Published 10 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
A condominium’s common expense fee pays for the operating budget and the reserve fund contribution, divided among owners according to the percentages set out in the declaration. The headline number is close to meaningless on its own. What matters is what is included, whether the reserve fund is adequate for the work the building is about to need, and what the fee has done over three years. A high fee with utilities included and a healthy reserve is routinely a better buy than a low fee with neither.
What the fee actually is
Every year the board approves a budget. That budget covers everything the corporation spends: utilities for the common areas and, in many buildings, for the units; insurance; management; cleaning; security or concierge; landscaping and snow; elevator maintenance contracts; repairs; administration; and a contribution to the reserve fund. That total is divided among the units in the proportions set out in the declaration — not necessarily by square footage, though it usually correlates — and the result is your monthly common expenses.
Two consequences follow that surprise people. First, your fee is not a price for a service you can shop; it is your share of a budget. Second, it is not optional, and unpaid common expenses can become a lien on the unit.
Why per-square-foot comparisons mislead
The common shorthand is dollars per square foot per month. It is a useful sanity check and a terrible decision tool, because two buildings with identical numbers can be paying for completely different things.
| Building A | Building B |
|---|---|
| 1979, Rexdale, 900 sq ft, $760/month | 2019, The Queensway, 620 sq ft, $520/month |
| Includes heat, hydro, water, basic cable | Includes water only; hydro and heat separately metered |
| No concierge, modest amenities | Concierge, gym, party room, guest suite, rooftop terrace |
| Reserve fund well funded against the study | Reserve fund still building; window wall and garage membrane are decades away |
| Real monthly housing cost: about $760 | Real monthly housing cost: $520 plus $120–$200 utilities |
Building A looks 46% more expensive and is roughly comparable in cash terms. The difference in the reserve fund position is the part that actually decides which one costs you more over ten years.
What is usually included, and what is usually not
| Item | Typically included | Notes |
|---|---|---|
| Water | Almost always | Some newer buildings sub-meter |
| Heating and cooling | Often in older buildings, rarely in newer | Older two-pipe systems are usually common; newer heat pumps are usually metered |
| Hydro | Common pre-1990, rare after | Individual metering became standard for good reasons |
| Building insurance | Always | Covers the building and common elements, not your contents or improvements |
| Management and administration | Always | |
| Common area cleaning, landscaping, snow | Always | |
| Elevator maintenance | Always | Major elevator modernisation is a reserve item, not an operating one |
| Concierge or security | Where present | One of the largest single line items in an amenity building |
| Amenities | Where present | Pools are the most expensive amenity per resident by a wide margin |
| Reserve fund contribution | Always | The line that determines your future |
| Your contents and liability insurance | Never | You buy your own unit policy |
| In-suite appliances and fixtures | Never | |
| In-suite HVAC on many older buildings | Usually not | Fan coil or heat pump replacement can be several thousand dollars |
| Internet and cable | Sometimes, via a bulk agreement | A bulk deal can be excellent value or a locked-in relic; check the term |
Thinking about buying or selling here?
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Jatin Dua, Broker of Record — RE/MAX Quantum Realty Inc., Brokerage. Not intended to solicit buyers or sellers currently under contract with another brokerage.
The reserve fund is the part that matters
Under the Condominium Act, 1998 an Ontario condominium corporation must maintain a reserve fund for major repair and replacement of the common elements and assets, and must have a reserve fund study conducted and updated periodically, with the funding plan reflected in the budget.
In plain terms: an engineer estimates when the roof, the garage membrane, the elevators, the window wall, the boilers, the corridors and the parking structure will need work and what it will cost, and the corporation is supposed to be saving toward it now. When that saving has not happened, there are only three ways out and all of them land on owners:
- Sharp fee increases, often well above the pattern of previous years.
- A special assessment — a lump sum demanded from every owner, which can run from a few thousand dollars to well into five figures per unit.
- Borrowing, which spreads the cost but adds interest, and which owners generally have to approve.
This is why a building with a $520 fee and a thin reserve can be a far worse buy than one with a $760 fee and a strong one. You are not comparing fees; you are comparing whether the bill has been paid or deferred.
Etobicoke-specific patterns
1970s and 1980s corporations across Rexdale, Markland Wood, Kipling, Royal York and the Mill Road cluster generally have larger suites, all-inclusive fees, and reserve funds actively working through garage membranes, window replacement and elevator modernisation. The fee looks high and the suite is often 30% to 60% larger than anything new. Read the reserve fund study carefully; these buildings are at the age where the numbers are real.
Humber Bay Shores towers carry heavy amenity loads — multiple pools, extensive fitness, concierge, guest suites — and waterfront exposure that is hard on window wall and balcony assemblies. Fees reflect it. Look closely at how the reserve fund study treats the building envelope.
Queensway mid-rise from roughly 2015 onward tends to show the lowest fees on paper, because the buildings are young, utilities are metered, and the reserve fund is still in its early accumulation years. That is normal — but budget for those fees to rise faster in percentage terms than an established building’s, because they are starting from a low base and the first reserve fund study updates typically increase the required contribution.
Mimico and Islington span both patterns; the corridor tells you less than the year of registration does.
Questions to ask before you offer
- What exactly does the fee include, item by item?
- Is the unit separately metered for hydro? For heat?
- What have the fees been for each of the last three years?
- Has there been a special assessment in the last five years, and is one contemplated?
- When was the reserve fund study last updated, and what does the funding plan require?
- What major work is scheduled in the next five years?
- Is the corporation party to any litigation?
- Is there a bulk internet or cable agreement, and when does it end?
- Are there arrears on this unit?
The status certificate answers most of these definitively, which is why the review condition is worth protecting. The fee for the certificate is capped at $100 including taxes — the cheapest due diligence in the entire transaction.
How to actually compare two buildings
- Write down each fee and list what it includes.
- Add estimated monthly utilities to the building that excludes them. Now you have a comparable monthly cost.
- Divide by the real usable square footage, not the marketing number.
- Look at three years of fee history for each.
- Read the reserve fund position in each status certificate against the age of the building and the work coming.
- Ask what amenities you will actually use. A pool you never swim in is a line item you pay for monthly, forever.
Frequently asked questions
What do condo maintenance fees cover in Ontario?
Your share of the corporation’s annual budget: common area utilities and, in many buildings, unit utilities; building insurance; property management; cleaning, landscaping and snow removal; elevator maintenance; security or concierge; amenity operating costs; repairs; administration; and the contribution to the reserve fund. They do not cover your contents, your improvements, your liability, your appliances, or in many older buildings your in-suite heating and cooling equipment.
Are high condo fees a red flag?
Not on their own. A higher fee that includes heat, hydro and water and funds a healthy reserve can cost less to live with than a low fee on a building with separately metered utilities and a thin reserve. The genuine red flags are a thin reserve fund against significant upcoming work, a special assessment contemplated, or a flat fee history followed by a sudden jump.
What is a special assessment?
A lump sum charged to owners, over and above regular common expenses, when the corporation needs money it does not have — usually because major repair costs exceeded the reserve fund. Amounts range from a few thousand dollars per unit into five figures. The status certificate must disclose assessments levied and, importantly, ones that are contemplated, which is why having a lawyer read it matters.
How do I check a condo’s reserve fund?
Through the status certificate, which sets out the reserve fund balance and refers to the reserve fund study. Have a lawyer read it and compare the fund against the age of the building and the work the study schedules over the next five to ten years. The certificate fee is capped at $100 including taxes, and the review is the best value in the transaction.
Why are fees lower in newer Etobicoke buildings?
Mostly because the buildings are young and the reserve fund is still in its early accumulation years, and because utilities in newer buildings are usually separately metered so they show up on your own bills rather than in the fee. Expect faster percentage increases from that low base, particularly after the first reserve fund study updates raise the required contribution.
Can condo fees go up? By how much?
Yes. The board sets the budget annually and fees follow it; there is no statutory cap comparable to residential rent rules. Increases at or slightly above inflation are normal and healthy. Large jumps usually signal deferred maintenance catching up, an underfunded reserve, an insurance renewal shock, or an unexpected major repair.
Are utilities included in Etobicoke condo fees?
It depends almost entirely on the building’s age. Corporations registered in the 1970s and 1980s frequently include heat, hydro and water; buildings from roughly the mid-1990s onward usually include water only and meter hydro individually. Always ask which utilities are separately metered before comparing one building’s fee with another’s.
What happens if I do not pay my condo fees?
Unpaid common expenses can result in a lien being registered against the unit, and the corporation has strong statutory collection tools. Arrears also show on the status certificate, which means a buyer’s lawyer will find them. If you are buying, confirm the unit is not in arrears; if you are an owner in difficulty, speak to the corporation early rather than late.
Sources
- Condominium Act, 1998 — common expenses, reserve funds, reserve fund studies, status certificates and liens. Accessed 10 September 2026.
- Condominium Authority of Ontario — owner and buyer guidance on budgets, reserve funds and corporation governance. Accessed 10 September 2026.
- TRREB Market Watch, August 2026 — Etobicoke condominium apartment sales and price data. Accessed 10 September 2026.
Related reading
- The Etobicoke condo buying guide
- Condo special assessments and how to see them coming
- What to look for in a condominium status certificate
- Closing costs on an Etobicoke condo in 2026
- Every Etobicoke condo building, by area
About the author — Jatin Dua, Etobicoke real estate agent
I am Jatin Dua, Broker of Record at RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway in Etobicoke, with more than four years of active GTA transactions and over $100M in sales volume. The fee is the number buyers argue about and the reserve fund is the number that costs them money.
Reach me at connect@jatindua.com or 833-330-1925.