Calgary condo owners struggling with rising condo fees — experts say this is what's causing it

Carole Benner doesn't rent. She owns. But the senior is still finding factors outside of her control are hiking up costs and threatening to drive her from the home she loves.

Why? Condo fees.

Calgary's tight rental market has people sleeping in SUVs and searching for new places when their rent jumps unpredictably. But when CBC Calgary asked community members about housing, those paying condo fees said they also feel a squeeze.

Brenner, who is on a fixed income, now pays $555 in condo fees each month — nearly double the cost of what she was paying when she first moved in eight years ago. She knew fees would increase, but she didn't think it would be by this much.

"My monthly income will be entirely taken up with living," said Benner, who lives alone in northwest Calgary. "There's no excess to fall back on for anything. And that's not a very good way when you're at my age."

She's not alone. In CBC Calgary's text messaging community, several people worried about the increasing fees. One owner worried this was the reason their condo isn't selling, and a renter said this is exactly why they've chosen to rent rather than buy.

Several people on condo boards said they feel helpless watching condo fees rise with no end in sight.

When CBC Calgary set out to find out why, board members and industry experts alike say it's due to three main reasons: increasing insurance costs, inflation and the need to put money into reserve funds.

Each condo building is different. But fees typically cover maintenance of the common space, like the lobby, hallways, elevators, shared amenities and outdoor spaces. That can include snow removal and lawn care.

It also covers condo insurance, at least for the part of the building that is owned in common, and sometimes utilities like heat and water. These are often costs that a homeowner or freehold condo owner would also pay, but those property owners normally have individual control over when and how the bills come in.

Condo owners pay these costs as a group.

Rebecca Hewitt, owner of Condo Savvy — a company that reviews condominium documents for potential buyers in Calgary — says 90 per cent of the properties she's reviewed are seeing increases in their insurance premiums, "which obviously played a role in increasing their fees."

"When we have these big weather events, regardless of whether or not they're in Alberta, they do impact premiums. And then in any given property, if there are claims, it has an impact on the premium and therefore condo fees," said Hewitt.

Several community members who texted in blamed insurance rates specifically, and one who was also on her board said the issue was too few companies competing with each other to offer good rates.