Monthly maintenance fees and common charges are not a source of profitability for the building, but merely the cost to run the building. These costs can be offset, by income-generating operations such as rent for commercial space. Undoubtedly, maintenance and common charges will increase over time due to inflation.

Common Charges (Condo’s) – The condo board sets the monthly common charges (or CC’s) based on a percentage of common interest for each unit within the building, generally based on the square footage of the unit. This percentage is multiplied by the total operating cost of the building, which can vary wildly based on amenities. Common charges cover “common services and amenities” shared by other condo residents, including the management fees and operating expenses for the building. Property taxes are billed separately to each individual condo unit owner.

Maintenance Fees (Co-ops) – The monthly maintenance fee is set by the co-ops board of directors based on the number of shares allotted to each unit. A co-op is a corporation, with a set number of shares, with each unit allocated a certain amount. Like condos, the charge is generally based on the square footage of the unit. Monthly maintenance fees cover building expenses such as utilities, insurance and staff salaries. Also, instead of each unit receiving individual tax bills from the city, the entire building receives one big tax bill and therefore, part of the monthly maintenance charge goes towards property taxes.