Can We Get a Rebate on Condo Maintenance Fees Due to Covid 19 Condo Amenities Being Shut Down? Best real estate agents in Toronto
Sunday Dec 20th, 2020
**CHECK OUT THE FULL TRANSCRIPT BELOW**
A past client had asked a really good question that perhaps some condo owners might be wondering as well. They had asked if they could get a rebate on their condo maintenance fees due to condo amenities being shut down as a result of covid 19.
The vast majority of condo buildings in Toronto have their gyms, saunas, swimming pools, meeting rooms, party rooms and rooftop terraces all shut down due to covid 19, to help avoid the spread of the virus. Since condo residents are not able to use these amenities, we might wonder if there was a way we could get a rebate on our monthly condo maintenance fees.
Watch the video for the answer and to also learn what most of your condo maintenance fees help to pay for.
Thank you for watching!
Below are the clickable TIMESTAMP links for the video
00:06 - the question that a past client had asked
00:23 - the quick and short answer to the question
00:36 - the reason why many condo amenities are shut down temporarily
1:09 - the first reason why owners are still required to pay condo fees
1:39 - the second reason why owners are still required to pay condo fees
2:01 - the third reason why owners are still required to pay condo fees
2:33 - the fourth reason why owners are still required to pay condo fees
3:11 - the fifth reason why owners are still required to pay condo fees
Full Video Transcript:
Hey guys, it's Karen from Toronto here.
Just had a past client ask an interesting question. They asked why they're still paying their full monthly condo fees when the amenities in their building have been closed down for several months due to covid-19. And they were wondering if there was a way to get a rebate on some of those condo fees since they weren't able to use the amenities during that time that they were closed down.
So the short answer is unfortunately, "no". Most likely the condo building will not be offering a rebate on their condo fees.
And as condo owners, we still need to continue paying our monthly condo fees in full. Now because of covid-19, the vast majority of condo buildings in Toronto continue to have their amenities shut down.
So for example, a lot of condo gyms remain closed. This is the same with any swimming pools, saunas, party rooms, meeting rooms and even rooftop terraces that continue to remain closed.
Now, a portion of our condo fees are certainly used towards maintaining the amenities in our condo building. With that being said, there are other key areas that our condo fees help to cover. And let's review those key areas together.
The first reason that residents are required to pay their condo fees in full, is that certain utilities are covered in the condo maintenance fees. Most buildings include water usage and waste collection in their maintenance fees. Some buildings, for instance, may include gas heating or hydro/electricity in their maintenance fees as well. And with an increase of individuals who are working from home due to covid-19, this leads to an increase of utility costs, which our condo fees have to continue covering.
Secondly, to help minimize the spread of covid-19, many condo buildings are paying additional cleaning fees in order to increase the frequency of cleaning and sanitization. And since our condo fees pay for these additional cleaning costs in order to ensure the health and safety of the condo residents, this is likely another reason why we won't see a reduction in condo fees.
Now, insurance premiums are a third item that our condo fees cover. Just like home owners are expected to continue paying their personal home insurance premiums, the same is expected of condo buildings to continue paying their building insurance. Now, condo building insurance covers the corporation in the event of any damage to the building structure or to the common areas. Since condo buildings still require their insurance coverage to continue, this is yet another reason why condo fees still need to be paid in full by the residents.
A fourth reason why condo fees are still required to be paid in full at this time, despite the fact that amenities might be shut down is that there are still employees and contractors who are working full-time to help maintain the condo building. For instance, if your building has security, concierge or Property Management, those staff still need to get paid. There are also cleaning staff that clean the common areas. And condo buildings still have ongoing routine maintenance of elevators and fire alarm systems, by regulation. So it's through our condo fees that these workers are continued to be employed to keep our buildings running smoothly.
Lastly, a very important reason why we continue to pay our maintenance fees despite amenities being shut down, is that our fees contribute towards the building's "Reserve Fund". The reserve fund is basically a bank account that the condo corporation uses to help pay its bills for condo expenses and overall maintenance. And just like our personal bank accounts, it's important to have savings. In the case of a condo building, the corporation needs to ensure that there's enough money saved in the reserve fund, in order to address any future maintenance issues that might occur.
So now you guys know several important reasons as to why condo fees are still expected to be paid in full, despite the fact that some amenities might be shut down temporarily due to covid-19.
Let us know in the comments below if you found this video helpful. And in the meantime, if you have any real estate questions or needs, give us a call.
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