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When renting out a condo, one of the most common questions landlords (and some tenants!) ask is: who’s responsible for condo fees? Although this might appear straightforward, it’s a nuanced topic—especially here in Ontario. Let's clarify who pays what, how it impacts your taxes, and whether these fees are truly "worth it.
1. Condo Fees Are the Landlord’s Responsibility by Default
By default, condo fees are tied to ownership—not tenancy. That means the unit owner (landlord) is responsible for paying these fees directly to the condo corporation.
That said, landlords typically account for these fees when setting rent—so tenants often indirectly cover them through higher rent.
In rare cases, the lease may require tenants to pay condo fees directly—but this must be explicitly stated in the agreement. It’s uncommon and often not advisable for landlords.
2. What Condo Fees Actually Cover
Condo fees fund common-element upkeep, operations, reserve funds, and services such as lobby maintenance, elevators, gyms, and cleaning.
Importantly, condo fees do not include property taxes, which are billed separately by the municipality.
3. Rent vs. Condo Fees: How They’re Handled
In most leases, you’ll see an “all-in rent” price rather than a line item for condo fees. That’s because landlords bake fees into the rent to ensure they remain covered.
Tenants rarely pay condo fees directly—unless specified by the lease. Even then, as an Ontario renter cautioned:
“Depends on the landlord, but I’d say it’s atypical to have the renter pay the condo fees. Condo fees should just result in up-charged rent.”
4. Tax Considerations: Condo Fees as Deductions
When you live in the condo as your principal residence, condo fees are not tax deductible—they’re considered a personal expense.
However, if you rent out the condo, you can deduct condo fees as allowable rental expenses. You’re allowed to deduct your share of fees related to maintenance, repairs, and common property upkeep.
The CRA also categorizes this under “rental expenses,” particularly maintenance or management/admin fees.
5. Are Condo Fees Worth It?
While they add cost, condo fees often include valuable services: building maintenance, amenities, and contributions to emergency reserve funds. These perks can enhance tenant appeal and justify higher rent.
But it’s important to weigh the total cost—factoring in condo fees, taxes, insurance, and utilities—when evaluating property profitability.
Final Summary
In Ontario, condo fees are primarily the landlord’s obligation—but they’re often recouped through rent. Tenants usually don’t pay them separately unless the lease explicitly states otherwise. For tax purposes, owners renting out the condo can deduct condo fees as rental expenses, while owner-occupied units offer no such tax benefit. Ultimately, condo fees often reflect amenities and protections, and whether they’re “worth it” depends on your rental strategy and financial goals.
Frequently Asked Questions
1. Does rent include condo fees?
Typically, yes—rent often includes condo fees indirectly. Landlords factor fees into the rent, so tenants usually don’t pay them separately, unless the lease explicitly assigns responsibility.
2. Do renters pay condo fees in Ontario?
Not usually. The landlord or owner pays them. Rent may be adjusted to offset fees, but tenants paying them directly is rare, and must be clearly outlined in the lease.
3. Can you claim condo fees on your income tax in Ontario?
Owner-occupied: No—you can’t deduct condo fees as a personal expense.
Rental property: Yes—condo fees related to maintenance and common expenses are deductible as rental expenses.
4. Are condo fees worth it?
They cover valuable amenities—maintenance, management, and reserve funding—that can make your property attractive and better maintained. Whether they’re “worth it” depends on balancing cost versus benefit in rental income and property upkeep.
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