How to Justify a Condo Fee Increase to Owners in Ontario (Board Communication Guide)

Table of Contents

In this guide, you’ll learn how to:

• Break down the reasons behind your condo fee increase

• Communicate fee hikes clearly and confidently

• Provide economic context and owner reassurance

• Build trust and reduce complaints

Step One: Break Down What’s Changing and Why

Owners want to know what’s behind the increase. By outlining key line items and the reasons they’ve gone up, you show transparency and build trust. Here are some examples of explaining it clearly:

Utilities (Hydro, Gas, Water)

Utility costs are rising across Ontario due to inflation, carbon pricing and rate adjustments. Even with usage remaining flat, costs can increase. Here’s what we did:

1. We reviewed the seasonal usage.

2. Ensured there were no leaks or overages.

3. Then, we searched and implemented utility-cost-saving strategies.

Landscaping & Snow Removal

These service providers are also impacted by inflation, particularly rising fuel and labour costs. Contracts include annual increases, but to combat as best we can without reducing the level of service, we:

1. We sent out multiple quote requests to create competition for our contract.

2. Bundled our services for a discount where we could.

3. Then locked in pricing ahead of the winter season to avoid any mid-season rate spikes.

Reserve Fund Contributions

This is the largest portion of your fees and is determined by your Reserve Fund Study (RFS). These contributions must meet projected needs for major repairs like roofs, balconies and repaving. What we did to help:

1. We followed the RFS recommendation exactly.

2. We did not overfund nor did we underfund. This keeps your condo legally compliant and financially healthy.

Step Two: Connect to the Bigger Picture

Many of the increases you're seeing mirror what's happening across the economy:

• Inflation continues to push up service and material costs

• Labour shortages are increasing contractor pricing

• Fuel surcharges affect nearly every vendor

Condo corporations aren’t immune to these shifts, but your board and management team work hard behind the scenes to soften the impact wherever possible.

Step Three: Acknowledge the Work Done to Control Costs

Fee increases aren’t a sign of mismanagement; they’re a reflection of proactive, responsible planning. Here’s what your board and management did to keep the increase as low as possible:

• Compared multiple bids before renewing any contract

• Delayed non-urgent projects where safely possible

• Avoided emergency costs through preventive maintenance

• Negotiated early renewals to beat inflationary escalations

This level of effort makes sure every dollar spent is necessary, justified, and cost-controlled.

Final Thoughts for Board Members

Raising condo fees is never easy, but when it’s done transparently, with clear reasoning and evidence of cost control, most owners understand. They want to know their property is being maintained, protected, and managed well, and that’s exactly what this kind of communication delivers.

If your increase is above typical inflation (2–4%), consider including a custom breakdown in your budget notice or AGM package that clearly shows the largest cost changes and what steps were taken to mitigate them.

Need help building owner trust around your next budget increase? Talk to our team about supporting your board.

Wanting to learn more about condo fees? Here are some other helpful articles:

1. How Condo Fees Are Calculated: A Guide for Board Members in Sarnia and London

2. What are Condo Fees? And All Things Condo Fees

3. How Much Should Your Condo Board Contribute to the Reserve Fund?

4. What Happens If Multiple Owners Stop Paying Their Condo Fees