Why Are Condo Fees So High in Alberta?

Published November 3, 2026 · By Shantel Kalakalo, President, Kalham Consulting Ltd.

If you own a condominium in Alberta, you've probably asked yourself this question at least once: Why do my condo fees keep going up?

It's a fair question, particularly when monthly fees increase but there don't appear to be any significant improvements to the property.

The reality is that condominium fees cover much more than most owners realize. They pay for the day-to-day operation of the property while also helping fund major repairs and replacements that may not be required for another 10, 15 or even 25 years.

Understanding how those funds are managed, and why proper long-term planning matters, can help owners better appreciate where their money is going.

1. Your Condo Fees Pay for More Than You Think

Condominium fees generally support two different financial needs: operating expenses and reserve fund contributions.

Operating Expenses

These are the everyday costs of running and maintaining the condominium property, which may include:

• Landscaping and snow removal
• Building cleaning and routine maintenance
• Insurance
• Utilities for common areas
• Condo management fees
• Minor repairs and service contracts
• Administrative and professional expenses

Reserve Fund Contributions

The reserve fund provides money for major repairs and replacements of the condominium corporation's property over time.

Depending on the condominium's responsibilities, these could include:

• Balconies and related components
• Roofing systems
• Exterior wall cladding and windows
• Doors
• Asphalt
• Concrete areas
• Mechanical and electrical systems
• Elevators
• Other common property building components
• Professional fees & reserve fund study

Although owners may not see these major expenditures every year, the need to fund them doesn't disappear.

2. Why Do Condo Fees Keep Increasing?

There isn't one simple answer.

Insurance premiums, labour costs, utilities, maintenance contracts and construction costs can all increase over time.

Another key factor is that buildings are getting older.

As components age, they eventually need to be repaired or replaced. These projects don't become less expensive simply because they are delayed. In some cases, postponing necessary maintenance can increase the eventual cost.

Regular maintenance and timely repairs are important in helping building components achieve their anticipated service lives.

For example, repairing roofing deficiencies, maintaining balcony membranes and addressing water infiltration concerns can help prevent premature deterioration and more expensive repairs.

Condominium corporations should also consider appropriate technical reviews, inspections and professional assessments to better understand component conditions and make informed decisions about repairs and replacements.

3. Are Low Condo Fees Really a Good Thing?

Not necessarily.

Low condominium fees aren't automatically a sign of good financial management, just as higher fees don't necessarily mean a property is being managed well.

A condominium corporation may have relatively low monthly fees because it has:

• Lower operating expenses
• Fewer amenities or shared building systems
• Recently completed major replacements
• A well-funded reserve
• Deferred maintenance or inadequate reserve fund contributions

The important question isn't whether your condominium fees are lower than those of a neighbouring development.

It's whether the contributions are appropriate for your property's actual needs.

The goal isn't to have the lowest fees. It's to establish contributions that are reasonable, sustainable and appropriate for the property's long-term needs.

4. A Realistic Example: Two Similar Townhouse Developments

Let's consider two hypothetical condominium corporations in Edmonton.

Both are 20 years old and consist of 50 three-storey townhouse units with balconies, asphalt shingle roofing, exterior wall cladding, windows, doors, paved roadways and common landscaped areas.

The buildings are similar in age, construction and condition, but they've taken different approaches to reserve fund contributions.

For illustration, contributions are assumed to be equal per unit and constant over the 20-year period. Figures exclude interest earnings, investment income and reserve fund expenditures.

That's a difference of approximately $83 per unit per month toward the reserve fund.

Over 20 years, Corporation A has contributed $1 million more than Corporation B.

Now that both developments are 20 years old, several components may be approaching major repairs or replacement.

Typical Component Service Lives

These are general planning estimates for many Alberta townhouse condominiums. Actual service lives vary depending on construction, materials, maintenance, exposure, repairs and site conditions.

Proper maintenance and timely repairs are important for components to achieve these anticipated service lives.

Let's assume updated Reserve Fund Studies identify approximately $2.5 million in anticipated major repairs and replacements over the next 15 to 20 years.

Corporation A has been setting aside more money throughout the life of the development and may be in a stronger financial position to fund upcoming projects, depending on its actual reserve balance and previous expenditures.

Corporation B has contributed $1 million less over the same period.

Unless that difference has been offset by other funding sources, investment income or lower expenditures, the Board may need to consider substantial contribution increases, special levies, borrowing or a combination of funding options.

The example illustrates why looking only at today's monthly condominium fees doesn't tell the full story.

What Happens When the Owners Who Benefited Have Already Sold?

A condominium corporation may maintain lower reserve contributions for many years. During that time, owners benefit from lower monthly payments while the buildings continue to age.

Eventually, major repairs become necessary. But by then, many of the original owners may have sold their units. The owners who benefited from years of lower contributions aren't necessarily the same owners being asked to address the resulting funding shortfall. This is why reviewing the Reserve Fund Study and financial documents before purchasing a condominium is so important.

Understanding the property's condition, upcoming expenditures and funding strategy can help prospective buyers make more informed decisions.

5. What About Special Levies?

Special levies are another source of frustration for condominium owners. However, they aren't always evidence of poor financial management. They may be required because of:

• Unexpected deterioration
• Changing construction costs
• Unforeseen building conditions
• Emergencies or unanticipated repairs
• Funding decisions made many years earlier

Alberta condominium legislation provides for special levies, subject to applicable requirements and procedures.

Even a well-planned condominium corporation may occasionally require a special levy when circumstances change.

The important consideration is whether the Board is actively reviewing the corporation's financial position and planning for anticipated expenditures.

6. How Much Should a Condominium Have in Its Reserve Fund?

There is no single dollar amount that is appropriate for every condominium corporation. The amount depends on the property's size, age, construction, condition, previous repairs, replacement schedules and anticipated future costs. A Reserve Fund Study develops a long-term financial plan based on anticipated major repairs and replacements.

It's not simply about how much money is sitting in the bank today. A corporation with $1 million in its reserve fund may be well positioned if major repairs are many years away. Another corporation with the same balance could be facing a significant funding challenge if a $3 million building envelope project is approaching. The important question is whether the corporation's current contributions and available funds are reasonably aligned with its anticipated future obligations.

7. Maintenance, Technical Reviews and Professional Oversight Matter

A Reserve Fund Study is an important planning tool, but it should not replace regular maintenance, detailed technical assessments or qualified professional involvement when necessary.

Condominium Boards should establish appropriate maintenance programs and regularly review the condition of their major building components.

Technical audits and specialized assessments may be required for roofing, building envelopes, balconies, mechanical systems and other significant components.

When major repairs or replacements are scheduled, qualified professionals should be engaged where appropriate to assist with:

• Investigating and assessing existing conditions
• Determining appropriate repair or replacement strategies
• Preparing specifications and tender documents
• Reviewing contractor quotations
• Providing construction oversight and quality assurance
• Confirming that completed work meets the intended requirements

Proper oversight can help protect the corporation's investment and reduce the likelihood of premature failures or additional expenditures. A realistic long-term financial plan needs to be supported by appropriate maintenance, regular reviews and informed decisions about the work being completed.

8. What Should Owners Be Asking Their Boards?

Condominium owners may find it helpful to ask:

• What portion of our monthly fees goes toward operating expenses versus reserve fund contributions?
• What major repairs and replacements are anticipated over the next five years?
• Are our reserve fund contributions consistent with the approved funding plan?
• Have any significant projects been deferred?
• Have construction costs or building conditions changed since the last Reserve Fund Study?
• Are regular repairs and maintenance being completed to help building components achieve their anticipated service lives?
• Are technical assessments and qualified professionals being engaged when necessary?
• Is the Board reviewing and updating its long-term financial plan regularly?

These questions can help owners better understand their condominium's financial position and the decisions being made on their behalf.

9. A Reserve Fund Study Is a Planning Tool, Not a Crystal Ball

Buildings rarely follow a perfectly predictable schedule. A roof may last longer than anticipated. A balcony membrane may deteriorate sooner than expected. Construction costs can increase or unexpected deficiencies may be discovered. In Alberta, condominium corporations are generally required to complete a Reserve Fund Study and review their reserve fund plan at least every five years, subject to applicable legislative requirements. However, reviewing the plan only once every five years may not be sufficient for effective financial management. Boards should monitor their reserve fund expenditures, contributions, component conditions and upcoming projects regularly. A good Reserve Fund Study provides the starting point. Ongoing monitoring, maintenance and responsible decisions help keep the plan relevant.

Final Thoughts: Higher Condo Fees Aren't Always the Problem

A well-maintained condominium with realistic financial planning may cost more to operate today, but that planning can help reduce the likelihood of unpleasant financial surprises in the future. Lower condominium fees may seem attractive, particularly when comparing properties, but they don't necessarily represent better long-term value. The objective isn't to collect more money simply for the sake of having a larger reserve fund. It's to understand the property's needs, plan for anticipated expenditures and establish a funding strategy that is appropriate for the condominium corporation.

A Reserve Fund Study is more than a spreadsheet full of numbers.

It's a financial roadmap that can help condominium Boards make informed decisions, manage their properties responsibly and plan for the future.

Related Alberta resources

• How Often Is a Reserve Fund Study Required in Alberta?
• Reserve Fund Study Preparation Checklist
• Government of Alberta: Reserve funds
• Government of Alberta: Special levies

General educational information only. The examples are hypothetical and not a substitute for property-specific advice or review of current legislation.