Eight years ago, when I sold my house and moved into a condominium, I wrote a post titled “Ten things about downsizing to a condo.” This follow-up post on new costs and consideration of condo living is based on my personal experience. Some aspects of condo living become obvious only when you live in one.

While I am still a proponent of condo living, I am a little more realistic about some of its challenges. Problems take on different dimensions when you live in Multi-Unit Residential Buildings (MURB). If you are not prepared, you may be in for unpleasant surprises, some of which can cost you.

Before downsizing to a condominium, you need to account for new costs and considerations, some of which, didn’t exist a few years ago. COVID-19, Cannabis legislation, and Electric Vehicle charging are good examples.

So, here are ten new costs and considerations of condo living that you should know about.

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 input from their residents and implemented policies that limit smoking to designated areas. You will need to decide if you want to live in a cannabis-friendly condominium or not.

When it comes to cannabis, some folks adopt the “Don’t listen to the man!” policy and ignore condo guidelines. You get used to it.

EV charging stations in condos

Over 30% of the population in large metropolitan cities live in MURBs.

With residents increasingly investing in electric vehicles, the demand for Electric Vehicle (EV) charging stations is up. 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. EV charging equipment and service providers have developed solutions that address the various limitations of condo and apartment buildings. Communal charging stations and shared power units are examples.

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. The cost to install a Tesla Wall Connector in my underground parking spot is approximately $4,000. However, my share of the electric panel and legal fees will cost me another $2000.

Going green is not cheap!

Social distancing in condo buildings

The impact of COVID-19 has been global in scope. You should not underestimate its effect on condo living.

A well-managed condo where residents follow social distancing and other health and safety guidelines is key to its resident’s well-being. Despite the spread of COVID in big cities, anecdotes of condominiums bearing the brunt of it have been rare. Long-term care homes have been exceptions. Limiting the number of people in elevators, restrictions on guests, no-touch doors and deliveries, and other such practices have helped condos manage their day-to-day operations and the welfare of their residents without significant disruptions.

Apart from some minor inconveniences, life in my building has been largely normal.

Impact of facility restrictions

Unlike a detached home, lockdown restrictions have a greater impact when you live in an MDRU.

Various amenities and facilities that make a condominium building attractive may become less accessible based on regulatory guidelines. When access to shared facilities such as the swimming pool, party room, gym, squash, and tennis courts is limited or completely shut off, it can impact your routine. Many residents appear to have made investments in health and fitness equipment that range from free weights to Peletons.

If the high prices and demand for fitness equipment are anything to go by, the concept of home gyms is here to stay.

Who is liable for property damage?

Believe me, an insurance claim for water damage to your unit can get complicated.

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 have a clear understanding of your liability exposure. 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 last thing you want is to get caught with insufficient insurance coverage.

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., are covered by the condo’s insurance company. Your insurance coverage is limited to the enhancements you have made to the unit and the contents within it. 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.

City development may kill your view

This one cuts both ways.

Sustainable development around your neighbourhood can improve the area you live in and potentially increase the value of your property. However, if you live in a building with undeveloped land around you, the city can issue development permits that may end up completely blocking your views and vistas. While you never have complete control of city developments, you can make sure that the view from the unit you are planning to purchase has a lesser chance of getting blocked by future construction.

Condo fees will climb

Over eight years, the monthly maintenance fee (condo fee) that I pay has risen by about 25%.

For many people weighing buying a condo over a detached home, the maintenance fee charged by the building corporation is a big 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 towards water, heating, power, TV, and Internet services.

When you factor in the lower taxes that you typically pay for a condo, you may be able to justify the monthly expense.

Big-ticket repairs

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 out of 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 in tandem with your thermostat, allowing you to control the temperature (heat and cold) within your condo. If your heat pump fails in the middle of winter, your discomfort may go beyond the cold. A replacement heat pump can set you back around $5,000.

In comparison, repairs to the furnace, air-conditioning, roofing, etc., in a home can add up to a lot more than what you would spend in a condominium.

The price of convenience

It is generally believed that detached house prices appreciate faster than condos. I look at it as a trade-off between convenience and investment 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 that it may take longer for you to sell your condo at your desired price point.

So, there you have the ten new costs and considerations of condo living.

I do want to reiterate that I do not have buyer’s remorse concerning my condo purchase. However, knowing what I know now would have better prepared me for condo living.