RE/MAX Spring Market Report 2014

or read the entire article yourself  http://remaxoa.com/14/PR/SpringMarket/2014_PR_RPT.pdf 

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How are Maintenance Fees Set?

How are Maintenance Fees Calculated?

Total operating Expenses PLUS a commitment of an additional contribution to Reserve ( that’s what we call  the forced savings account)  

Special assessments are extraordinary items that need to be paid for Once announced. Usually these expenses are Amortized over 3 or 4 years and offer owners a PAY it now price. Once a special Assessment has been declared even selling your unit provides no escape.

Money can be borrowed to make capital repairs and is paid for from the special assessments. The Board of Directors need to pass special By Laws to permit borrowing.

Sample budgets include;    * For discussion purposes only

			% of CEF
	Common Element Fee			1,500,000
	Interest & Other			11,400
				1,511,400
Note	Expenses:
3	Gas		4.8%	29,000
3	Electricity		17.2%	322,600
3	Sewer & Water		5.3%	59,700
3	Intercom		0.1%	2,300
4a	Cleaning Contract		6.7%	125,500
4b	Building - Exterior		1.3%	23,700
4b	Building - Public Area		0.6%	11,900
4b	Building - Flooring/carpet		0.4%	7,900
4c	Plumbing		0.4%	7,400
4c	Venting		0.8%	15,000
4c	Air Conditioning		0.7%	12,300
4c	Boiler/Furnace		0.7%	12,300
4c	Elevator		2.5%	46,000
4c	Fire & Safety		0.8%	15,000
4c	Electrical Repairs		0.1%	2,000
4c	Heat Pump		1.4%	25,700
4c	Recycling System		0.1%	2,000
4d	Grounds - Equipment		0.4%	7,300
4d	Grounds - Landscaping		0.8%	15,000
4d	Grounds - Parking Lot		0.6%	11,000
4d	Grounds - Public Lighting		0.1%	1,500
4d	Grounds - Storm Sewer		0.3%	5,000
4e	Paint - Exterior		0.0%	500
4e	Paint - Public Area		0.2%	3,000
4f	Snow Removal		0.5%	9,500
4g	Garbage Removal		0.7%	13,000
4h	Recreation		0.2%	3,000
4i	Janitorial Supplies		0.1%	2,000
4i	Pest Control		0.1%	1,000
5	Staff Salaries/Benefits		0.0%	0
5	Office Expense		0.3%	5,000
5	Communications		0.3%	5,000
5	Interest and Bank Charges		0.1%	1,500
6	Security		16.6%	311,000
7	Management Fee		5.4%	101,800
	Insurance		1.5%	28,300
8	Professional Fees		0.8%	15,000
9	Reverve Fund - Assessements Repair and Replacement		28.0%	500,000
			100.71%	1,511,400
	Surplus (deficit)			$            69.00
	working subtotals			1,500,000

Contribution to Reserve Fund is calculated by an inspection of the Building by Professional Engineers. This report is called a Performance Audit. The receipt of this report calculates the Remaining Economic Life of each building component. The result of this, is the Cash Flow Reserve Fund Study which explains when things will need to be replaced as they wear out and what monies should be on hand.

Reserve Fund Studies will be conducted every 5 years in accordance with the Condominium Act.   Condo Act 1998    This is now being updated with the New and Improved condo act that is pending approval.  Details here  

If you are considering a condo; ask questions.  Understand its a lifestyle and community that you are purchasing.

Humber Bay  and Toronto West Condo's?   Love to hear from you.