I know that when it comes to choosing a Fort St John realtor, it is important to choose someone who is knowledgeable about both the local and national real estate markets, who is experienced with both buying and selling homes, and who is well versed in every aspect of the buying and selling processes.
As an expert in the real estate industry, I pride myself on staying ahead where industry practices and education are concerned. I believe that working hard to constantly improve my knowledge is well worth it when I have the opportunity to share what I have learned in order to help my clients.
Buying a home is rarely an easy process, simply because there is so much involved. I am well aware of this and want to do everything in my power to help my clients understand the process and make the most educated decisions possible when it comes to the home they decide to purchase.
A common topic that comes up with my clients who wish to purchase a condo are strata fees. Many of my clients, especially those who are purchasing a condo for the first time, are unfamiliar with strata fees - what they are, how they are determined, and where the fees go - so I have created this post to cover just that!
What Are Strata Fees?
To better understand strata fees, let’s first discuss what strata lots are. A strata development is a building that is divided into separate units or strata lots. This type of building structure allows for individuals to obtain ownership of a particular strata lot, otherwise known as a condo unit.
Strata fees are monthly fees that are paid by the owners of the strata lots to the strata corporation. The strata corporation then uses those fees to pay for the common expenses of the strata development.
How are Strata Fees Determined?
Strata fees will vary from owner to owner because each individual’s fee is based on the portion/size of the strata development they own.
Your individual strata fee will be calculated by dividing the total cost of the strata’s expenses by the unit entitlement of your strata lot. Based on this calculation, the larger your unit, the higher your fee.
Where Does the Money from Strata Fees Go?
There are two different funds that every strata corporation in British Columbia must maintain and the funds paid by each individual owner of a strata lot are divided up between the two.
The common expenses that are paid on a regular basis – building insurance, maintenance and upkeep, repairs, water, snow removal, garbage removal etc. – are deposited and paid for from the operating fund. Expenses that are unusual or unexpected – building upgrades, new roof, etc. – are deposited and paid for from the contingency reserve fund.
By asking for an estimated budget of expenses for the year, you can get a better idea of what your portion of the strata fees will be and what your monthly payments will look like.
Strata type properties can be excellent properties for individuals that travel frequently, work long hours or prefer spending their weekends and evenings doing something other than yard work or snow removal.
As a Fort St John Realtor, I am experienced working with strata developments and can help you figure out if the benefits of a condominium or townhome property are right for you!