Downsizing to a Condo: 18 Things You Should Know

Ten years ago, when I sold my house and moved into a condominium, I had only positive things to say about the transition. Some of the challenges, costs, and considerations of downsizing to a condominium were not apparent to me until I started living in one.

When living in Multi-Unit Residential Buildings (MURB), problems take on different dimensions. If you are not prepared, you may be in for unpleasant surprises, some of which can cost you.

For clarity, condominiums are units owned by individuals, while apartments are owned and managed by property management companies and rented out to individuals. This definition may vary based on your country of residence. Many of the points below apply to apartment dwellers as well.

So here are eighteen things you should know about downsizing to a condo.

The fire alarm can be an annoyance

When you move into a condo, you don’t give the fire alarm system a second thought. The thing about fire alarms is that they tend to go off when it is least convenient for you. Living on a high floor with a view can be fun and relaxing. But, walking down twenty-seven floors in the middle of the night gives you pause for thought. Plan for the fire alarm to disrupt your sleep once every four-six months.

Things can get cozy

Even a large condo can feel a little tight when you have guests. If you are willing to cough up some dollars, guest rooms in condos can be handy for guests who stay over. And, for those of you who are hugely into privacy, you will figure out ways to adjust your blinds “just so” that you can see outside without being seen by your neighbor.

Building maintenance may not align with your schedule

In a well-maintained condo, several things fall under this category. Whether it is painting parking garage lines or carpet cleaning, you have very little control over what gets maintained and when. You quickly realize that if you ignore the Management Office’s notices, you may get stuck without water for a whole day or be startled by a window washer dangling outside your window peering at you.

Elevators can be unpredictable

When you move to a condo after living in a house, elevators take a little getting used to. They work fine, except when you are in a hurry or planning a big party. It’s funny how when one elevator goes on service, another gets reserved for a unit owner to move in or out.

Your handyman neighbor can drive you up the wall

A power drill going off during a customer conference call can be a bit inconvenient or downright unsettling. Warning notices regarding repairs in adjoining units can be helpful, but if you are a Teleworker and one of your neighbors is into a long-term renovation project, good luck!

EV charging capacity may be limited

If you own an electric car or plan to buy one, this may be important.

While, installing a charging station in a home may be as simple as adding a 40-amp breaker to the electric panel, delivering power to dedicated condo parking spots can get complex. Existing condos were not built with dedicated charging stations in mind. Power availability becomes the major constraint limiting the roll-out of EV charging stations to every resident who needs one. Installation costs for a charging station in a condo parkade will vary. The distance from the electric panel and the availability of a pillar in the parking spot are two main factors.

Going green is not cheap!

Know who is liable for property damage

A pipe break in an upstairs unit can result in water damage to the unit below. In such cases, the insurance companies representing the condo building, the damage-causing unit above, and the impacted unit below must align on who covers what before the claims get settled. If you happen to be the one who causes the damage, you need to understand your liability exposure clearly. Good knowledge of the condominium’s insurance deductibles and comprehensive coverage for your unit is critical to ensure that you are not out of pocket if an unexpected event impacts you.

The good and bad of condo insurance

The good thing about condo insurance is that it tends to be lower than what you would pay for a detached home.

The primary reason is that the basic structure of your unit, such as walls, baseboards, ceiling, etc., is covered by the condo’s insurance company. Your insurance coverage is limited to your enhancements to the unit and its contents. The bad news is that if the unit above causes you to submit a claim, your insurance will increase despite you being at no fault.

Big-ticket repairs can cost you

When you live in a house, everything that breaks is your problem.

As a condo owner, what repairs you pay for will vary from one condominium to another. Since repairs to common elements come from the condominium’s reserve funds, a condo with a healthy reserve is generally a good bet. Everything within your unit other than the infrastructure is your responsibility. That may include the heat pump, which works with your thermostat, allowing you to control your condo’s temperature (heat and cold.) If your heat pump fails in the middle of winter, your discomfort may go beyond the cold. A replacement heat pump and associated labor can set you back anywhere between $5,000 and $10,000.

If you are wondering about temporary fixes, you can get a portable air cooler for around $300.

If it’s any consolation, repairs to the furnace, air-conditioning, roofing, etc., in a home can add up to much more than what you would typically spend in a condominium.

City development may kill your view

This one cuts both ways.

Sustainable development around your neighborhood can improve your community and potentially increase your property’s value. However, if you live in a building with undeveloped land around you, the city can issue development permits that may completely block your views and vistas. While you never have complete control of city developments, you can ensure that the view from the unit you plan to purchase has a lesser chance of getting blocked by future construction.

Condo fees will climb

Over ten years, the monthly maintenance fee (condo fee) that I pay has risen by about 40%.

For many people weighing buying a condo over a detached home, the maintenance fee charged by the building corporation is a significant deterrent. It may not be all bad, depending on what services are included within that fee. For instance, my condo fee is high; but it covers my monthly charges for water, heating, power, TV, and Internet services.

Plan for after parties 

If your party winds up at 11:00 PM, party rooms are the way to go. Food and wine spills on the party room carpet can dent your pocket if your insurance does not cover it. Now, if you are really into partying, you may need to plan for an after-party in your condo. As for blaring AC DC after midnight, you will need to tone it down.

Cannabis-friendly condominiums

You may need to stop and think about this a bit. If you plan on smoking weed in your unit, you don’t want to end up in a building with a no-smoking policy.

Recreational marijuana is legal in Canada. Unlike people smoking weed in their backyards or growing a couple of marijuana plants, a condo corridor reeking of pot can be a put-off for many. Perhaps in a few years, we will start accepting marijuana smells as normal; I don’t believe we are there yet. Many condominiums have taken their residents’ input and implemented policies limiting smoking to designated areas. You must decide whether you want to live in a cannabis-friendly condominium.

Recycling can be a bother

Garbage disposal in a condo is easy. Garbage chutes on every floor make it convenient. No more hanging on to your garbage until your weekly garbage pick-up day. However, if you buy many things that come in large cardboard boxes or drink a lot of beer, things can get a little tricky. Your condo may not have recycling rooms on every floor, which would entail multiple trips to the recycling room, with hard-to-fold cardboard boxes, on the ground floor.

Storage lockers are like home basements

Most condos have storage lockers for stuff you don’t use daily.  When you store things in your storage locker, you seldom go back to get them. When you need to find something in a hurry, you rarely can. If you are looking for that extension cord, you are probably better off picking up a new one at the corner store.

The shopping cart becomes your friend 

I did not give it a second thought when my friend Margaret gifted me a bundle buggy just after we moved into the condo. Dragging a cart around felt uncool, so I avoided using it. After multiple trips to the underground garage and back to bring up groceries and beer, I invested in a second one.

Get a portable grill

Barbecuing on the balcony of your high-floor condo unit does have an appeal. However, most condos have fire-related restrictions regarding what the balconies can or cannot be used for. If you are big into barbecuing, you may have to use the shared barbecues offered by the building or use a portable grill, as many condo-dwellers do.

George Foreman’s portable grill works fine for me.

The price of convenience

It is generally believed that detached house prices appreciate faster than the price of condos. I look at it as a trade-off between convenience and capital growth.

While this is mostly true, the city you live in may play a part in the price appreciation of condos. In the major Canadian cities, condo resale and rental prices have kept pace with detached home prices, often taking them to unjustifiable levels. However, paying high condo fees along with mortgage payments is not for everyone, which may mean it may take longer to sell your condo at your desired price point.

So, there you have it. If you plan on downsizing to a condo, you now know more than I did when I took the plunge.

This post originally appeared on Reboot Social.