What Do Condo Fees Cover in Ontario? What Owners and Boards Should Understand
(From a Condominium Management Expert)
Practical Guidance for Smarter Governance in London & Sarnia, Ontario
Every owner in your building pays condo fees each month, yet very few people could say exactly what those payments buy. When owners do not understand where the money goes, board members end up fielding the same frustrated questions at every annual general meeting, and every fee increase feels like a fight.
So what do condo fees cover in Ontario? This guide breaks down where the money goes, what fees do not cover, and what your management company should be showing you so every dollar is accounted for. By the end, you will be able to explain your fee to any owner in plain language, and recognize the gaps if your current reporting falls short.
What Do Condo Fees Cover in Ontario?
Condo fees in Ontario cover the shared costs of running your condominium corporation: maintenance of the common elements, contributions to the reserve fund, the corporation's insurance premiums, shared utilities, and professional services such as management, auditing, and legal support. The Condominium Authority of Ontario (CAO) describes these payments, also called common expense fees or maintenance fees, as what owners pay to maintain common elements like the parking garage, hallways, lobby, and elevators, and to shore up the reserve fund.
Your share is not arbitrary. Each unit is allocated a percentage of the common expenses, set out in the corporation's declaration, which is why a two-bedroom unit with a parking space and locker pays more than a one-bedroom without them. Whatever the corporation spends flows through the same categories:
• Common element upkeep: cleaning, landscaping, snow removal, elevator servicing, and repairs to hallways, roofs, and parking structures
• Reserve fund contributions: savings set aside for major repair and replacement projects such as roofs, windows, and pavement
• Corporation insurance: the property and liability policies every Ontario condo corporation must carry
• Shared utilities: water, common area hydro and gas, and in some buildings bulk in-suite utilities
• Professional services: condo management fees, the annual audit, legal advice, and engineering work such as reserve fund studies
• Administration: CAO assessments, banking, insurance appraisals, and owner communications
For a deeper look at how much should be going into that savings component each year, read our guide: How Much Should We Contribute to the Reserve Fund.
Do Condo Fees Include Utilities and Insurance?
Usually in part, and this is where Ontario buildings differ most. Some condos include water, heat, and even in-suite hydro in the monthly fee; others meter every unit separately, so the fee covers only common area utilities. Two buildings with very different fees may cost owners almost the same once utility bills are added up, which is worth remembering before anyone declares a neighbouring building cheaper.
Insurance is less flexible. This is not legal advice, but generally speaking under Ontario law, every condominium corporation must carry property insurance and liability insurance under sections 99 and 102 of the Condominium Act, 1998, and those premiums are paid through your condo fees. What the corporation's policy does not cover is your personal property: owners need their own policy for belongings, unit improvements, and personal liability.
For more on how those shared costs get divided among units, read our guide: How Condo Fees Are Calculated.
What Do Condo Fees Not Cover?
Condo fees do not cover your property taxes, your mortgage, insurance for your belongings or unit upgrades, or most maintenance inside your unit. Owners are sometimes surprised by this, so it is worth spelling out:
• Property taxes: billed to each owner directly by the municipality
• Personal insurance: contents, unit improvements, and liability coverage are the owner's responsibility
• In-unit maintenance and repairs: generally the owner's job, subject to what your declaration says
• Special assessments: one-time levies collected when the corporation faces an unexpected shortfall, charged on top of regular fees
• Chargebacks: costs the corporation recovers from a specific owner whose unit or conduct caused the expense
The boundary between unit and common element repairs is set by your declaration and Ontario's standard unit rules, and it trips up even experienced directors. A good manager will map those boundaries for your building before a dispute arises, not after.
How Should Your Board See Where Every Dollar Goes?
Your management company should be able to show any director, at any time, exactly how fees are being spent. Ontario corporations must prepare financial statements every year, have them audited, and have the board approve them. Strong monthly reporting makes that audit a formality instead of a scramble: budget versus actual by category, bank reconciliations, arrears with follow-up status, paid invoices, and the current reserve fund balance.
That level of transparency is what good condo corp management looks like in practice. If your current reports amount to a bank balance and a stack of invoices, that is a gap worth addressing, because unexplained spending is how modest fee concerns grow into AGM revolts and, eventually, lien situations when frustrated owners stop paying. At Sapphire, we find that boards field far fewer fee complaints once owners can see the categories behind the number. Sapphire Condominium Management provides the kind of condominium management London Ontario and Sarnia boards rely on when they want that clarity every month, not once a year. If your board would like a second opinion on its financial statements, we will do a financial review on us: https://sapphirecondomgmt.ca/financial-review-on-us/
And when the annual budget review points to a higher fee, our guide on What's a Reasonable Condo Fee Increase in Ontario will help you set expectations with owners before the notices go out.
Frequently Asked Questions
Q: Do condo fees in Ontario include property taxes?
A: No. Property taxes are billed to each unit owner directly by the municipality and are completely separate from condo fees. Your monthly fee covers the corporation's shared costs, such as common element maintenance, corporation insurance, shared utilities, and reserve fund contributions, none of which involve your individual tax bill.
Q: Why are our condo fees higher than the building next door?
A: Fees reflect what is included, not just how well a building is run. Buildings differ in amenities, age, whether utilities are bulk-metered, and how seriously they fund the reserve. A noticeably low fee can signal underfunding that later surfaces as a special assessment, so compare what each fee covers before comparing the number.
Q: Who can help our board understand our condo fee breakdown in London or Sarnia Ontario?
A: A CMRAO-licensed management company should walk your board through the full breakdown and provide monthly reports that tie every dollar to a category. Sapphire Condominium Management offers condo management in London Ontario and condo management in Sarnia Ontario, and provides a free financial review if your board wants a second opinion.
Related Reading
→ How Much Should We Contribute to the Reserve Fund