost is approximately $0.35 per square foot, while Calgary residents typically pay around $0.50 per square foot. For instance, a 1,000-square-foot unit in Edmonton would cost about $350 per month, whereas the same-sized unit in Calgary would cost $500. Luxury properties often have higher fees to account for enhanced amenities.

Sundeep Bir, Partner
S. Bir Professional Corporation