How Condo Fees Are Calculated: A Guide for Board Members in Sarnia and London
Practical Guidance for Smarter Condominium Governance in the Sarnia and London Areas
At Sapphire Condominium Management, we support condo boards across Sarnia and London with everything from daily financial decisions to long-term capital planning. Currently, we help boards manage over $10 million in annual condominium budgetsand one of the most frequent questions we hear from both new and experienced board members is:
“How exactly are condo fees calculated?”
Here’s how it works and what board members need to know to ensure fair and transparent budgeting.
How Condo Fees Are Calculated
Each year, your board (often with your property manager) prepares an annual budget. This budget outlines all expected expenses for the next fiscal year. These expenses are based on:
Past financial data
Known increases (e.g. contracts, utilities)
Projected future needs
Reserve fund contributions
The goal: calculate how much needs to be collected from unit owners to operate and maintain the building without generating a profit, because Ontario condominiums are not-for-profit corporations.
What Expenses Are Included?
Your Condominium Declaration determines what expenses are covered. Here are the five most common categories condo fees cover:
Administrative (e.g. CAO fees, office supplies)
Contractual Services (e.g. landscaping, pest control)
Common Area Maintenance (e.g. minor repairs, janitorial)
Professional Fees (e.g. audit, legal, management)
Utilities (e.g. hydro, water, gas, sometimes internet)
Reserve Fund Contribution (almost always the largest piece of the budget)
Different condo types (like Vacant Land Condos vs. Apartment-Style Condos) will include or exclude certain services. For example, some apartment-style condos include individual water or electricity in common expenses—others don’t.
Always allow for a 1–2% contingency to handle unexpected minor costs.
The “Schedule D”
Once total expenses are calculated, your board refers to Schedule D in your Condominium Declaration. This outlines each unit’s percentage of ownership and determines how much each unit pays in condo fees.
Whether fees are billed monthly, quarterly, or annually depends on your board’s preference—but the formula is always based on unit share × total budget.
If you’d like to learn more about condominium fees, here are some more helpful articles: