Condos, just like many other businesses are managed by a board of directors. In most cases they will hire a management company to perform the day-to-day operations but ultimately it is the board who creates and enforces the organizations covenants. For a Condo building to be well run and managed, it must have an active board looking to constantly keep the building in good condition while always sourcing out cost saving solutions. If the cost of running and maintaining the building are not in line with what is budgeted, these costs are passed onto the owners through rising maintenance fees or possibly a special assessment where owners pay a one time lump sum.

The role of the board is so important because the amount of the monthly maintenance fee is directly related to property values. A building with one of the highest maintenance fees in Toronto is The Indigo at 50 Lombard Street which has a fee of more than 90 cents per square foot. Units sell, on average for $229 less per square foot than other condo units in the area. While the Toy Factory Lofts at 43 Hanna Avenue in Toronto is one of the most efficiently run buildings at 31 cents per square foot at which the property value has increased at a higher rate than similar buildings.

By carefully managing monthly expenses,  negotiating contracts and obtaining multiple quotes for services and repairs, the board of directors can save unit owners money on a monthly basis while also protecting their property values. Choosing to get involved by either running for a board position or asking questions at board meetings, will keep you informed and make sure everyone is working together in order to keep the finances in check.