What the Condo Budget Can Tell You

I've reviewed seven status certificates over the last two weeks, and it got me thinking about one of the documents I use for insights.

Also, I made a more in-depth YouTube video on the review process — if you haven't seen it yet, the video link is here.

But here today, I want to talk about the budget.

Status certificate packages come in a couple different forms — sometimes a single large document, sometimes a folder with 15 to 20 documents inside.

Either way, the budget will be in there.

It's easy to read, and it answers two good questions.

When are condo fees likely to increase next?

The budget will show you the corporation's fiscal year somewhere near the top of the page.

Condos issue their new budget for the start of a new fiscal year.

And most of the time, that means an increase in condo fees.

So, if the fiscal year runs June to May, the owners should expect a change in the condo fees starting June 1st.

How much did fees go up last year?

This one takes a bit of simple math.

The budget will show you the current year's Common Element Fee — that's the technical term for what buyers know as condo fees.

It will usually also show you the same line item from the prior year.

Divide the current year number by the prior year number, and you've got the year-over-year percentage change.

In the example above, that's a 4% increase.

Like most things in a status certificate, that number needs context before you draw any hard conclusions. It's a starting point, not a verdict.

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I'm not suggesting this becomes part of your standard process — that's what we're here for.

But if you're curious, or you just want a better sense of the buildings you're looking in, this is a quick and easy way to get there.

Especially for those of you doing a lot of condo business in Toronto, building up that kind of working knowledge over time is genuinely useful.

Latest YouTube Video:
The Condo Status Certificate Review