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Time to pass on condo fees to tenants?

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guest | 18 Apr 2012, 02:35 PM Agree 0

“It's clear that the convenience of condo living is important to many Canadians,” said Farhaneh Haque, Director of mortgage advice for TD Canada Trust, which commissioned the survey. “They are willing to pay the monthly fees that come with owning a condo."
The TD Canada Trust 2012 Condo Poll surveyed urban Canadians who recently bought or intend to buy a condo and found they are drawn to condos because they require less maintenance (60%), are more  affordable (45%), and offer more amenities (25%) than a house.
Those findings specifically focused on condo amenities back up investors arguing monthly condo fees should explicitly be factored into rents. That move, if adopted by a majority of condo investors, could bump up rental values in new developments by as much as 10 per cent, say analysts.
That leverage increases in markets with occupancy rates sit near or at record highs. Many investors in the boom markets of Alberta and Saskatchewan are already asking tenants to pay all condo fees, some even adding a premium.
That may sit better with young renters hungry for hot and cold luxury, if their condo-buying counterparts are anything to go by.
The TD poll found that one-third of condo buyers (35%) are willing to pay up to $200 per month in condo fees, 44% would pay up to $400 and 17% would pay up to $800.
Across all cities, Torontonians are willing to pay the highest fees; 38% are willing to pay more than $400 and 16% more than $600.
Conversely, the majority of Montreal residents (59%) wouldn't pay more than $200 per month in condo fees.
  • Charles Park | 20 Apr 2012, 12:17 PM Agree 0
    Thiw sounds no different than what currently exists in commercial "Net" leases.

    Landords even pass on property taxes to the tenants as well and are only negotiating what is NET to them.
  • wingerjeff1 | 23 Apr 2012, 12:06 PM Agree 0
    If you have a tennant that doesn't mind paying too much money for rent them go ahead. otherwise passing on the fees sounds like a great idea but you will end up with something that is tougher to rent and depends on how large the fees are.
  • Jim1945 | 23 Apr 2012, 09:23 PM Agree 0
    Asking the condo administration to manage your money isn't really a smart idea. How many? 75%? hmmm ok....
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