Condo Living

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

The Importance of a Condominium Audit

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

What Do Condo Fees Cover?

Condominium fees fund various aspects of property management, including:

General Maintenance

Condominium fees are used to maintain shared areas such as restrooms, lobbies, and parking lots. This includes routine repairs, landscaping, cleaning, security, and snow removal.

Administration Costs

These cover daily operations, including property management fees, utilities, equipment, legal counsel, supplies, and staff salaries.

Financial Reports

Condominium Corporations are required by the Condominium Property Act - subject to regulations - to prepare three key financial documents each year: 1) financial statements for the previous fiscal year, in accordance with Canadian generally accepted accounting principles (GAAP), 2)an annual report on the reserve fund, and 3) an annual budget for the corporation’s fiscal year that immediately follows the corporation’s preceding fiscal year. While the process requires efforts, it is an effective component to help safeguard a corporation's financial integrity.

Insurance Premiums

Condominium corporations in Alberta are required to have insurance for property replacement, liabilities, and specific perils like fire, water damage, or windstorms. This ensures protection for both residents and board members.

Insurance Deductibles

This fund helps pay deductibles for insurance claims and covers expenses excluded or exceeding the condominium’s insurance limits.

Reserve Fund

A reserve fund acts as a financial safety net for unexpected expenses such as roof replacements, major landscaping, or parking lot repaving. This ensures the property’s long-term financial stability.

Concierge Services

Some condominiums offer concierge services, enhancing resident convenience with assistance for security, mail delivery, and general maintenance.

Amenities

Condominium fees also cover the upkeep of amenities like fitness centers, pools, community rooms, and more. These features often attract buyers but increase maintenance costs.

The Advantages of Condo Fees

Though they may seem burdensome, condominium fees are vital to maintaining the property’s financial health. They allow owners to share costs, ensure the upkeep of amenities, and enhance residents’ quality of life. By understanding condominium fees, owners can better protect their investments and contribute to the community’s success.

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Sundeep Bir, Partner
S. Bir Professional Corporation