Dues are the most misunderstood line in condominium ownership. Here is where the money goes, what a reasonable rate looks like, and the warning signs of a badly run building.
Association dues fund everything outside your own front door: security, lifts, water pumps, corridor lighting, the pool, the gym and the staff who keep all of it working.
They are usually charged per square metre per month, which means a larger unit pays proportionally more. What counts as reasonable varies with the amenities, but a building with a pool, a gym and twenty-four hour security sits in a predictable band — and one charging far below that band is usually deferring maintenance.
Ask to see the reserve fund before you buy. A healthy building sets money aside for lift replacement and facade work years ahead. A building with no reserve will eventually issue a special assessment, and you will pay it as the current owner regardless of who created the shortfall.
Watch for high arrears, too. If a large share of units are behind on dues, the shortfall is covered by everyone else, and services degrade accordingly.
The best indicator costs nothing: visit the building on a weekday and look at the service areas rather than the lobby. Well-run buildings are tidy where nobody is meant to be looking.
