I Hate Strata Fees
Oh those wonderful fees all you strata owners have to pay. Every month there goes the strata council digging into your pocket to extract several hundred dollars to pay for… what is necessary and needed.
People who dislike strata fees often don’t understand where the money is going or disagree strongly with how the money is being managed.
What do the fees cover?
- Maintenance of all the common areas, including hallways, elevators, boilers (if not in suite), exterior features such as windows, roof, ducts, and lobbies.
- Groundskeeping such as lawn care, planting, and pruning.
- Garbage and snow removal.
- Insurance (hey, you only need content insurance and that is cheap!)
- Management fees (someone needs to organize all this)
- and the Contingency Fund for all those emergencies that may happen and general replacement schedules that need to be met without a big bill coming your way.
Some people have this idea in their heads that they would rather own a home without strata payments as if that is going to be somehow cheaper to live in on a month to month basis. What they do not realize is that in owning your own home you still need to pay for insurance and should be saving a contingency fund on your own. Imagine not saving for that rainy day. Is your roof in good shape? It better be. If not, I hope you have the funds to pay for a new roof. And what other wearable items within home ownership do you need a contingency fund for? How about a new boiler, new furnace, landscaping due to an infestation or dry summer, exterior paint, updated windows, or a new garage door motor? There are a lot of things that can go wrong that an insurance policy does not cover.
Roofs need to be replaced every 25 years on average, though if you bought a home with a cheap one even sooner (don’t get a cheap roof and get a highly referred, highly qualified roofing company to do it for you). Furnaces and Boilers, depending on use, last on average about 15 years. Be prepared for these costs by saving now and saving every month in your own “contingency fund”.
You can definitely save on your own personal strata fees by doing a lot of work yourself, especially gardening. Most do. But if you want a gardening crew to come to your home every week then there is another cost. I know some folk who absolutely hate the time their home demands from them. They hire it out.
Oh, and don’t forget that many strata condos have a gym/pool facility (your opinion of the quality and use/value of may vary). So throw in a gym membership every month, as well.
Taking all those costs into account strata fees start to look like a non issue, don’t they?
That is unless you really feel that your council is mucking around and not delivering value for your dollar. In which case it is time for you to run for council and get your voice heard. Yes, it is a democracy and you do have a say. Get involved and get things done. Look at your minutes and budgets. They get delivered when available. If you have a question, comment, or concern then get the answers you need. Remember that it is your home and it is your building and just because these services are provided does not mean that you do not need to be concerned with them. Silence is acquiescence.
Vancouver, BC 
The problem is that sometimes the counsel members think about their best interests first. For example, 4 out of the 7 members own townhomes, on the ground level and they decide to spend $15K on painting the fences.
This is a great article. I think a lot of people have misconceptions about strata fees and do feel they are at least, in part, a waste of money. However as you point out in your article, they do cover a lot of things that people don’t normally think about. Of course you can skimp on a lot of it by owning your own home, but that is certainly at your own peril.
I do prefer those stratas that have lower fees and less coverage though. Often times frivolous items are covered such as gym membership (do you notice condo gyms are very lightly used?) or included natural gas (only good if you use lots, but in this environmentally conscious world, why would you).
Good article.