3 min read

Condominium fees across Winnipeg have increased significantly in recent years due to inflation, insurance, utilities, and aging infrastructure. However, the most important question is not whether fees are rising, but whether they are properly structured to protect the corporation long-term.

Poorly structured fees create special assessments, deferred maintenance, and declining property values.

The Biggest Mistake Most Boards Make

Many boards compare their fees to neighboring buildings without considering key differences:

  • Age of the building
  • Reserve fund strength
  • Size and complexity
  • Included services
  • Insurance deductibles
  • Long-term capital plans

Two buildings with identical fees may have dramatically different financial health.

The Hidden Risks of Fees That Are Too Low

Low condominium fees are often viewed positively, but they frequently indicate:

  • Underfunded reserve funds
  • Deferred maintenance
  • Future special assessments
  • Increased financial risk for owners

This directly impacts property values and marketability.Buyers, lenders, and realtors increasingly review reserve strength and financial sustainability.

What Well-Run Condominium Corporations Do Differently

Strong corporations focus on long-term financial stability, including:

  • Proper reserve fund contributions
  • Accurate budgeting based on actual operating costs
  • Proactive maintenance planning
  • Professional financial oversight
  • Regular benchmarking against comparable properties

This protects owners and supports long-term property values.

Why Benchmarking Matters

Benchmarking allows boards to understand how their building compares in key areas:

  • Monthly condominium fees
  • Operating expenses per unit
  • Reserve fund contributions
  • Insurance costs
  • Management costs

This provides clarity and confidence in decision making.

How Winnipeg Boards Can Get Objective Insight

Independent benchmarking provides boards with a clear, data-driven view of their corporation’s financial position.It helps answer critical questions:

  • Are fees appropriate?
  • Is the reserve fund sufficient?
  • Are operating costs reasonable?
  • Are there financial risks that need to be addressed?

Strong Financial Management Protects Everyone

Condominium corporations that actively monitor and manage their financial position are better positioned to avoid special assessments, maintain their buildings, and protect property values.Board members have a fiduciary responsibility to ensure the corporation is financially sustainable.Professional guidance and objective benchmarking help support that responsibility.

Request a complimentary Condominium Benchmark Report for your building:
https://www.imperialproperties.ca/benchmark-report