Condo Living – What are Strata Fees and Why Do I Pay Them

Buying a condo is a great way to get your foot onto the real estate ladder in the Okanagan - or downsize. And with more property developments arriving near Kelowna lifestyle amenities, now is a great time to get into an apartment.

However, the biggest hesitation from first-time home buyers is the question of strata fees. Determining what strata fees are, the average cost of strata fees and what strata fees cover are all common questions we can help you answer.

Read on to learn the ins and outs of strata fees in BC.

Strata fees are monthly expenses collected by a strata corporation to pay for community expenses such as building upkeep, landscaping and repairs.

A unit’s strata fee is commonly determined by calculating a strata’s annual expenses and dividing the total by the number of units within the lot. This price increases by the total square footage of a home. The larger the square footage, the larger the strata fee will be.

Interestingly, the square footage of your living space factored into the strata fee calculation does not include the size of your balcony, providing a bonus to those with large balcony living spaces.

However, this calculation determined by square footage is not always the determining factor. Many stratas will opt for using a flat rate for their units.

If you decide to buy a strata-managed unit in the Okanagan, or anywhere in BC and use it as a rental property, be aware that the landlord is still required to pay the strata fees. Renters are not responsible for strata fee payments.

Essentially, condo fees and strata fees are synonymous. Both consist of monthly costs to cover certain utilities, upkeep, repair and landscaping. Condo fees can additionally cover unique building amenities like gyms or indoor pools.

Monthly strata fee payments go towards two funds that every strata corporation in BC must maintain: an Operating Fund and a Contingency Reserve Fund (CRF).

The Operating Fund is used to pay for common expenses that maintain the building or costs that occur more than once over a year. These expenses include building insurance, property manager’s fees, gardening, garbage collection, water, maintenance of the common property, upkeep of amenities, cleaning, repairs and so on.

A CRF is a fund used to pay for expenses that occur less than once a year or more unusual expenses. These might include lobby upgrades, a new roof or new gutters. When purchasing a condo – it is always important to be informed of the current CRF amount. If the CRF amount is low and an expense comes up, you may have to pay extra to the strata to cover the costs.

The amount of strata fees owed each month depends greatly on the building and city you reside in. There are many variables, such as the type of management and amenities offered in certain locations as well. In Kelowna, strata fees range from approximately $0.20/square foot, up to around $0.50/square foot, with $0.35 being the average.

The higher end of strata fee prices typically comes from buildings that offer “wet” amenities, such as pools, hot tubs, water features and other luxurious expenses like 24-hour concierge services.

Whether you’re looking to move to Kelowna or searching for more information about our amazing city, we have the resources you need to make your home-buying decisions. Be sure to visit our website to see our home buyer resources, view our Kelowna listings, or contact us for the best real estate expertise in Kelowna.